The main purpose of hr outsourcing…saving money

Whether you are looking for hard or soft-dollar savings…both can be found by outsourcing some or all of your HR functions.

But first, you have to want to be an employer that wants happy employees.  Happy employees are productive employees.  In addition, happy employees do not leave you.  Thus, the huge cost of turnover, which is oftentimes, estimated as much as 50% of gross payroll due to lost management time, re-training and recruiting. 

Therefore, if you have in place a benefits package that rivals those of big companies…why would your employees leave?  The fact is, the will not.  The hard dollar costs of benefits for employees are more than saved in hard and soft dollar savings.

Whether you go with a PEO (professional employer organization) or ASO (administrative service organization) to help you manage your human resources, for small to mid-sized companies, the economies of scale realized by these models will make your hr outsourcing a cost-effective tool that actually prop up your bottom line.