Three Ways to Reduce Employment Costs With Human Resources ...

The Human Resources Outsourcing industry remains strong through the weak economic recovery. Recent studies indicate that organizations, both large and small, either already have an HRO relationship and plan to expand it, or are considering one in the coming year. The survey, conducted by HfS Research and the London School of Economics, finds that 31% of business already outsource human resources and are looking to increase outsourced services over the next year. An additional 15% don?t currently outsource, but are looking to begin outsourcing various HR functions in the coming 12 months.

What is the driver for these businesses to outsource human resources?

OutsourceGeek-Human Resources Outsourcing: This episode of UHY?s Business in the Eye of the Storm goes over different views on human resources outsourcing

It?s no secret that in lean economic times, business owners are pressed to identify expenses within an organization that can be reduced or minimized. Employment overhead (payroll, taxes, workers? compensation insurance, employee benefits, governmental compliance, and other employee-related cost centers) typically comprise the single highest area of expense within a company. More than rent, or facilities operations, or equipment, or compliance, human resources administration and expenses weigh heaviest on the business?s bottom line. By engaging a human resources outsourcing firm, the business owner is able to reduce employment costs in 3 primary ways.

Streamlined HR Systems

HRO firms offer streamlined human resource systems to their clients, significantly minimizing management?s time in overseeing daily administrative tasks. Non-productive ?paper pushing? can be outsourced to the HR firm, enabling key staff to focus on their core competencies. Processes such as payroll processing, tax filing and compliance, Unemployment Claims administration, workers? compensation management, and employee benefits enrollment and management can all easily and efficiently be outsourced. The HRO firm rolls the client?s administrative processes into their existing systems, offering seamless management at a fraction of the cost.

Cost effective insurance products.

Let me proceed with this content page. Small businesses are at a significant disadvantage when it comes to purchasing insurance products for their employees. Both workers? compensation insurance and employee benefits have become a significant financial burden on employers. While a small employer is limited in the range of benefit plans and insurance offerings they can provide, HR Outsourcing firms forge relationships with large regional and national insurers. Through these relationships, and the resulting economies-of-scale, HROs offer their clients richer, more cost-effective insurance plans.

Reducing employment risks

All of this is a very important piece of this specific study. Government compliance and regulations continue to grow in complexity and scale. Month after month, new case law is created and many of these decisions directly impact employers on the ground. From wage and hour issues, to discrimination restrictions, to protected classes of employees and new disability guidelines, employers often walk through a minefield of risk. Without dedicated human resources personnel or legal counsel, it?s likely a business will be faced with some form of an employment lawsuit in the coming years which can costs tens-of-thousands of dollars. With close to 100,000 employment claims filed in 2010 (the highest on record!), employers recognize the risk and are turning to Human Resource Outsourcing firms to assist them in managing these risks. HR firms employ teams of experts in a wide range of disciplines and are able to provide accurate and timely advice to assist their clients avoid expensive employment lawsuits.

Human Resources Outsourcing may not be the solution for every employment need. But nevertheless, for most employers with less than two hundred employees looking to reduce employment expenses and overhead, outsourcing human resources may be exactly what their organization needs.

Ari Rosenstein is the Director of Marketing at CPEhr, a human resource outsourcing firm, specializing in labor law compliance and PEO services. It currently services 15,000 employees and hundreds of clients nationwide.

We should go on with this story. CPEhr was founded in 1982 and assists small employers with the management of their employees and compliance with employment regulations.

Services include: ? HR Compliance ? Human Resources Administration ? Legislative Compliance ? Employee Benefits ? Risk Management and Workers? Compensation ? Payroll and Tax Administration ? Management and Employee Training ? Recruiting Services

Source: http://tm-outsourcing.com/three-ways-to-reduce-employment-costs-with-human-resources-outsourcing/

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