When it comes to your bottom line, Human Resources is often overlooked as an area where businesses can leverage extra savings. Here are three ways to reduce costs, boost benefits, and become more efficient in the process.
Studies show that companies that partner with a PEO see a 21% savings on HR administration. A PEO can help employers gain a new perspective on cost-cutting decisions and streamlining processes for efficiency. According to a report conducted by the National Association of Professional Employer Organizations (NAPEO), PEOs provide access to more HR services at a cost that is close to $450 lower per employee compared to companies that manage HR services in-house.
This is because of a PEO’s ability to group employees of small businesses into one pool to negotiate better health plans at lower rates.
Read More: How to Handle Toxic Employees
PEO can help employers save by eliminating the vulnerabilities that put employers at risk for costly compliance violations, such as:
Complying with the labor laws and regulations governed by the state where employees are working, not just where a business is based
Overseeing Fair Labor Standards Act (FLSA) workforce classifications, and overtime pay
Managing Family Medical Leave Act (FMLA) eligibility and administration
Responding to EEOC complaints
Reviewing the employee handbook, outlining company policies and procedures and create state-specific versions
Providing on-site risk management and guidance on compliance training to create a safer workplace
Guidance on managing remote workers
Read More: Outsourcing HR: Myths versus Reality
According to a Society for Human Resource Management study, nearly six out of 10 organizations outsource HR to save money. So, how much can your business save? Find out how Propel HR helped one company save big. Download this one-page success story which outlines strategies and overall results.
Propel HR President Lee Yarborough was recently elected Chair of the National Association of Professional Employer Organizations (NAPEO) Board of Directors.
About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs.