Value Proposition
As the HR Outsourcing industry has matured, the motivations for outsourcing have become clear. While cost savings were anticipated to be the key driver, one of the most cited reasons is the access to HR expertise and certified professionals. Nowhere else can a company gain such a depth of knowledge that can contribute to process improvements, risk mitigation etc. for such a minimal investment.
Other benefits provided by HR Outsourcing include:
- Reduce the time spent on HR administration.
- Offer quality employee benefit plans at affordable rates.
- Improve operational procedures and reduce employer liabilities.
- Integrate HR functions through state-of-the-art HRMS technology.
- Improve their focus on their core function or business.
- Reduce the total cost of labor and improve productivity.
Studies have proven the value in HR Outsourcing as well. Below are some examples of this success:
According to a PriceWaterhouseCoopers “Trendsetter Barometer” study of the 360 fastest growing, privately held, product and service companies, over 60% of CEOs enjoy savings greater than 16% with HR Outsourcing. Across all respondents in the survey, the average cost savings was 9.3% of HR outsourcing users. Of all the CEOs reporting, 81% have indicated their expectations have either been met or exceeded. Barometer Trendsetter Survey: Almost all Fast-Growth Companies Outsourcing HR functions, April 20, 2005)
| Average Annual Savings for US Businesses that Outsource HR Functions |
| 1 - 9 Employees: |
$5,000 |
| 10 - 19 Employees: |
$10,000 |
| 20 - 49 Employees: |
$18,700 |
| 50 - 99 Employees: |
$32,000 |
| 100+: |
$78,000 |