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Free Information on Outsourcing Your Business

In today`s economy it seems that many businesses find that outsourcing is the best option to lower cost and increase revenue. There are however things to be learned about outsourcing that many businesses to not yet have a firm grasp on. One internet site is offering a e-book about the topic and it is available on the web for everyone. The best part is that ?Financial Opportunities of Human Resources Outsourcing? is available for free online. Included in the discussion is a detailed ROI analysis of a 30-person company with an average workforce salary in excess of $80,000. According to the analysis, the efficiencies created by outsourcing payroll, benefits, and other HR administrative functions can lead to a substantial financial opportunity in terms of pursuing either top- or bottom-line revenue.

The paper explains how PEOs can deliver this ROI result with three basic methods. First off is by avoiding the time sink of transactional HR. Administrative HR involves the day-to-day transactional tasks included in activities such as payroll processing and records updating. A recent small business study reported that the average small business owner spends between 7 to 25 percent of his or her time on such tasks. However, 89 percent of PEO customers believe that outsourcing significantly reduces these types of time demands. Next is by containing long-term HR costs. The most significant HR areas of PEO cost containment are benefits and technology support, in which a wide array of high-caliber benefits options are backed by a state-of-the-art delivery system. The longer a customer stays with a PEO, the greater impact these economies of scale have upon long-term savings.

Finally, one needs to minimize risk. In today?s litigious climate there is little room for administrative error. If a company incorrectly handles any of its numerous HR functions, it opens itself up to lawsuits. PEOs take responsibility for selected portions of a company?s employer-related risk. The paper also discusses how PEOs contribute to the development of workforce talent. Outsourced administration allows in-house staff to devote more time to recruiting, training, finetuning policies and procedures, and laying down the building blocks of a robust company culture. As a result, PEOs enhance a company?s ability to attract, develop, and retain highly skilled and motivated professionals.