The Savings of Outsourcing HR
When you start out in business, HR may not be one of your first thoughts to consider involving in your business. But in reality, HR is often the backbone of a business, as it makes sure you’re always fully compliant, in line with laws and regulations, and have the right procedures and processes in place to ensure your business runs smoothly with a valued, productive and satisfied workforce.
When you do come to think about HR, outsourcing is often the main way to go. With this, many business owners see outsourcing HR as an additional cost to their business, and may be put off by the idea of spending more to outsource, particularly if they’re unsure of the benefits of having their own HR department. However, it’s important to know that outsourcing HR to a team of experienced professionals can actually save a lot of money in the long run.
So how can outsourcing HR save you and your business money?
Let’s take a look.
- Resource functions indicate that businesses spend 27% less on HR services per employee than the typical company that does not outsource their HR. Do you know how much you spend on HR per employee, on average? By outsourcing your HR, you can typically knock off around 27% of that!
- Further research shows that businesses outsourcing their HR needs to HR specialists such as HR Your Business Matters, can reduce their labour costs by around 29%. What could a 29% reduction in your labour costs do for your business?
- Additional research also indicates that outsourcing just some of the HR needs of a business, enables those businesses to operate with 24% fewer internal HR staff per 1000 employees. Imagine how much your business would be able to save with a 24% reduction in staffing costs?
- Interestingly, the research also found that businesses outsourcing HR were able to spend 50% less on outsourcing in general. This is because we don’t cover just HR, as people specialists, we cover multiple departments such as recruitment, health & safety, payroll and everything else in between, meaning you wouldn’t have to pay out for multiple different companies when outsourcing. Doesn’t it sound great to be able to half your outsourcing costs? What could you use this money for instead? Think big!
- The companies researched also reported being able to dedicate 25% greater spending to technology. This means the 25% increase in your budget can be used to help your business grow, evolve, and scale, whether you spend it on technology or something else beneficial to your business. What else would you use the money for?
Are you looking to save money by outsourcing your HR?
If you’d like to make some of these savings, then give us a call. Our experienced HR professionals will be happy to discuss your business and HR needs. Before you know it, you’ll be planning how to spend all the money you’ve saved! Give us a call on 01733 739660 today.