subject: Reasons For Outsourcing Human Resources [print this page] Human resources are a vital department in every company. Without human resources you would have employees, without employees you would not be able to run and operate your business.
Every company has human resources and sometimes the human resources responsibilities are outsources. What are the reasons for outsourcing and how do I know if it is right for my company? Saving Money by Outsourcing In order to run a human resources department properly you will need an HR manager and usually one other employee.
The annual salary of a human resource manager is usually around sixty to seventy thousand dollars a year. Then you need to add in another forty thousand dollar a year salary for an administrative person. You will spend roughly one hundred thousand dollars a year in employee's salary just to run your human resources department. This amount does not include any of the payroll liabilities that you will have to pay to the IRS. You will also have a cost to carry the department's space on your rent.
They will need to work somewhere and space is money. When you outsource your human resources you can eliminate this cost. Health Insurance Health insurance is the number one debate in our country and employers will soon be mandated to offer health insurance to their employees. Health insurance is a major cost and can cost employers around three hundred dollars per employee.
When you outsource your HR needs you will have the option of adding health insurance to your contract. The outsourcing companies have thousands of employees on their payroll therefore getting a cheaper rate from the insurance companies. This could save you an additional fifty thousand dollars a year. Employee Forms The outsourcing company will file all of your 941 quarterly and yearly reports for you. These reports will be filed on time and accurately.
You will be able to review them and approve them and they will be sent direct to the IRS. There will be no more worries of late fees and penalty for late filings. Your outsourcing company will also provide all necessary background and credit checks for you. This will save your company valuable time and money. They will also provide your company with all the necessary new hire packets and terminations packets. If you have more than twenty employees on your company's payroll it would be beneficial for you to outsource your human resource needs. Not only will you save valuable company time, you will also be saving the company hundreds of thousands of dollars each and every year.
