Outsourcing Human Resources Means In-sourcing Productivity
Outsourcing Human Resources Gets the Most Out of Every New Employee
How can a company raise the return each employee brings to the business?
Raise your ROE! Any company can improve its “return on employees” by making sure every one of the staff is focused on profit-generating activities. When the burdens of overhead administration begin to bog down that return, it’s time to seek help. That’s because anything that gives you gain relief from the administrative burden helps the entire company better focus on money-making activities.
If outsourcing seems like an extravagance to you take another look at the benefits. For small- and medium-size businesses, outsourcing human resources provides a solid return on employees when it comes to keeping them focused on the business of making the company money.
Getting the ROI on Your ROE
If your expectation from an investment is the ROI (return on investment), what is your expectation of an employee? Think of it as the ROE. When a company makes an investment, it makes judgments about the potential ROI. The same isn’t always true when considering a new hire. In fact, the hiring decision might go a lot differently if a business anticipated the ROE, or return on employee.
Will Hiring an Employee for Administration Give You the Best Return?
When payroll and other HR services grow to a point where it isn’t feasible for you to handle them yourself, the usual next option is to hire an employee to take them over. Having someone else take over those tasks would increase the time an owner needs to focus on sales and profits. However, does hiring an employee to handle overhead activities really provide the company with the positive ROE it should be seeking?
The “ROE” of the First Administrative Employee
The “ROE” on an employee hired solely for administrative duties might look like:
ANTICIPATED INVESTMENT:
- Learning curve for handling payroll and other specific tasks
- Trial and error experience mastering the new processes.
ANTICIPATED RETURN:
- Reduce management time on administration
- Allow management to re-focus on profit-generating activities
Take Advantage of Our ROE without Hiring One of Your Own
As a specialist in outsourcing human resources, CBR is going to have a much different return on its employees for those specific administrative tasks. Why?
- The focus of our business is on your outsource HR tasks.
- When it comes to any administrative or human resources duties, CBR has no learning curve.
- Unlike the experience you would have in hiring a new internal employee, there is no trial-and-error period for gaining experience, either.
- For a monthly arrangement that is much smaller than the cost of hiring an employee, a company can expect increased focus and reduced administrative costs.
The “ROE” when the “E” is CBR
The top reason business owners give for seeking an outsourcing human resources partner like CBR, the following five reasons come up the most:
- Improving company focus (58%)
- Reducing and controlling operating costs (54%)
- Releasing internal resources for other purposes (38%)
- Gaining access to world-class capabilities (36%)
- Leveraging resources not available internally (25%)
Borrow Experience
Outsourcing human resources to a company like CBR means you get to “borrow” each of the specialized experiences you need from a staff of HR professionals only as you need them. That is a highly efficient and productive way of getting things done. In terms of gaining access to world-class capabilities, CBR can help even the smallest companies offer employee healthcare benefits, workers’ compensation program, 401K audits and other services economically. By leveraging our greater buying power, CBR can become your group health insurance provider and allow you to offer your employees the class of benefits normally found only in large companies.
In any growing business, time is not on your side, but time is for sale.
Outsourcing human resources can give you back more time for profit-generating activities than you might expect. To review what human resource tasks and other business administration functions CBR can help you reduce the amount of time you spend running the business so you can spend it growing the business. Speak to one of our business counselors. Call us toll-free at (888) 700-8512. Let us show you areas that are costing you too much and show you how we can do them for less.
