Contact Customer Support  (888) 818-0707
EmpowerHR white logo
Table of Contents
HR professional walking client through cost saving measures

Does Outsourcing HR Consulting Services Reduce Costs?

Share This:

Being a business owner is not an easy role. Stress doesn’t even begin to describe the never-ending list of responsibilities that need to be managed in a day, the errors you have to fix, the conversations you need to meditate, the selling and positioning you need to do for potential new clients and customers. It’s hella hard. So looking for simple and easy solutions to streamline and operate your business while also saving in your bottom line sounds pretty fantastic and maybe too good to be true, but trust us, it’s not.

As much as the back of the house is key in theatre production, the same stands for back-end operations for businesses. For many SMBs, back-end operations are those processes, procedures, and tasks that allow the front office to operate as well as it does. These tasks usually fall in the realm of finance, IT, and HR. With HR, in particular, the need to take care of back-office operations is vital and cannot be sidelined even though we wish it were an area we did not need to think about.

HR plays a crucial role in so many integral functions that make the business work. This function is very relevant to your business’s survival from running metric reports, managing benefits administration, payroll runs, talent management strategy, and training. The question is, with a role that’s so multifaceted would it be more cost-effective to hire multiple people to get the tasks done, or would it be cheaper to outsource? It can be pretty tricky finding all of the major HR skills in one individual, and if you find yourself expanding your back office with many people to carry out the HR functions, why not save yourself the stress by outsourcing?

Realistically, an effective HR department can ensure compliance, quality onboarding, and a thorough training process while nurturing the business’s culture. But a good number of the tasks can be automated and outsourced to HR consultants, significantly reducing these additional costs while maximizing time and reducing those ever-increasing monetary expenses.

So how does using HR consultants reduce costs given all the work that needs to be done? Let’s take a look:

Slashed Salary Expenses

On average, a Human Resources Manager’s base salary ranges from $70,000- $100,000. As much as we wish it could just be one person managing a whole department, that practice leads to burnout quickly and more headaches no one wants. As such, a team is formed, but with that team comes additional salaries that, frankly, your business doesn’t need to carry. Using outsourced HR consultants, you get the full stacked team you need at a fraction of the cost. Are you daydreaming about dollar signs? Yeah, us too.

Minimized Training And Development Costs

Outsourced HR consultants ensure the best hands are hired in the most cost-effective way possible while providing training and development that do not sit on the sidelines. Your business can invest in upgrading IT systems, processing software, and new R&D through the cost savings, while still putting great resources in quarterbacking your professional development strategy. With your outsourced HR consultants in place, you can get the high quality of support and expertise you need to upskill your staff, lower your turnover, and increase your employee engagement. If this is sounding too good to be true, don’t worry, it’s not.

Avoiding Penalties From Noncompliance

No business wants to get a surprise letter from a regulatory body outlining fines related to its business practices. Or worse, an attorney’s letter with outrageous demands from a disgruntled employee. That would put a wrench in anyone’s day. The inability to keep up can result in serious financial consequences even if the situation seems minor. An outsourced HR consultant can help ensure that your business stays on top of all relevant regulations by performing regularly scheduled audits. By abiding by regulations through an outsourced HR consultant, you ensure risk is well managed, avoid financial penalties, and protect your employees. That sounds much more appetizing than the alternative.

Are you still wondering if outsourcing HR consulting services will save you some pennies? A quality outsourcing service provider will do more than just add cost savings. They will add value to your business through cost savings, streamlining processes, and ensuring risks are well managed. This partnership will help keep you compliant while giving you and your employees ample time to strategize and nurture your business’s growth.