Why Outsource HR?


This guide features insights on the challenges faced by today’s business owners and leaders, and the tools a PEO can offer to help solve these problems.

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Employment regulations are increasingly complex

  • Since 1980, the number of labor laws has increased by more than 60%
  • Laws that have changed recently include:
    • ADA, COBRA, FMLA, HIPAA, Immigration, Unemployment Benefits, Lilly Ledbetter Fair Pay Act

Managing HR is time consuming and expensive

  • Employee administration paperwork is a huge burden:
    • On average, business owners spend 7%-25% of their time handling employee paperwork
    • When adding time spent on all HR tasks, this figure rises to 35%-45%
  • High cost of regulation and tax related compliance:
    • Businesses with fewer than 500 employees spend about $5,000 annually per employee
    • Businesses with fewer than 20 employees spend 60% more per employee than large firms to comply with federal regulations

Small business are challenged with finding and retaining star employees

  • The limited buying scale of small businesses make it cost prohibitive for them to offer comprehensive benefits to help attract and retain top performers
  • The number one small business issue is cost and availability of insurance
  • Access to a 401(k) retirement savings plan for small business employees has dropped from 28% to 19%

Contact Us today to learn more!


HR employment infographic