TriNet’s Free White Paper Reveals the Financial Opportunity of Human Resources Outsourcing

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The TriNet Group, a nationwide provider of human resources for small and mid-sized companies, has announced the release of a new white paper, “Financial Opportunities of Human Resources Outsourcing.” The paper describes how executives at small and medium-sized businesses can offload their HR function to a Professional Employer Organization (PEO) in order to help achieve two of their most critical objectives: hiring top-quality talent and retaining focus on revenue-generating activities.

Financial Opportunities of Human Resources Outsourcing

A free copy of “Financial Opportunities of Human Resources Outsourcing” can be obtained at Included in the discussion is a detailed ROI analysis of a 30-person company with an average workforce salary in excess of $80,000. According to the analysis, the efficiencies created by outsourcing payroll, benefits, and other HR administrative functions can lead to a substantial financial opportunity in terms of pursuing either top- or bottom-line revenue.

The paper explains how PEOs can deliver this ROI result:

1. Avoiding the time sink of transactional HR. Administrative HR involves the day-to-day transactional tasks included in activities such as payroll processing and records updating. A recent small business study reported that the average small business owner spends between 7 to 25 percent of his or her time on such tasks. However, 89 percent of PEO customers believe that outsourcing significantly reduces these types of time demands, according to a national survey supported by the National Association of Professional Employer Organizations and the Society of Human Resources Management. These time gains are secured in part by the PEO’s ability to act as a single provider for a customer’s entire range of HR functions.

2. Containing long-term HR costs. The most significant HR areas of PEO cost containment are benefits and technology support, in which a wide array of high-caliber benefits options are backed by a state-of-the-art delivery system. The longer a customer stays with a PEO, the greater impact these economies of scale have upon long-term savings.

3. Minimizing risk. In today’s litigious climate there is little room for administrative error. If a company incorrectly handles any of its numerous HR functions, it opens itself up to lawsuits. PEOs take responsibility for selected portions of a company’s employer-related risk—including paying wages and related withholdings taxes, administering fiduciary responsibility for benefits plan compliance, and staying on top of employment laws and regulations such as the Fair Labor Standards Act, COBRA, FMLA, HIPAA, and many others.

The paper also discusses how PEOs contribute to the development of workforce talent. Outsourced administration allows in-house staff to devote more time to recruiting, training, finetuning policies and procedures, and laying down the building blocks of a robust company culture. As a result, PEOs enhance a company’s ability to attract, develop, and retain highly skilled and motivated professionals.

About TriNet Group, Inc.

Founded in 1988, TriNet delivers comprehensive human resource services to small and medium-sized companies. Its offerings include human asset administration, employer risk management, online HR services and support, payroll processing, tax compliance, workers' compensation, group health and welfare products, and strategic human capital consulting services throughout the United States and Canada. More than simply an HR services provider, TriNet contractually assumes certain legal and financial responsibilities regarding employer rights, legal compliance and risk management.

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Greg Howard
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