Small businesses are struggling to deal with the challenges presented by the current economy. PEO Canada can support small to medium size companies in managing their costs by providing a team of dedicated individuals to assist with managing human resource functions. One way that companies use to control their costs is to re-distribute the work load to alleviate the need to hire new staff. Hiring new staff can be expensive, but re-distributing duties creates an added burden on existing management and employees. These added burdens take away from the ability of these employees to focus on their core duties which help to increase revenue and grow the business. Outsourcing human resource functions can assist with cost management, while allowing employers to utilize the human capital in their companies for growing their business.
According to business writer Anne Mueller, the costs of hiring new employees are not limited to just the salary of the new employee (Mueller, 2015). There are other costs associated with hiring a new employee such as recruitment, training, and benefits. Benefits can be relatively minor costs such as providing coffee and tea in the lunch room. They can also be more substantial costs such as health and wellness plans, dental, life and disability insurance, pension plans, and matching employee contributions into a retirement savings program. There are also integration costs to consider when hiring employees. These costs can include, but are not limited to, a work station with a desk, computer, software, and a telephone. Another consideration when hiring a new employee can be considering whether or not the new hire will be the right “fit”.
PEO Canada can help small and medium size companies free up resources to activities which help generate revenue by taking over the administration and management of human resources, payroll, workers’ compensation and benefits. We assign a dedicated contact for each piece of our service offerings. These contacts become an extension of your team, except they don’t work from your office, they work from ours. Your PEO Canada team will keep you compliant and pay your employees accurately and on time. Outsourcing your human resource requirements enables you to manage costs and get back to focusing on your business in these challenging times.
Mueller, A. (2015, 02 23). Investopedia. Retrieved 09 08, 2015, from http://www.investopedia.com/financial-edge/0711/the-cost-of-hiring-a-new-employee.aspx
Mary Jane Burchell / Business Consultant / PEO Canada