We worked with a company that was in the rehabilitation industry. They had 90 employees and were bringing us in to evaluate their current employee related costs. They had been in business for over 30 years and were looking to examine the way they were currently doing.
Our needs analysis revealed several issues. The first issue was that they had their controller, and her assistant wearing multiple hats. They were responsible for the accounting, benefits administration, the safety program, unemployment claims and human resources. Their primary duties were accounting which is a full-time task, but the rest of the tasks were added to their plate.
This resulted in split focus, inefficiency and exposed them to several potential liabilities from an employer standpoint.
The second issue was that their health care costs were getting out of control, their time clock system did not integrate with their payroll provider and they were in an expensive workers comp classification. These issues combined created a high cost scenario with no room to add additional staff to help out with these responsibilities.
Our solution was to pair them up with a outsourced human resource company. The company was able to reduce the heavy load on the accounting department relating to the employee administration tasks they were assigned.
The client was able to consolidate their Human Resources, safety risk management, benefits administration and payroll to this company.
Our solution also provided our client savings on health insurance and workers comp. Our client was able to get a dedicated HR department, save money on employee benefits, save money on their workers comp, and integrate their time clock software as well.
This solution saved our client over $10,000 of hard dollar costs per year. We were able to offset the administration fees of the outsourced human resource company with the cost savings of benefits, workers compensation, and payroll.