Lead Smarter. Grow Stronger

Outsourcing HR yields substantial cost savings. 

For many small to medium-sized businesses (SMBs), managing human resources in-house can be a daunting and costly task. From recruitment to compliance, HR responsibilities can stretch internal resources and distract from core business functions. Outsourcing HR functions offers a cost-effective solution, providing professional expertise that not only alleviates these challenges but also has the potential to transform and propel your business forward.

One of the primary reasons SMBs choose to outsource HR is the substantial cost savings. Employing a full in-house team requires salaries, benefits, training, and providing workspace. The cost of hiring a full-time, in-house HR team in the United States can be costly. For example, an HR manager’s salary averages $80,000 annually, with an HR assistant and recruiter adding $50,000 and $60,000, respectively. Benefits typically add 30% to 40% of the base salary, and although the cost of office space varies widely, on average, it can be around $5,000 to $10,000 per employee per year. Altogether, a small HR team of three could cost between $250,000 and $300,000 annually. 

Outsourcing to a specialized HR partner like SovranHR, allows businesses to access top-tier talent without the overhead costs. This means no salaries, benefits, or office space costs. Instead, you pay for the services you need, when you need them. This is particularly beneficial for smaller businesses that don’t require extensive HR services. Outsourcing also allows you to scale your HR services up or down based on your business needs. This flexibility ensures you only pay for what you use, making it a cost-effective solution.

Tip: Consider the annual costs of hiring full-time HR staff versus outsourcing. Most SMBs save between 20-30% annually by outsourcing their HR needs.

 

Simplify the complexity of labor laws and regulations.

Staying compliant with labor laws and regulations can be costly and time-consuming – it’s a headache for many SMBs. Whether it’s staying up to date with the latest compliance changes or ensuring your company is protected from potential legal issues, the stakes are high. Outsourcing HR ensures you have experts who keep you compliant, reducing the risk of costly fines and legal issues. SovranHR partners with Mineral, leading experts in HR compliance, to ensure our clients stay ahead of changing regulations and never miss a critical HR or compliance requirement.

According to a recent survey, small businesses face these HR and compliance challenges:

Mineral® State of HR Survey, 2020

Case Study: One of our clients, a 70-person government contractor, faced significant challenges in staying compliant with the constantly evolving multi-state labor laws, leading to multiple warnings from regulators. After partnering with SovranHR, they experienced a dramatic reduction in compliance issues, allowing them to refocus on scaling their business.

HR is the catalyst for long-term success.

To attract and retain top talent, it’s essential to recognize the vital role HR plays in driving organizational growth and sustainability. Without a positive work environment and a structured recruitment and onboarding process, businesses risk losing valuable talent to competitors.

SovranHR provides professional recruitment services designed to identify the ideal candidates, streamline the onboarding process, and set your employees up for long-term success from day one. Our expert team also offers succession planning to ensure that your key positions are always filled, maintaining seamless operations.

It all starts with fostering a supportive work environment that boosts morale and attracts new talent. By implementing strategies that enhance retention rates and motivate employees, organizations can achieve a win-win situation: reducing costs and driving overall business performance. 

With SovranHR’s strategic HR consulting, businesses can develop programs that foster a positive work culture, promote employee engagement, and enhance overall job satisfaction. From automation to ongoing training and development, our outsourced HR solutions are tailored to fit your unique company culture – ensuring long-term, sustainable growth.

 

Tip: Strong onboarding increases new hire retention rate by 82%. Consider outsourcing onboarding processes to boost long-term employee satisfaction.

Cutting-edge technology is non-negotiable.

SMBs frequently struggle to keep pace with technological advancements in HR operations. Many still depend on manual data entry and processing via spreadsheets, a method that is both time-consuming and inefficient. This manual approach significantly heightens the risk of errors and delays, diverting valuable time and resources from other essential HR tasks – ultimately affecting the overall operational efficiency of the organization.

SovranHR transforms HR, elevating efficiency and productivity through streamlined processes. We provide access to cutting-edge HR technologies, including automation tools that streamline payroll, time tracking, recruitment, and more. With these advanced solutions, your organization can operate more efficiently and maintain a competitive edge. 

Success Story: One of our clients, a provider of specialized SMEs to Federal Government Agencies, faced inefficiencies and errors during high-volume open enrollment periods due to manual data entry. SovranHR introduced a cost-effective software solution that automated the process, improving workflow efficiency, reducing errors, and allowing the HR department to focus on strategic tasks, resulting in increased productivity and employee satisfaction.

Quote from a Satisfied Client: “The decision to outsource our HR support to this team has proven to be a wise investment. Their commitment to excellence, combined with their tailored approach, has exceeded our expectations. This level of support has not only eased the burden on our internal HR staff but has also allowed them to focus on more strategic initiatives that contribute to our company’s growth.” – R. Camarillo, Managing Director 

By outsourcing HR functions, you can enjoy significant cost savings and access to expert solutions that enhance recruitment, compliance, and employee engagement – allowing you to focus on growth and success. If your small to medium-sized business is feeling the strain of managing HR in-house, it’s time to consider outsourcing. 

Don’t let HR challenges hold you back. Schedule your free consultation now and see the difference outsourcing can make for your business.

 

Learn how SovranHR can transform your workplace into a thriving business that nurtures dynamic teams and drives enduring success.

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