The COVID-19 pandemic wreaked havoc on many concepts of HR. The Great Resignation coupled with the rising inflation fueled the importance of cost-effective HR solutions.
The rising need for high-quality recruitment and retention tactics puts serious pressure on internal HR departments. That's why many companies choose to outsource various HR tasks. While saving time for your team, the majority of outsourcing partners can't help you cut HR-related expenses in a significant manner.
To see real cost-cutting benefits, companies need to consider comprehensive HR outsourcing solutions. That's where Navigate comes in.
How Navigate Reduces HR Costs
With a comprehensive approach to HR outsourcing, Navigate can help your company feel a real difference in the HR expenses.
1. Health Insurance
Navigate uses economies of scale to provide you access to high-quality health benefits. By adding all its clients' employees to the master benefits plan, this outsourcing partner shares enterprise-level benefits.
This means that you can offer your team Fortune-500 benefits at a price you can afford. This doesn't just help you cut benefits costs. This approach takes you closer to becoming the employer of choice for top talent in your industry.
According to SHRM's survey, more than 55% of American employees say that whether they like health insurance is a deciding factor in staying or quitting their current job. Accordingly, better health benefits foster retention, reduce turnover, and cut hiring costs.
2. Retirement Plans
When it comes to retirement plans, high-quality offers are rarely an option for small and midsize businesses (SMBs). Navigate can help you cut costs by becoming your plan co-sponsor and leveraging economies of scale when choosing the best plan for your employees.
Meanwhile, this outsourcing solution can set up, audit, and manage retirement plans without your involvement. While benefiting from reduced administrative responsibilities, you can also take advantage of shared fiduciary liability.
3. Workers' Compensation Insurance
No matter what state you operate in, you will be able to use Navigate's workers' comp insurance. This can be highly useful if Navigate's experience modifier is better than yours is. If you have a history of workers' comp claims, you probably have a high modifier that increases your premiums.
By outsourcing HR to Navigate, you can cut costs by lowering workers' compensation premium payments. Your company will not have to pay the 25% of the total premium upfront, so you can pay-as-you-go on a weekly basis or whatever your pay cycle may be.
Additionally, Navigate assists with setting up return-to-work programs and workers comp claims processing policies to decrease claim costs and prevent significant premium spikes. The company also performs safety audits and manages workplace risks to prevent accidents and minimize or avoid claims.
4. Unemployment Claims Management
Managing unemployment claims can be complex and time-consuming. By taking the wrong approach to management, you may miss invalid unemployment claims and increase your unemployment insurance rate needlessly.
Navigate's experts manage all new claims from A to Z, challenge invalid claims, and represent your company at unemployment insurance hearings.
Most outsourcing solutions can help with payroll calculations and some may file your taxes for an additional fee.
Navigate has a team of experts who can handle employment tax filing for you. These specialists have sufficient time to calculate payroll accurately and file taxes on time. This can help you avoid sizable payroll fines.
6. Minimize Litigation Risks
Employee lawsuits can take a serious toll on any company. Besides high litigation costs, you could face reputation issues and struggle with retention.
For example, over the past five years, workplace racial discrimination cost American companies $172 billion. Many of these incidents occurred due to a lack of knowledge and training.
Navigate can consult your team on the best and the latest HR practices to help you create a non-discriminatory and non-toxic work environment. The outsourcing solution can arrange training for managers and employees to teach them how to avoid litigation risks.
7. Consolidate HR Vendors
As your company's HR needs grow so does the number of apps it uses. Buying new programs is costly. Making them work together is time-consuming.
Navigate gives you access to an integrated HR module that can handle all your in-house team's needs including payroll, benefits administration, and PTO tracking. You can also take advantage of self-service portals for employees and managers.
8. Lower Turnover
During the Great Resignation, turnover rates across all U.S. industries are at their all-time highs. In 2021, a record number of workers quit their jobs. When a worker leaves, it can take between 30% and 100% of their annual salary to find, onboard, and train a replacement.
Giving your HR department time to focus on company culture.
Offering better benefits options.
Implementing best HR practices.
One of the key reasons for the Big Quit is worker burnout. By outsourcing HR functions to Navigate, you can prevent burnout in your overwhelmed HR department.
Learn How Much You Can Save
Choosing a comprehensive HR solution can help you cut costs. However, it's not a one-size-fits-all answer to your HR problems. The amount you can save depends on the specifics of your company.
Navigate can maximize cost-cutting benefits for any business. Its top strengths are competitive benefits, best-in-class HR software, HR compliance expertise, and a history of improving company cultures with HR best practices.
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Tom DiSilva has been providing professional human resource services for over 30 years. As the CEO of Navigate PEO, he actively partners with organizations of all sizes in the Greater New England area and across the country to help their businesses grow. He has expertise in HR and Labor Management, offering guidance and support for key areas of business such as negotiations, operations management, employee coaching, and employee benefits design.