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Question: Will I save money by going with an HRO like Doherty?
Answer: It is possible. Your hard dollar cost savings will depend on your current HR costs. If you’re already outsourcing functions such as payroll, 401(k), HR services and training, workers' compensation and unemployment claims management, Section 125 administration, insurance plans, COBRA administration, etc., through multiple vendors, you may benefit by consolidating services under a single source, Doherty. You will also benefit from economies of scale and Doherty’s considerable purchasing power.
Another consideration is soft – or opportunity – costs. These are the areas where you and other key staff spend valuable time that could be freed up for more strategic work. As an example, Doherty can save you numerous hours on writing employment policies, producing employee handbooks, researching medical insurance plans, implementing a loss control program, providing HR and compliance training for managers and supervisors, processing payroll in-house, benefits administration, vacation and sick leave tracking, responding to unemployment claims, records administration, etc. Every hour you spend on non-core tasks can mean lost business revenue.
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