Cut Employment Costs

Monday, February 8, 2010 Home

Reduce Administrative Overhead and Cut Insurance Costs - Even in the Toughest Economy.

In tough economic times, all businesses must get back the fundamentals – focus on improving your core service or product, increase sales and profitability, and contain operating expenses. Many small employers find the challenge daunting, if not completely overwhelming.

In an effort to cut administrative overhead and reduce insurance costs, thousands of local employers have begun turning to Professional Employer Organizations (PEOs) and Human Resources Outsourcing firms over the past several years. Growing in popularity, PEOs and HR Outsourcing firms can help employers cut costs in two fundamental ways:

Economies of Scale. The PEO/HRO firm establishes relationships with large regional insurance companies and vendors. By pooling thousands of employees in one program they enjoy the reduced rates and larger selection typically offered by much larger corporations. While a private firm may struggle to find cost-effective benefits and insurance policies, the PEO/HRO is in the position to negotiate lower fees and premiums.

More Efficient Systems. While small employers attempt to remain focused on their core competencies, they are often distracted by the complex and cumbersome regulations relating to employment laws and employee administration. The time and energy demands placed on management sap critical manpower away from their key business objectives. In a PEO/HRO relationship, the outsourcing firm has the infrastructure, staff and systems in place to manage the employment obligations more efficiently and cost-effectively. The client can refocus staff and, in many cases, reduce headcount.

CPEhr – Helping Business Reduce Employment Costs for Almost 30 Years

Based in Los Angeles, California, CPEhr has the relationships and experience to successfully help clients cut their employment costs. Through personal relationships and highly flexible services, CPEhr clients report a wide range of benefits:

30% increase in management’s time
Over $50,000 saved in personnel and overhead reduction
Close to $100,000 in prevented lawsuits and attorney’s fees
25% decrease in workers’ compensation related injuries
60% decrease in unproductive HR administration

Please select a service area below to learn more about PEO and HR Outsourcing:

California Operations

If you are a California-based business, you face unique employment challenges. Click here to find out how your company can benefit from CPEhr's personalized California Human Resources Outsourcing, and California PEO and Employee Leasing services.

Contact CPEhr today at 800-850-7133 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it to learn how HR and Professional Employer Outsourcing can help your business excel.

As a small company we have to be conscious of our overhead and limited resources. From payroll processes and employee handbooks, to HR practices and shopping benefits, CPEhr saves us tremendous time and money.

Founder / President,
Advertising Agency

About HR Outsourcing

Human Resources Consulting, Outsourcing, Professional Employer Organizations (PEOs) and Employee Leasing firms are all becoming increasingly popular in today's complex business environment. In states where labor laws are particularly complex, such as California, this HR Outsourcing trend is even more pronounced.

Outsourcing is the practice of using an outside specialist to handle work that is normally performed by in-house staff and resources. It is common for small business to outsource their payroll processing, accounting, facilities management and many other important functions — often because they have no other choice. Many large companies turn to outsourcing to cut costs. In response, entire industries have evolved to serve company's outsourcing needs.

Benefits of HR Outsourcing

There are many benefits to California human resource consulting and outsourcing. California Human Resources Outsourcing, Employee Leasing, HR Consulting and PEOs have become a popular trend for small businesses looking for an ROI on their HR function. This is accomplished by allowing companies to shift responsibility of nonessential jobs that can be handled easily by off-site experts in the area of payroll, benefits, and other complex workplace regulations. Reasons for California HR Outsourcing include: reducing litigation risks, improving compliance, improving accuracy, taking advantage of technological advances, and offering additional benefits.

Los Angeles Human Resources consulting and outsourcing firm CPEhr is at the forefront of the local HR consulting market. It is apparent that many organizations today are making the decision to outsource, and it is crucial to partner with a California Human Resources consulting firm to ensure your compliance. In today's global marketplace outsourcing has made itself accessible to many organizations on a National and International level. Outsourcing is successful in increasing product quality and/or substantially lowering firm and consumer costs (e.g., increases the quality to cost ratio). Because outsourcing allows for lower costs, even if quality reduces slightly or not at all, productivity increases, which ultimately leads to increased corporate revenues.

About PEOs and Employee Leasing

Professional Employer Organizations (PEO) and Employee Leasing Companies

A Professional Employer Organization, or PEO, also known as an Employee Leasing Firm, is a company that specializes in managing all the responsibilities relating to employees. From HR, payroll, workers’ compensation insurance and benefits, a PEO Employee Leasing Company becomes the legal employer of the worksite employees and becomes the Administrative Employer.

Particularly in California, where governmental regulations weigh heavily on California small business owners, more companies are turning to California employee leasing companies, California PEOs and California Professional Employer Organizations. A California Employee Leasing Company will legally hire a company's current employees, thereby making the PEO the "employer of record" for taxation and insurance purposes. The employees are then “leased” back to the client under a co-employment arrangement. The California PEO assumes responsibility for all payroll obligations and tax filings, workers’ compensation insurance, health benefits, as well as all the associated administrative paperwork.

Los Angeles Human Resources consulting and PEO firm CPEhr is at the forfront of the California PEO and Employee Leasing Companies industry. For small businesses, PEO and Employee Leasing is a more cost-effective means to access health care and other benefits for their employees. By contracting out all responsibilities related to its human resources policies and state laws, the company using the California PEOs offsets a great amount of employment risk.

The small business need for human resources makes California Employee Leasing Companies a perfect solution for small businesses. In fact, most employee leasing companies and PEOs target companies that have fewer than 100 employees.