How Does Human Resource Outsourcing Affect the U.S. Economy?
How Does Human Resource Outsourcing Affect the U.S. Economy?Human resource outsourcing reduces the fixed cost of managing employees. The recession has only increased the rate of human resource outsourcing. Find out how human resource outsourcing affects the U.S. economy, and what can be done about it.Answer: Human resource outsourcing reduces costs by pooling thousands of businesses. This lowers the price of health benefit plans, retirement plans, workers’ compensation insurance, and legal expertise. Human resource outsourcing firms are more efficient as the talent and infrastructure is already in place. When a small business hires the human resource outsourcing firm, it gives them access to programs at reduced rates and a minimal time investment. Human resource outsourcing particularly benefits small businesses by offering a wider range of benefits, including: • Health insurance options, such as HMOs, PPOs and HSAs (Health Savings Accounts). • Dental, Vision, and Health Insurance plan
