Human Resources Outsourcing Cost comparison

Despite the fact that many companies are thinking forward and outsourcing their products or services to 3rd party companies, many companies are still precious and bias about their structure and products.

If you are under-capacity, trying to cut operational cost or need an additional service offering but don't want to incur the expenses then outsourcing is the proven answer. more on outsourcing benefits

Problem		Solution
You have a small business with 20 or less staff and need HR services every second month - employing a full-time HR person is not financially viable.		ChilliHR can provided a comprehensive bi-monthly HR service at approx. R1500 / month, only billed on the months required, and only for the hours used. Use the web channels and get assistance for even less.
You have a staff count of less than 30 employees and need the occasional Professional HR advice.		ChilliHR provides an advisory service via phone and web channels - at approx. R300 / month, fractionally billed only when used - you could be spending as little as R50 / query depending on the nature of the query.
You have between 20 and 70 staff and need HR advice and counseling approx. 3 times / year.		ChilliHR can provide a sufficient consulting and representation service at approx. R8k / year
You have a total staff count of more than 1000 employees, and you are in process of expanding your HR department.		ChilliHR can supply supplementary HR services on a monthly basis at less 50% of the cost of 2 HR managers (strategists) - at approx R15k / month, or a full department outsourcing service at a reduced cost.
You are setting up shop and want to expand into the national market - you need a dedicated HR department, but do not want to incur the cost - you decided to outsource your HR department.		The cost of drafting the initial Process documentation could be approx R7k, thereafter the cost can be as little as approx. R2800 / month / 250 employees. Outsourcing your HR department as a whole could give you a 50% operational cost saving.

Bluewidgett Co. a 100 man operation soon monopolized the local market and the need for expansion was evident. They now faced the exciting challenges of expanding and growing their business, they had to acquire new technologies as well as expand their manpower with skilled staff.

Two years down the line Bluewidgett Co. landed their biggest contract ever and had to staff up again, now at a total staff count of 455 employees the need for a formal HR department was unavoidable.

The Head Accountant started the recruitment process to find suitable candidates for the various positions within this new Human Resources department, his total allocated budget of R50k was spread thinly as a Human Resources manager, 1HR Officer and 2 HR Clerks were needed, additional office resources and infrastructure was cutting deep into his budget.

Continual business growth and Human Resources cost appear to be synonymous, if only Bluewidgett Co. could find a way to cut cost on non-revenue generating departments, but since its HR department functions as an integral part of its operations, cutting costs here was simply no option...if only there was a simple way of minimizing the HR Operation Cost without losing its business function.

With ChilliHR Outsourcing, you can retain all HR functions without the cost of running an Inhouse Human Resources department, or extend your existing HR department by outsourcing only some of the functions, hence alleviating and facilitating your existing inhouse Human Resources department.

Direct cost comparison:
Your inhouse HR department		VS	ChilliHR outsourcing
Function	Cost		Function	Cost
HR manager	19k		HR Professional 1	0k
HR Officer 1	14k		HR Professional 2	0k
HR Clerk 2	12k
Office infrastructure	12k		ChilliHR retainer fee	35k
Recruitment expenses	10k		Recruitment fee	0k
Office resources	7k
HR staff on maternity leave	(not included in total) 20k		Emergency support	2k
	Total per month 74k			Total per month 37k
Once-off products also available

You could be cutting your Human Resources Operational Cost with 50%!