If we compare the costs of having an internal payroll and HR administration department with the costs for outsourcing these services we have a clear image regarding the value for money brought by the outsourcing option in terms of cost reduction.
For example if we look at a company with 100 employees and compare the costs of having an internal payroll and HR administration department with the costs for outsourcing these services:
- Internal payroll and HR administration department
Cost estimate: 1450 EUR/month
- Direct costs with HR staff medium salaries/month: 1300 EUR/person (gross salary)
- Monthly indirect costs 110 EUR / person
Business telephone – 30 EUR
Meal vouchers – 50 EUR
Consumables – 10 EUR
Business travel -15 EUR
- Yearly indirect costs 200 EUR / person
Easter / Christmas gifts – 100 EUR
Training costs – 100 EUR
To those costs we can add the HR software maintenance costs of 50 EUR/month.
- OMHR CONCEPT Outsourcing services.
Cost estimate: from 750 EUR/month
This monthly tax includes the following services: timely and accurate calculation of employee payroll transactions (salaries, tax and social contributions) while observing current legislation, preparation of monthly payroll statements in maximum 1 day upon client information submission, production of standard internal and external reports according to the client service contract as well as to IT maintenance costs.
This example of a 100 employee company clearly shows the cost reduction with payroll and HR administration which occurs when a company chooses the outsourcing solution over having an internal department hired to deal with these services.
The outsourcing of services is agreed through a contract with a fee which will stay unmodified over at least a year. Also, quite importantly, the costs regarding the outsourcing of services are entirely deductible.
If we compare having an internal department over outsourcing the payroll and HR administration services one can easily notice the significant cost reduction for the companies which choose to outsource these services to OHMR CONCEPT.
There is an approximate 50% cost reduction, a significant number for any company.