Quantifiably speaking, nothing. Franchises of any size do not gain any strategic advantage by serving as the sole employer of record, nor do we argue it is cost effective to absorb such cost (and risk) in-house.
- Pay wages + employer taxes + employer insurance + payroll processor + HR Software… for non-revenue generating work in-house? What does that cost your business each fiscal year compared to outsourcing it to our PEO?
It is fascinating how many franchises with the best of intentions still absorb such costs in-house and then come to The PEO for Franchises® with the need to cut labor cost afterwards. We recommend a conservative labor management approach through our PEO to avoid such excess.
With respect to revenue-generating work, we appreciate the argument of viewing employees as your greatest assets. Notwithstanding, with respect to non-revenue generating work, we also appreciate the argument of viewing employees as your greatest liabilities.
- Tell us the strategic advantage of serving as the sole employer of record, without the economies of scale of an aggregator. What do you accomplish?
- Growing franchises should outsource such non-revenue generating work to INFINITI HR.
- Growing franchises should allocate the annual aggregate cost of labor to our PEO for a service.
- Growing franchises should write-off such expense as one line-item in a general ledger – not employer taxes, not employer insurance, not even a wage – a “professional service.”