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Check out our weekly blog posts and see the latest news and discussions happening in the HR world of business.

Want to Grow Profitability? Look at HR for Help

As a business owner, when you think about how you can make your company profitable, your first thoughts are increasing sales, cutting costs and managing unavoidable expenses. Chances are you don’t think of human resources unless you want to add or cut staff as part of this plan.

Human resource experts hold the power to be a significant driver of revenue in your business. An outside vendor, such as Abel HR, a Professional Employer Organization, can provide great insight into increasing profitability and strategic planning.

The first thing Abel HR brings to the table is relieving you of the transactional aspects of human resource—or no more messy paperwork to stress over—so you can focus on your top priority, growing your business. A PEO helps you work smarter, not harder, which means more money in your pocket.

How does HR help drive profit?


  • Abel HR has the power to launch a training program for managers that can help them to identify barriers for achieving efficiency and cost-savings in their individual departments.
  • HR should understand all the financial aspects of your business, including the overall budget, as well as what individual departments spend (and preferably on what). They should also understand how cash comes into the business – when are customers billed, when do they typically pay, how much goes to collections or is otherwise lost? When they have all the data, they can begin to see where changes might be made to cut costs or boost returns.
  • Abel HR’s experts can serve as process consultants, reviewing various departments to identify barriers to improved efficiency (both in terms of time and cost). Outside eyes can usually see things you can’t or won’t.


  • Retention is key for cost savings. It’s expensive if you are losing staff as it is costly to find and onboard new employees, both in dollars and time. Abel HR’s expertise can help you get to the root of any retention problems you may have and then develop a strategy for change to encourage the talent you have to stay.
  • Replacing an employee in a mid-range position (earning between $30 – $50K) is 20 percent of their annual salary (so $6,000 to $10,000), according to a study by the Center for American Progress. However, if you’re replacing a highly educated company executive, that can cost more than double their annual salary, so an executive making $100,000 will cost you $213,000 to replace.
  • In addition to recruiting and hiring, Abel HR’s experts can assess your current staff and make recommendations for upskilling to help employees grow and develop, both professionally and personally. This will help them see a path for success within your company and feel like you are investing in them.
  • The best human resource leaders, particularly those that have been brought to the table for discussions on the future of the company, can not only predict your hiring needs but can also pinpoint the type of candidate that you’ll need to best balance the skills and personalities of the existing team. In anticipating these needs, you avoid having lingering job vacancies or lulls in rolling out new products or initiatives on account of low staffing.


  • Selecting and administering benefits is a big part of the HR managers function, but it’s also a key playing field for cost-cutting. Abel HR knows what benefits your employees want and need.
  • We are very proud of our benefits portfolio and work diligently every year to negotiate the best benefit offerings at the most competitive price. We offer an industry-leading 22 different health insurance plans, five dental plans, and one vision plan through UnitedHealthcare Oxford.
  • Are your employees using the benefits you offer to stay healthy? Do they understand everything you offer? Abel HR can come in an explain all the intricacies of the plan in a way that employees can understand. A healthy employee is a productive employee.
  • Abel HR’s benefits team runs the analytics to determine ROI on your benefits plan and can help guide your future benefits selections in terms of where you should focus your dollars and where you can make some cuts.
  • The best part? We can offer these benefits at a price that can’t be beaten by small business owners and we’ll work with you to customize the best possible plan for your employees.


  • Another seemingly necessary but futile cost that Abel HR will nip in the bud? Compliance. From employee data reporting, Affordable Care Act and safety, this includes making sure the forms are filled out, mailing them out (and back), filing them, and then keeping track of them for the required amount of time.
  • Payroll and time off management, which probably take up a good chunk of your time each week. Luckily, a PEO like ours has a whole team that can manage every aspect of your payroll, and our certified payroll processing even goes the extra step by getting it guaranteed by an outside accountant.
  • Are your employees classified correctly when it comes to worker’s comp insurance? If not, paying too much or not enough and getting a fine cut into your profitability.

Setting Goals 

  • When thinking about the future of your company, human resources should be a part of the goal-setting process, play a role in helping with employee development to meet those goals, and be ready to spring into action and rethink strategies should they fall short. In conclusion, human resources needs to be part of each team at every step in the way.

A call with one of our experts is the first step to assessing your human resource needs so we can develop a customized employee benefit management service solution that allows you to make the best possible choice for your business and employees. Email or call us at 800-400-1968.


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