ROI of HRO
TriNet studied eight clients who deployed TriNet for at least three years to quantify the bottom-line business impact and organizational effectiveness that our HR management solution brought to them.
All eight companies had in common a fast-paced high growth scenario with limited resources. The results showed an average 3-year NPV ROI of $707,000 or 394%, with a payback period of less than 3 months.
| Average Tangible Value Drivers: Reduced/Avoided Costs | Average Year 1 | Average 3-Year NPV |
| Savings from Reduced Cost of Benefits Premiums | $146,000 | $339,700 |
| Savings from Reduced Cost of Benefits Administration | $3,000 | $7,770 |
| Savings from Avoided Need to Hire/Add HR Staff | $86,800 | $250,700 |
| Savings from Reduced Payroll Processing Costs | $18,000 | $55,000 |
| Savings from Avoided Legal Fees | $5,000 | $13,360 |
| Savings from Reduced Undiscovered Payroll Error | $36,400 | $119,000 |
| Savings from Reduced HR Staff Data Entry Costs | $9,000 | $24,600 |
| Savings from Avoided Employee Communications | $7,500 | $18,500 |
| Savings from Avoided Cost of HRIS/HRMS Solutions | $29,400 | $29,300 |
| TOTAL AVERAGE TANGIBLE BENEFIT: | $341,000 | $857,900 |
ROI: |
$286,800 | $707,400 |
| Average Intangible Value | Average Year 1 | 3-Year Average |
| Improved Employee Productivity (hrs) | 1,256 | 4,909 |
| Improvement in Payroll Accuracy (%) | 75% | 75% |
| Reduction in Payroll Staff Time Spent on Resolving Errors (%) | 96% | 98% |
| Recovered Manager Time Spent on Payroll/Workforce Mgmt (hrs) | 100% | 89% |
| Hour Saved on HR Functions (per year) | 432 | 432 |
| Saving Due to Reduced Hours Spent on HR Functions ($) | $20,590 | $20,590 |
Upon aggregation and analysis of ROI interviews of eight customers with TriNet’s services, the results indicated that the economic value gained from TriNet implementation easily justified the initial cost and ongoing administrative fees. In addition, TriNet provided these organizations with the opportunity to focus on their business objectives while gaining access to HR best practices.
The fact that TriNet combines multiple HR functionalities under one umbrella is crucial not only to day-to-day operations; it also scales to company growth without adding high overhead costs associated with rapid hiring. The companies in the ROI study – all fast growth enterprises – were able to bring new hires on board quickly and efficiently, and support retention with world class benefits plans.
Read more about the results of the ROI Study.