In today’s rapidly evolving business landscape, organizations are navigating a perfect storm of challenges, from shifting HR-related laws and rising employee expectations to the growing complexity of managing remote employees and integrating new technologies like AI.¹ Small and midsize businesses often lack the expertise necessary to overcome these challenges. Insperity provides expert HR guidance, supports compliance, helps enhance the employee experience, and empowers business leaders to focus on what matters most: building resilient and successful organizations.

Insperity commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) businesses may realize by onboarding to Insperity HR360.² The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of partnering with Insperity on their organizations.

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed seven decision-makers at organizations who are Insperity clients using the Insperity HR360 solution. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization.composite organization

Interviewees said that prior to working with Insperity, their organizations did not have dedicated HR staff. In many cases, an executive, such as a CEO or CFO, and a person with little or no HR background were responsible for managing payroll, benefits, HR policies, and employee needs to the best of their ability, using spreadsheets, disparate vendors, and point solutions. Rising healthcare costs made it difficult for these small and midsize businesses to offer competitive benefits to new hires and existing employees, putting hiring and retention at risk. As the interviewees’ organizations expanded into multiple states, they struggled with complex and varying HR-related laws, which increased the risk of noncompliance.

After the investment in Insperity, the interviewees achieved significant operational efficiencies for the executives and full-time employees (FTEs) who previously took on HR responsibilities, allowing them to bring attention back to their original business goals and functions. The Insperity-sponsored benefits offered to employees of the interviewees’ companies made the benefit package appealing for existing employees and potential new hires alike. In addition, Insperity’s knowledge of employment-related laws and HR best practices helped organizations make better decisions to reduce their risk of noncompliance. Interviewees shared that, over the years, Insperity helped them build a solid foundation for business growth and enhance the employee experience. For many interviewees, Insperity became a trusted partner aligned with their organization’s culture and goals.

Quantified financial benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:

• Bringing up to 1.5 of a full-time HR generalist resource’s time and 10% of an executive’s time back to core business needs. For a composite organization, partnering with Insperity significantly reduces the internal burden of HR management by supporting payroll and HR-related compliance. In addition, having Insperity provide employee benefits under Insperity-sponsored plans eliminated benefits-related responsibilities, freeing up considerable time. Prior to Insperity, the composite organization requires at least one full-time employee to manage HR tasks. Additionally, an executive, such as a CEO, CFO, controller, or operations leader, spends up to 20% of their time on HR-related duties. With Insperity, the composite reduces the load on a professional performing HR tasks, while the time the executive spends on HR management is cut in half, allowing them to focus on strategic business needs.

• Reducing employee benefits costs by 6%. With Insperity HR360, the responsibility for providing employees with benefits shifts to Insperity, as the co-employer. Insperity’s benefit costs are allocated to each client as a component of the client’s comprehensive service fee. Prior to Insperity, the composite organization pays $2,000 per employee per month through a broker; it can no longer afford an attractive benefit package as it grows from 45 to 75 employees. With Insperity, the allocated benefit costs are estimated to be 6% lower than the composite is paying through the broker, and employees receive equal or better coverage. This shift enhances the composite organization’s ability to attract and retain talent, turning healthcare benefits into a strategic recruiting asset rather than a financial burden.

• Shortening the new hire onboarding time by 80%. Before partnering with Insperity, the composite organization faces a slow, manual onboarding process that takes up to five days per new hire and leads to delayed productivity. After transitioning to Insperity’s digital onboarding solution, the onboarding time at the composite organization is reduced by 80%, accelerating the time to employee productivity.

• Reducing the annual performance review effort for managers by 75%. For the composite organization, conducting annual performance reviews manually requires managers to spend two full working days per employee. With Insperity HR360, the time required per review is reduced by 75%. Insperity not only streamlines the review process but also improves goal tracking and development planning, benefiting new managers in particular with structured prompts and documentation tools.

• Recovering up to 225 hours of productive time per year. Before Insperity, employees at the composite organization have no centralized way to access HR documents or get timely answers to benefits, leave, or policy questions. They have to rely on contacting executives, doing their own research, or reaching out to outside sources and agencies, which leads to delays and disruption to their daily work. With Insperity, employees have access to a self-service portal and a contact center, which together enable them to resolve issues accurately, quickly, and often independently. This shift saves each employee an average of 30 minutes per month.

• Reducing the risk of HR noncompliance by 90%. Prior to working with Insperity, the organization does not have dedicated resources knowledgeable in HR-related laws or changing regulations and struggles to keep up with HR compliance requirements, especially as the composite grows and employs people in multiple states. The cost of HR-related noncompliance includes expenses that can significantly impact a business, such as government fines, legal fees, settlements, and back pay owed to employees. Indirect costs can be incurred through business disruptions, such as increased employment practices liability insurance premiums, the expense of correcting compliance failures, and the time spent on audits or investigations. Noncompliance can lead to reputational damage, resulting in reduced employee morale, higher turnover, and difficulty attracting talent. By leveraging Insperity’s HR expertise, the composite organization reduces its risk of noncompliance by 90%, avoiding potential fees and payouts.

• Cost savings of $30,000 from retiring legacy point solutions. Before partnering with Insperity, the composite organization relies on a basic payroll software tool, with all other HR functions handled through spreadsheets and word-processing software. Upon transitioning to Insperity, the organization gains access to a comprehensive HR platform and retires its standalone payroll solution.

Qualitative benefits. Benefits that provide value for the composite organization but are not quantified for this study include:

• Empowering growth. Insperity provides the HR infrastructure, tools, and expert support that enable the composite organization to scale confidently. This operational ease allows leadership to stay focused on strategic priorities and business growth.

• Enhancing talent recruitment and retention. Insperity offers employees of its Insperity HR360 clients comprehensive benefits that serve as a competitive advantage in the hiring market. According to interviewees, new candidates consistently respond positively to the available benefits packages, while for existing employees, benefits often serve as a consideration in favor of staying with their current employer.

• Developing employee skills. Through Insperity HR360, the composite organization gains access to the learning platform and strategic services that support both compliance and employees’ professional development. Managers can assign and track the completion of mandatory trainings like harassment prevention or security and be strategic about building a more capable workforce by providing leadership, skill-based, or communication training through Insperity.

• Streamlining reporting and insights. Insperity’s reporting and analytics tools give the composite organization visibility into key HR metrics, such as workforce demographics, compensation benchmarks, and compliance status. These insights support informed decision-making during performance reviews or role creation and help executives feel prepared for regulatory reporting.

• Improving the employee experience. Employees at the composite benefit from a reliable and accessible HR support system, including direct access to HR specialists and a self-service platform for managing pay documents, benefits, and time off. This consistent support leads to higher employee satisfaction and a reduction in HR-related complaints.

• Serving as a trusted partner. Insperity acts as a true partner, taking the time to get to know the composite’s business, offering reliable support and thoughtful guidance tailored to the company’s culture and leadership style, and earning the trust of employees and leaders alike.

• Assisting in shaping organizational culture. Insperity plays a pivotal role in helping the composite organization shape and sustain their company culture by providing structure, accountability, and actionable insights. Insperity’s tools and guidance enable company leaders to formalize cultural initiatives, communicate them effectively across teams, and track progress.

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

• Three-year fee for Insperity totaling $344,000. Insperity fees are based on a number of factors, including but not limited to the client’s payroll amount and services provided pursuant to Insperity’s agreement with the client. The composite organization incurs a one-time onboarding fee of $15,000. As the organization grows from 45 to 75 employees, its fee in Year 1 is $93,000, followed by $127,000 in Year 2, and $164,000 in Year 3. Please note, this cost was calculated for the composite organization and should not be considered standard.

• Onboarding and ongoing management costs of $46,000. The composite organization completes its onboarding to Insperity in two months. Insperity provides a dedicated and knowledgeable team to guide the organization through the transition. During this period, an executive works with Insperity to set up major HR workflows, including payroll and compliance. Post-onboarding, the relationship is easy to manage: The executive participates in regular check-ins, and an internal HR resource dedicates about 5% of their time to ongoing collaboration. This streamlined engagement model allows the organization to stay aligned on HR initiatives while focusing on core business operations.

The financial analysis that is based on the interviews found that a composite organization experiences benefits of $693,000 over three years versus costs of $391,000, adding up to a net present value (NPV) of $302,000 and an ROI of 77%.