How to Track HR Outsourcing Costs

How to Track HR Outsourcing Costs in Your Business

For many small and mid-sized businesses (SMBs), HR outsourcing is a cost-effective way to handle payroll, compliance, and employee administration. To understand the value, you need a clear picture of how much HR outsourcing actually costs—both overall and per employee.

What types of external workers do small and mid-sized businesses commonly use?

• Independent contractor (official classification, “1099 worker”).
• Temporary worker / temp (through a staffing agency).
• HR outsourcing or PEO (Professional Employer Organization)

With Aptien, you can record and track all HR outsourcing expenses in one place, just like you track employee development or training costs.

Why track HR outsourcing costs?

• Transparency: Know exactly how much you pay for HR services each month or year.
• Budgeting & control: Plan spend across providers and avoid surprises.
• Per-employee view: See average cost per employee (common with PEO/HR services).
• Comparison: Evaluate outsourced HR vs. in-house HR.

What you can record

• Invoices from HR service providers (payroll company, HR consultant, PEO).
• Log the monthly per-employee fee
• Service fees (per-employee per month, flat monthly fee, hourly, project-based).
• Additional HR expenses (compliance audit, benefits administration, recruitment support).

How it works in Aptien

1. Log the cost: Enter each invoice or HR service fee into the Cost Table.
2. Assign it:
   • To a specific employee (if your provider charges per head), or
   • To the HR Services category (if it’s a flat fee or project).
3. Track over time: Add dates and descriptions so you can report costs by month, quarter, or year.
4. Get the big picture: Aptien shows total spend and average cost per employee.

Example use cases

• PEO / Payroll Provider: Log monthly per-employee fees → see total outsourcing cost by headcount.
• HR Consultant: Record invoice for specific projects (e.g., compliance audit, handbook update).
• Recruitment Agency: Track placement fees and link them to the new hire.

The result for your business

With Aptien, SMBs gain:

• A clear overview of HR outsourcing costs—no more scattered invoices.
• Insight into per-employee costs for easy benchmarking.
• Confidence to decide if outsourcing HR is more cost-effective than hiring in-house.

Bottom line: Aptien makes it simple to track HR outsourcing costs the same way you track training or equipment expenses—all in one central system, with both total cost and per-employee breakdowns available anytime.