A FORRESTER TOTAL ECONOMIC IMPACT STUDY The Total Economic ImpactTM Of The Insperity®HR360 Solution Cost Savings And Business Benefits Enabled By Insperity HR360 AUGUST 2025
“I think, in a nutshell, Insperity gives us a model that is high on the level of customer service and that we need to be functional and to keep our employees satisfied. The fact that they’re supporting our payroll and filing returns saves us time and resources.” — CFO, software
3 Key Findings Key Metrics The Insperity® HR360 solution is a full-service HR solution that enables people strategies for small and midsize businesses, helping them succeed as an employer of choice at every growth milestone. Insperity HR360 provides strategic HR guidance, administrative support, employee access to benefits, and HR technology infrastructure to empower leadership, productive employees, and efficient ways of working. Insperity is a US-based national network of HR professionals and designated as a certified professional employer organization by the IRS. $298.5K $212.1K $36.9K $49.6K $19.7K $46.4K $29.6K Time savings from Insperity HR support Cost savings from having Insperity provide employee benefits Improved time to new hire productivity Performance review efficiency Employee efficiency from using Insperity Improved HR compliance Cost savings from retiring legacy HR tools Financial Benefits (Three-Year) For A Composite Organization Source: “The Total Economic Impact Of The Insperity® HR360 Solution,” a commissioned study conducted by Forrester Consulting on behalf of Insperity, July 2025. ROI 77% BENEFITS PV $693K NPV $302K
4 Methodology Interviewees FINANCIAL MODEL FRAMEWORK Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees' organizations. COMPOSITE ORGANIZATIONS Designed a composite organization based on characteristics of the interviewees' organizations. INTERVIEWS Interviewed seven decisionmakers at organizations using Insperity HR360 to obtain data with respect to costs, benefits, and risks. Role Industry Number Of Employees EVP of operations Financial services 85 Chief operating officer Insurance 150 Chief financial officer Software 50 Chief executive officer Marketing 15 Chief executive officer Software 100 Financial controller Manufacturing 50 Chief financial officer Manufacturing 40
5 Total Financial Benefits For The Composite 43% 31% 5% 7% 3% 7% 4% Time savings from Insperity HR support Cost savings from having Insperity provide employee benefits Improved time to new hire productivity Performance review efficiency Employee efficiency from using Insperity Improved HR compliance Cost savings from retiring legacy HR tools $693K Three-year total benefits PV
Partnering with Insperity 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 to 1.5 of a full-time HR generalist resource’s time and 10% of an executive’s time. Prior to Insperity, interviewees at small businesses needed the equivalent of at least one full-time resource dedicated to managing payroll, employee benefits administration, and HR-related compliance as well as answering employee questions concerning policies, leaves, performance, etc. Most of the interviewees, including those in executive roles, such as the CEO, CFO, controller, or operations leader, had to wear multiple hats and took on some of these responsibilities, working in tandem with dedicated HR professionals. Reduction in an executive’s time spent on HR workflows 50% 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. 43% $298K Three-year benefit PV
“We have been able to take the agency to a much more professional level with the coemployment model with Insperity. I think that it’s been a lot easier to manage items. We now have team members on Insperity’s side that we can talk to when we run into hiccups in any way. … In a general, professional way, we’re light years ahead of where we were.” — CEO, marketing
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. Reducing employee benefits costs by 6%. 31% $212K Three-year benefit PV Reduction in benefit costs with Insperity 6%
“I cannot think of an example where we lost out on a potential new hire because of benefits. I don’t think we’ve ever had a situation where a prospective employee came back and said, ‘I’m choosing to work someplace else because they have better benefits.’” — CEO, software
Interviewees shared that prior to working with Insperity, onboarding new employees was a manual process, which required a lot of paperwork to be filled out by a new hire and processed by an HR specialist and/or by an executive who performed the HR function. In addition to this paperwork burden, it meant that the process could take days if not weeks, and a new employee had to wait to be added to payroll and covered by insurance before they could start in their new role. With Insperity, the onboarding process became digital and took a significantly shorter time, allowing new hires to be productive faster. Reduction in new hire onboarding time 80% Shortening the new hire onboarding time by 80%. 5% $40K Three-year benefit PV
“With Insperity, [an employee] comes onboard and we have a couple of things that we do on our end in the next 48 hours, but essentially, [on] day one they’re covered by insurance and we’re off to the races. It’s seamless for the employee.” — EVP of operations, financial services
Prior to Insperity, interviewees described how annual performance reviews were done manually. This required extensive effort from the managers to collect the necessary information about employee performance throughout the year, gather input from peers and clients (where appropriate), assess progress toward goals, and plan for next year. 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 managers with structured prompts and documentation tools. Reducing the annual performance review effort for managers by 75%. 7% $50K Three-year benefit PV Reduction in managers’ time dedicated to performance reviews 75%
“The manual side of a review process has been completely eliminated. And you can refer back to [the review] any time for years. You can see the score year over year. You can see the goal setting year over year. You can see the development plan. It’s just so easy to obtain that information and know where you are with that employee.” — EVP of operations, financial services
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. Productive time reclaimed annually per employee 3 hours Recovering up to 225 hours of productive time per year. 3% $20K Three-year benefit PV
“If all these different things that go on behind the scenes and directly affect the employee are running smoothly, and there’s less headaches and less issues for us from an HR point of view, the employees can be focused on doing their jobs and focused on things other than having issues with the payroll, their checks, and so on. And Insperity is doing that for us.” — CFO, software
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 it 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. With Insperity, companies acquire access to the HR-related expertise and support needed to enable their business growth and reduced the risk of noncompliance. Interviewees highlighted Insperity’s proactive compliance support, access to HR-related guidance, and the peace of mind that came from the assistance of a trusted advisor. Reducing the risk of HR noncompliance by 90% 7% $46K three-year benefit PV Reduction in risk of HRrelated noncompliance 90%
“Before Insperity, we didn’t have the right expertise, and we were just kind of winging it. So, Insperity really was a godsend for us to get a lot more organized and feel safe that we were making the right decisions.” — EVP of operations, financial services
Before partnering with Insperity, interviewees said their companies relied on basic payroll software tools, with all other HR functions handled through spreadsheets and word-processing software. Upon transitioning to Insperity, the composite organization gains access to a comprehensive HR platform and retires its standalone payroll solution. Annual cost savings in software license fees $10,000 Saving $30,000 from retiring legacy point solutions. 4% $30K three-year benefit PV
Qualitative Benefits Additional benefits that customers experienced but were not quantified include: Improving the employee experience and assisting in shaping organizational culture Empowering business growth Streamlining reporting and insights Enhancing talent recruitment and retention Developing employee skills Serving as a trusted partner
Appendix A: Total Economic Impact Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders. . Total Economic Impact Approach Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization. Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution. Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated. Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.” ! Present value (PV) The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows. Net present value (NPV) The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs. Return on investment (ROI) A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs. Discount rate The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%. The initial investment column contains costs incurred at “time 0” or at the beginning of month 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the eighteen-month period. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur. Payback period The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
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