Pricing

To Outsource Or Not To Outsource?

An all too familiar tale of charter schools…

Since the very first charter school emerged, school boards have faced the question of whether or not to outsource services. There are pros and cons to both options and typically, schools must navigate that decision based on the skills of their existing team.

Our custom model allows school leaders to decide exactly what services to outsource and what to keep in-house. When it comes to the bottom line, however, there are advantages of electing TES services over hiring an employee.

Let’s take the following example as a case study:

School YYZ needs Human Resources and Payroll Support. They serve about 800 students and employ 60 employees in Aurora, Colorado. They have two options:

Option 1) Hire a full-time HR Manager

• The average salary of an HR Manager in Aurora is $119K -per year (per Salary.com)

• Assume an extra 3% in employer taxes - $3,570

• Assume $7K per year in benefit costs

• Assume a $2K bonus opportunity

• Total cost of a full-time HR Manager = 131,650/year.

Option 2) Fully outsource the HR Department to TES

• For a full-scope package including direct support to employees, benefit administration, payroll administration, state/federal compliance, and documentation management TES would charge around $9,000/month. That is an annual cost to the school of $108K.

Electing services through TES would save the school $23K per year. Over the course of a 3-year agreement, that’s over $70K in savings back to the school (hello, finally remodeling that teachers lounge!)

Other Reasons to Outsource

1. No need to worry about staff turnover and training/retraining employees

2. Instead of just one employee, you get a whole team of professionals dedicated to solving your problems

3. Fewer employees means less employer liability