International Publishing Company of America reduced administrative costs and improved health care benefits for employees by transferring all its human resources functions to a specialized agency. Transferring permanent, in-house employees reduced expenditures for payroll deductions including worker's compensation by 3.5 percentage points. Management can still do all hiring of employees under the arrangement and can have an employee removed if dissatisfied.
The burden of managing employee-related affairs in the face of sharply increasing costs and the mounting tide of government reg
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