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" ... Most small business owners are preoccupied with the first two. That is, they try to follow the rules to avoid fines and penalties (asset protection) and they shop around to get all the HR services they must have at the lowest possible price (expense management). Expenses such as outsourcing payroll, shopping for the best health plan at the lowest premium and making sure you have adequate workers’ compensation coverage. These are the transactional elements of HR that every business must contend with, but it’s the last two that have the biggest impact on a company’s long-term profitability. Cost containment strategies such as effective safety programs that lowers a company’s experience rating which over time, will reduce the company’s workers’ compensation cost. Or employee assistance programs and wellness plans that improve employee health and quality of life. Again, over time these have been proven to lower health insurance costs. Enhanced productivity initiatives such as HR systemization through technology and employee training and professional development. These are the strategies that really impact the business over time. ... "