While shelter companies help manufacturing businesses save money on labor, transportation and inventory management, as well as a number of other aspects of their operations, these alternative solutions also allow organizations to automate payments for benefits and not have to worry about payrolling. Offshoring to Mexico ensures that businesses don't have to hire employees to handle the great deal of processes to run a successful enterprise.
This is good news for many of today's CFOs who are constantly looking for opportunities to cut costs and allocate their funds to the important aspects of their organization. In addition, a new study from Prudential and CFO Research Services revealed finance leaders don't want to have to pay their employees pensions and benefits. Shelter companies could be just the solution CFOs are looking for to limit risks and manage costs.
Corporate finances are wearing thin
Employee benefit plans are costly to many businesses, and the amount of money they spend on these programs grows with the numbers of employees that have on staff. This is why it is a good idea for CFOs and finance leaders to look into shelter companies. Manufacturing costs can be high enough as companies have to deal with supplier relations and shipping. The fewer amount the number of staff members who are employed by the organization, the easier it will be to disperse employee benefits.
"The current economic environment, changing world of pensions and ever increasing cost of healthcare all continue to present challenges to companies providing employer-paid benefits," said James Gemus, senior vice president for group life and voluntary benefits, Prudential Group Insurance.
Benefits and pensions can cause headaches
Businesses are already taking the steps to relieve themselves from the costs associated with employee benefits and pension plans. The study found nearly six in 10 companies that participated said they have either frozen accruals for all participants or closed their defined benefit plans to new entrants, while many more firms are heading down that route. When partnering with shelter companies in Mexico, CFOs and their teams won't ahve to worry about how benefits will be paid off.
"These financial executives are worried about management attention being diverted from running the business to dealing with pension liabilities," said Margaret McDonald, senior vice president and actuary for pension risk transfer at Prudential Retirement.
CFOs can see significant savings with Mexico shelter
Partnering with a company across the border is an opportunity for finance leaders to save a substantial mount of money, not only on employees, but also on things like office space, warehousing and reduced risk. These money savings will allow them to position themselves to be more competitive with pricing for their goods and become a bigger player in their industry. This can be made possible all by trusting shelter companies in Mexico.