Solid mid-west PEO offering 11% off its rates:
http://smallbusinessadvocacycouncil.org/benefit/save-11-peo-services-including-payroll-hr-management-employee-benefits-workers%E2%80%99-comp-adminis
Tuesday, October 4, 2011
Which PEO is right for my company? Let's talk industry specifics.
Not every PEO is set up specifically for every business.
There are certain industries that have higher levels of compliance, think about the trucking and transportation industry. The level of human resources necessary is greater. Why? Well, for this industry, OSHA, Department of Transportation and Department of Labor all need to be kept informed of what every trucking company is doing, is hauling, who is driving, where are they going, where are they from...the list is long and daunting. As it should be. We don't want a nation of hopped-up, multi-ton 18-wheelers with HAZMAT loads tumbling down our countries freeways at 75+ MPH!
The point is, the HR outsourcing provider, or PEO, that takes on that risk will have to be well-versed and up-to-date with all of the latest federal and State laws regarding the hauling of goods.
The PEO's that focus on that industry are experts in this area. However, your local PEO, with a workforce of plumbers, electricians, construction and other blue-collar employees, will not. And vice-versa.
Then again, the PEO that is focused on high-tech, high-touch, employee-driven benefits packages is another niche.
There are certain industries that have higher levels of compliance, think about the trucking and transportation industry. The level of human resources necessary is greater. Why? Well, for this industry, OSHA, Department of Transportation and Department of Labor all need to be kept informed of what every trucking company is doing, is hauling, who is driving, where are they going, where are they from...the list is long and daunting. As it should be. We don't want a nation of hopped-up, multi-ton 18-wheelers with HAZMAT loads tumbling down our countries freeways at 75+ MPH!
The point is, the HR outsourcing provider, or PEO, that takes on that risk will have to be well-versed and up-to-date with all of the latest federal and State laws regarding the hauling of goods.
The PEO's that focus on that industry are experts in this area. However, your local PEO, with a workforce of plumbers, electricians, construction and other blue-collar employees, will not. And vice-versa.
Then again, the PEO that is focused on high-tech, high-touch, employee-driven benefits packages is another niche.
Saturday, September 17, 2011
'Tis the Season? The Shopping Season for PEO!
Right after Labor Day of each year, there is an influx of businesses looking for new ways of doing business in the next business year.
One of the main topics of discussion at a lot of companies and non-profit board rooms, is how to handle human resources, payroll, benefits, etc. Thus marks the season of gathering info, proposals, meeting with vendors, to determine the course of action for the next year (or multiple years) of a businesses life cycle.
The time could not be any better for those in the PEO (professional employer organization) industry. Due to the nature of the PEO relationship or co-employment, January 1 of any new year is very important so that businesses are paying federal and state unemployment taxes under the FEIN that they plan to pay for the entire year. Granted, there may be enough savings on benefits and workers compensation insurance for companies to consider changing tax identification numbers mid-year, but the cleanliness and clarity of January 1 makes life a lot simpler for a lot of businesses.
So, through the Fall and into December, companies are gathering data on potential partners for the human resources. Here's to the Silly Season for PEO.
One of the main topics of discussion at a lot of companies and non-profit board rooms, is how to handle human resources, payroll, benefits, etc. Thus marks the season of gathering info, proposals, meeting with vendors, to determine the course of action for the next year (or multiple years) of a businesses life cycle.
The time could not be any better for those in the PEO (professional employer organization) industry. Due to the nature of the PEO relationship or co-employment, January 1 of any new year is very important so that businesses are paying federal and state unemployment taxes under the FEIN that they plan to pay for the entire year. Granted, there may be enough savings on benefits and workers compensation insurance for companies to consider changing tax identification numbers mid-year, but the cleanliness and clarity of January 1 makes life a lot simpler for a lot of businesses.
So, through the Fall and into December, companies are gathering data on potential partners for the human resources. Here's to the Silly Season for PEO.
Friday, September 2, 2011
PEO - Professional Employer Organization: The Great Small Business Equalizer
To compete to retain employees, small business owners need a benefits plan that compares with a larger company.
In order to do that cost effectively, small, and even mid-sized, businesses have been focusing on shared service opportunities like Professional Employer Organizations, or PEO. This model was originally called "employee leasing," however, in the past 20 years, industry leaders have gotten together to formalize a standard definition and operating procedure to be considered a true "PEO" or co-employer.
And the term, "co-employer" is the key to how the model works. By placing current employees under the tax identification of the PEO, the client companies receive immediate economies of scale in order to purchase benefits such as Major Medical, Dental, Vision, 401(k) and HR software.
Additionally, the PEO, as employer-of-record, is legally bound to do business in a manor that is labor law compliant. So small businesses are instantly compliant, with a Fortune 500 benefits plan, and provided back-office support for payroll, benefits administration and risk management. Oftentimes, PEO will assist in recruiting as well.
Now, PEO is not the model for everyone, but with potential savings of up to $1,000 per employee per year, it is worth investigating to see if it fits.
In order to do that cost effectively, small, and even mid-sized, businesses have been focusing on shared service opportunities like Professional Employer Organizations, or PEO. This model was originally called "employee leasing," however, in the past 20 years, industry leaders have gotten together to formalize a standard definition and operating procedure to be considered a true "PEO" or co-employer.
And the term, "co-employer" is the key to how the model works. By placing current employees under the tax identification of the PEO, the client companies receive immediate economies of scale in order to purchase benefits such as Major Medical, Dental, Vision, 401(k) and HR software.
Additionally, the PEO, as employer-of-record, is legally bound to do business in a manor that is labor law compliant. So small businesses are instantly compliant, with a Fortune 500 benefits plan, and provided back-office support for payroll, benefits administration and risk management. Oftentimes, PEO will assist in recruiting as well.
Now, PEO is not the model for everyone, but with potential savings of up to $1,000 per employee per year, it is worth investigating to see if it fits.
Wednesday, August 31, 2011
What is the best PEO?
There is no one solution. Every company's needs are different and there is a PEO, or professional employr organization, that fits just about every industry.
Some PEO's are stronger in terms of benefits, others have industry niches that they can parlay into a dominant position in the market.
For instance, there are a handful of PEO's that work only with transportation and trucking companies. Due to the variant needs of this industry and the additional compliance issues that small trucking companies face. A PEO saves their clients thousands in reporting costs and potential fines or worse.
Some PEO's are stronger in terms of benefits, others have industry niches that they can parlay into a dominant position in the market.
For instance, there are a handful of PEO's that work only with transportation and trucking companies. Due to the variant needs of this industry and the additional compliance issues that small trucking companies face. A PEO saves their clients thousands in reporting costs and potential fines or worse.
Tuesday, August 30, 2011
History Lesson on PEO and Employee Leasing
Here are the Wikipedia definitions of PEO (professional employer organization) and Employee Leasing.
http://en.wikipedia.org/wiki/Professional_employer_organization
http://en.wikipedia.org/wiki/Employee_leasing
Here is what Entrepreneur Magazine has to say:
http://www.entrepreneur.com/encyclopedia/term/82362.html
My definition? It is a business solution that allows small to mid-sized companies to compete with larger companies by offering shared expertise and services for human resources functions.
Where do you go to find a PEO? Start with NAPEO (http://www.napeo.org/) or PACE (http://www.pacepeo.org/). You should cross-reference with your own States Department of Labor, to be sure that the provider(s) you are considering are fully licensed. Or you can engage with a consulting or brokerage company such as National HR Companies (http://www.nationalhrcompanies.com/) or HROplus (http://www.hroplus.com/).
Subscribe to:
Posts (Atom)