Here is an article from Inc. Magazine from last week. Let’s hope that Obama can get somewhere with this as legitimate companies get undersold on their services every day by what I call “pirate” companies that don’t pay taxes, don’t have workers comp, and use poor labor practices in order to win business.
Check out the link below for a very good article on PEO, professional employer organization. Sometimes referred to as employee leasing, but there are some differences in the models of hr outsourcing.
Some good quotes from NAPEO (National Association of PEO) as well.
I am waiting to see the first case of a workers comp carrier denying coverage of a claim because an employee was doing something illegal…aka driving while texting…during the course of work. I wonder how a PEO will handle this?
I have found another good posting on the basics of PEO and HR outsourcing.
Here is the link:
“Instead of doing your own payroll in-house, consider a PEO (Professional Employer Organization) to take over the administrative and legal responsibilities of managing your employees. You are not selling your employees to someone else- you are just using their service to help your small business save money while offering your staff better benefits to boot! This means, no inside human resource personnel costs, reduced legal liability for your company and better benefits packages for your staff. Look to a professional employer organization to help you save money.”
For the full article…
…and yet it is nothing.
For a company to consider some HR outsourcing solutions, such as PEO (professional employer organization) or ASO (administrative services organization), there is often a breakdown within the organization from a human resources or benefits cost or risk management standpoint.
The right HR outsourcing solution can help a company weather these storms, or avoid them all together. There is often a cost, of course, but it is cheaper before than after the storm has hit.
I speak to owners of small companies all day long…the question they most want to ask, but have a hard time getting the gumption to ask is…”How much is this going to cost…and how will this save me money?” When considering HR outsourcing, it is prudent to know what your current HR costs are so you can make a rational comparison versus “doing it yourself.” The quick and easy answer, from an HR professionals’ prospective, is an average of 20% on top of gross pay. If you want to add a medical plan and pay 100% of the premium of the employee…adds another 3 – 5%.
So many models…so little time.
Which is best for my company? Should I go PEO? What is PEO? How about an ASO?
HROplus’ mission is to assist small and medium-sized companies figure out the best overall model for HR outsourcing. And we mean outsourcing, not offshoring. Big difference.
We’ll get more technical in upcoming blogs and try to answer questions on each model. PEO, which stands for professional employer organization.
ASO, administrative service organization
HRIS or HRMS, software for human resources functionality
We are always searching for newer and better solutions to human resources, so drop us a line and we’ll discuss.
Kristian, Jeff and Tom