Professional Employer Organization
 

“I’m too small to use your services” …this is one of the most common responses we hear when we made first contact with the majority of our clients.

Little did they know that they couldn’t be further from the truth. Small companies are one of the biggest beneficiaries of Leased Employee situations. Professional Employer Organizations (PEOs) provide a great Return On Investment.

Why? …Take a look!

• Human Resources Expertise. Our clients get access to our highly experienced human resources staff, including human resources managers, risk managers, compliance managers, and benefits specialists. The end result is that business owners are once again able to “focus on growing the business.”

• Time Savings.
You thought we’d put “money” first, didn’t you? As a business, you can always make more money. Anyone that has ever ran a business knows that their greatest commodity is time…the one resource that can not be replaced. Many small and medium sized businesses struggle to survive in today’s fast-paced, competitive, and sometimes high-tech marketplace. These are the type of businesses that can benefit most from the value-added personnel management solutions that we provide.

By freeing up the time that management spends on human resources, we give back an opportunity to grow the company. Business owners and managers can shift attention away from human resource functions and again concentrate on business strategy and bottom-line success. Nationally, thousands of entrepreneurs are finding that PEOs provide a proven 'people strategy' that can turn obstacles into opportunities.

• Reduced Costs.
It is no secret that large corporations enjoy greater purchasing power than smaller companies. Small companies can be especially hard hit in the areas of employee health benefits and workers' compensation insurance. PEOs can help employers in reducing not only the number of claims but also the average claim cost. By accomplishing both of these goals, the employer will ultimately pay less premiums overall.

Through a simple cost analysis, a recent PEO client determined that by outsourcing he wouldn't have to spend any more on personnel costs, but would realize significant savings in labor – mainly the time he and his wife were spending on human resources.

As it turned out, his wife had been serving as the company's human resources person, spending as much as 90 percent of her time on personnel matters and benefits for their 17-employees. When they outsourced most of those HR duties, she switched to spending 90 percent of her time on marketing and 10 percent on human resources. He says, "That change itself is worth it and brought huge returns. The increase on business volume has made all the difference in the world for my small business!"

A growing number of small and mid-size businesses are finding that besides making their lives easier and helping their companies run better, contracting with a professional employer organization can save money in both the short-term and long-term.

• Improved Regulatory Compliance. According to the Small Business Administration, small businesses carry a heavier regulatory burden than large companies. Small companies employ about 53% of the workforce but shoulder 63% of the total business regulatory costs. We help a companies improve their government compliance, reduce or eliminate fines and penalties, and enhance their work environment.

It’s not just the SBA…the Department of Labor says it would cost the average business one-third to two-thirds more to provide the administrative services a PEO can supply. Because of our expertise, we are able to manage your workers’ compensation and unemployment claims as well as cut through the myriad of laws that are passed every year at both federal and state levels.

• Increased Employee Retention. Engaging a PEO allows you to become an employer of choice with Fortune 500® type of benefits. Most of our PEO clients are small to medium size businesses. We offer these clients (and worksite employees) services that can normally be found on in a human resources department of a large corporation. Few small businesses can afford a full-time staff that handles responsibilities such as payroll processing, benefits management, human resources, and risk management. We do all of that and do it affordably. Remember our motto? “It’s about helping people!” With this in mind, we provide HR advice to clients, including employee retention strategies that leave them better situated to beat out their competition when attracting and retaining talented employees.

• Enhanced Employee Benefits. Because of the large numbers of employees in our pool, we are able to offer a much wider selection of benefits than most small businesses can secure on their own, and often at a considerably lower cost. Our rates reflect the savings that we pass through to our clients and worksite employees. Overall, our enjoy the economies of scale usually reserved for only the largest employers.

As a general rule, we offer worksite employees more and better benefits than they likely would receive from the typical small business. The cost for an individual small business to establish and administer dental, medical, vision, life insurance, employee assistance programs and other special human resource initiatives is usually prohibitive without our assistance. Every small business owner has long known that large companies have the muscle to squeeze low prices out of the insurance companies at the expense of the “little guy”. Not any longer, as a PEO client, you join a strong group that has the muscle to squeeze as well.

No longer do you have to go it alone…you have Career Management Associates by your side.

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