The New Business Solution!
New for 2011!Employer Cost Expected To Rise Over 15%The cost of providing employment is going to rise significantly in the next two years according to many experts. PEO services can provide relief.
Primary drivers for these increases will be: -
Increased competition for qualified talent drives salaries up
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Employee benefits expectations are increasing
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Additional government compliance requires additional resources
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Rising cost of providing healthcare is rising
- Additional personnel will be required to manage the HR function
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Employee lawsuits expected to increase
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Cost of providing development and training programs rising
Overall, these realities are making the option of outsourcing HR to PEO services more viable, even for the smaller enterprise.
The concept of adding your employees to a larger pool of employees makes sense.
Pooling allows employers to take advantage of services and discounts available only to employers with more than 100,000 employees. The Professional Employer Organization (PEO) industry is ideally positioned to provide these economies to small and mid-sized employers. This PEO service industry segment is projected to grow in double digit revenue increases through 2012. Free PEO Services Buyers Guide
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Outsourcing - What You
Need to Know as You Evaluate Businesses nationwide have experienced the value of outsourcing to a
Professional Employer Organizations (PEO) because they provide:
Relief from the burden of employment administration.
A wide range of personnel management solutions through teams of knowledgeable professionals.
Improved employment practices, compliance and risk management to reduce liabilities.
Access to a robust employee benefits package, allowing clients to be competitive in the labor marketplace.
Assistance with programs and training that improve productivity and profitability.
What A PEO
Service Is Not While some business professionals often confuse the employee management industry with the temporary help or staffing industry, distinctions do exist.
Why These
PEO Services Exist
The competitive advantage of employee management over most other providers of human resource services is based on
bundling the entire package of employment-related services and
fortune 500 benefits, by acting as a one-stop-shop for human resource needs.
The Bottom Line
The expanding burden of an employer in the U.S. economy has diverted an increasingly large share of businesses' time and resources away from the operational and strategic profitability of their business.
Management's theories and techniques have centered on issues like "core competency" (focusing on what their actual business is). In response to these cross pressures, firms have latched onto the concept of
employee leasing which enables them to hand over many of the legal responsibilities associated with being an employer to the PEO.
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