Many staffing companies simply think of PEO’s (Professional Employer Organizations) as payroll firms that offer lower cost workers compensation programs. But in addition to this benefit, PEO’s can provide lower unemployment rates too. PEO’s serve as the “employer of record” to thousands of long term permanent employees, (not just short term- temporaries,) and as a result their unemployment rates tend be lower than their staffing clients in most states. Keep in mind that the PEO industry is about a 80B a year industry.
As states continue to raise unemployment rates in 2012 and beyond to balance their budgets, you may see your bottom line severely reduced by these higher rates. Because PEO’s can offer programs that keep your workers compensation as well as your unemployment rates low, they may be a useful option to consider in reducing your overall payroll expenses. Many PEO’s provide all payroll management and human resource administration for about 2-3% cost of your payroll– which is usually more than offset by lower comp and unemployment rates.
If you do consider the PEO option please be sure you select a PEO that has been in business for at least 5 years and has a proven track record of working with staffing companies. You will be assured of receiving the best service with these firms.
Please contact me if you would like to discuss obtaining a PEO quote for your staffing business, or to discuss most other types of workers compensation programs like ASO, Captive or Direct for your staffing business
All the best
David Schek
202-302-1212
www.StaffingCompSolutions.com