by David Schek | Nov 27, 2012 | Healthcare Insurance, News, Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
Another Good Reason To Consider Partnering with a PEO
Successful staffing company owners have always been able to adjust their business models to continue to make a profit. With the new Healthcare laws starting in earnest in 12 months, our industry will have a new set of challenges and opportunities!
The article below from Staffing Industry Review discusses these challenges and opportunities and is well worth a read.
http://www.staffingindustry.com/Research-Publications/Publications/Staffing-Industry-Review/September-2012/2014
In terms of workers compensation costs, it is quite possible that long term costs will be going down because workers will not be using the workers compensation system to take care of basic health needs which happens now to some degree. Also as workers become healthier and more knowledgeable about ways to maintain good health, workers compensation accidents should become less frequent.
A second positive trend resulting from the new law is an opportunity for you to become your clients “expert” on these new healthcare laws so that everyone’s labor costs are kept to minimum. To be sure, there will be a level of complexity to these regulations that is unprecedented; but with a Professional Employer Organization (PEO) as your human resource – payroll and work comp partner, you will be able to help your clients better understand the new healthcare laws.
Please feel free to contact us for a workers compensation quote today and to find out about how Professional Employer Organizations (PEO’s) can improve your profits.
Happy Holidays.
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Nov 19, 2012 | Professional Employer Organization (PEO), Staffing Company
When an employee makes a workers compensation claim, they become a protected class of employee. As a “protected” employee, your management decisions affecting that employee will be potentially put under a legal microscope by their representatives. PEO’s have lawyers and human resource experts on staff that will advise you as to how best to handle these situations. As the PEO’s client, their goal is to protect you from lawsuits and management hassles
That is not to say that these employees can not be disciplined or even fired. But since the PEO’s specialize in knowing all the employment laws and regulations, they will guide you in ways to exercise your rights as an employer and minimize any confrontation from the employees legal representatives. Otherwise your staffing company can become a target to law suits from the employee’s attorneys.
This a a big reason why using a Professional Employers Organization (PEO) can save you money and aggravation in your staffing operation. PEO’s have staff attorneys to help guide you thorough this possible legal morass. Also your PEO’s human resource team can be a marketing advantage with your clients, since they are looking out for your clients interest as well, should a workers compensation accident become a legal issue.
Below is a article which describes the best practices in managing employees who have made a workers compensation claim and how to avoid pitfalls that can arise while managing them.
Workers’ compensation: When can employer terminate a worker with a claim?
I hope you find value in this article and will call Work Comp Staffing Solutions to find out about additional PEO benefits when you make a PEO a partner in solving your workers compensation challenges.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Nov 12, 2012 | News, Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
Work Comp Staffing Solutions has succeeded in becoming the premier PEO/workers compensation consultant, exclusively servicing the staffing industry. After I sold my national staffing business where I used PEO services extensively throughout the country with my 60 offices, I wanted to share my great PEO experiences with other staffing company owners. Bottom line– I wanted to help my industry friends save money.
We started Work Comp Staffing Solutions in November of 2007. In the last 5 years, Work Comp Staffing Solutions has serviced nearly 30 staffing clients, totaling about 40M in annual payroll– with the a 90% retention rate. Some clients have been start ups and some have been larger staffing companies with Millions in payroll. They all had a common problem before they called Work Comp Staffing Solutions… their workers compensation rates (usually from the State Funds) were driving them out of business and they needed a staffing/PEO professional who understood their unique challenges.
Thank you for all your support.
David
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Nov 5, 2012 | News, Staffing Company, Workers Comp, Workers' Compensation Insurance
As a former staffing company owner, I would look at my annual work comp rate increases and immediately think about my workers compensation claims and how they affected my rates. But rates reflect a combination of micro and macro events in our world.
To be sure, my firm’s safety record was very important; but the profitability of the entire insurance industry also impacted my workers compensation (as well as my other business insurance) rates.
For example, if the insurance industry finds that it is not making enough money for it’s investors, it may hike your premiums to increase returns for its shareholders — regardless of your particular work comp loss history. Or if significant natural disasters happen like Katrina, Irene, and now Sandy, where the industry has to make huge payouts to policy holders, you might find your rates increasing to cover these payouts.
Below is an excellent short article that discusses these issues. I recommend it and ask that we all begin to think about how Sandy (now expected to top 25B in insurance related losses) may affect rates for years to come.
http://www.propertycasualty360.com/2012/10/05/workers-comp-rates-climbing-but-more-rate-needed?t=workers-compensation
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
StaffingCompSolutions.com—- Work Comp Specialist
by David Schek | Oct 26, 2012 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Just like staffing companies, PEO’s (Professional Employer Organizations) are not created equal. In the United States there are over 700 PEO’s that manage about 90B of payroll. And while these numbers may give you the impression that there are many PEO’s with experience to partner with light industrial staffing companies, the reality is that there are only a small minority of these 700 PEO’s that have the experience, and are willing to work with light industrial staffing companies.
Here are the reasons why most PEO’s do not work with staffing companies–especially light industrial firms.
- The insurance carriers that underwrite PEO’s have moved away from underwriting staffing companies in the last 18 months because of the risk involved
- PEO’s find it more profitable to work with non staffing companies.
- The high turnover of employees (associated with staffing) increase internal costs for most PEO’s.
Not coincidentally these are all reasons that insurance carriers working directly in the staffing industry have become much more selective with the staffing firms they underwrite; and therefore forcing more staffing firms into the State insurance pools or funds. In turn, these State Pools have become the dumping ground of very high risk staffing firms, resulting in these Pools raising rates to all staffing companies. Effectively your rates will increase because you are “guilty by association” when you are in the State Fund or Pool.
This reduction in the number of PEO’s willing to service staffing companies over the last 18 months has unfortunately led to the increase of “phony” or fake PEO solutions in the market place. What I mean here is that some staffing companies will act as a PEO (to other staffing companies) and “share their work comp insurance policy” with another staffing firm without the carrier being aware of this inter staffing company arrangement.
This “piggy backing” scheme is essentially defrauding the insurance company (and the staffing company clients!) When the insurance company finds out this is happening (and they do find out) then claims are denied, and legal action may be taken by the insurance company against all staffing companies involved. Staffing firms may engage a piggy back staffing firm (versus a legitimate PEO) because the piggy back staffing firm’s rates may be very very low (sometimes as a result of misclassifying employees- hence another fraud) — and not realize the consequences of their action.
So how does a staffing firm find a legitimate PEO to work with? First, the staffing firm should use a seasoned PEO broker that has years of experience in dealing with PEO’s that service staffing firms, and has many clients that they can use as references. Second, a legitimate PEO relationship will allow the staffing company to have their name on the insurance “certs” to show the staffing firms clients. A piggy back relationship will not allow this– hence the fraud. Lastly, ask for a copy of the current insurance policy from the PEO– make sure it is from a good carrier and is current.
As a PEO broker for 6 years, a former client of a PEO for 10 years, and a staffing company owner for 16 years, I really enjoy matching staffing companies with the few choice PEO’s still servicing staffing companies.
Please feel free to contact me at 202-302-1212 to get a free PEO quote.
All the best
David
David Schek
President
david@StaffingCompSolutions.com
www.StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
StaffingCompSolutions.com—- Work Comp Specialist
