by David Schek | Sep 24, 2013 | News, Professional Employer Organization (PEO), Staffing Company
At the recent national Professional Employer Organization (PEO) conference in San Antonio, 2 economists who have published their research in the Harvard Business Review (Laurie Bassi and Daniel McMurrer) presented their paper highlighting the benefits of using a PEO for small businesses. Since most staffing companies are small businesses, PEO’s make tremendous sense as a way to decrease back office and workers compensation expenses.
PEO’s allow you to operate very efficiently and maximize your limited resources to stay competitive.
Their study points out that small businesses that use a PEO have a 10% higher growth rate and experience 21% savings in back office expenses than other small business. The economists, Ms. Bassi and Mr. McMurrer, also indicate that 250,000 companies with 6 Million employees currently utilize a PEO in their businesses.
I encourage you to read this interesting article and then contact me for a FREE PEO quote at davidstaffing@gmail.com or www.StaffingCompSolutions.com.
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—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.
by David Schek | Sep 16, 2013 | Professional Employer Organization (PEO), Staffing Company
Did you miss Dave talking about Professional Employer Organizations last week? Here you go….
10. Fewer employee payroll questions or issues
9. Stop worrying about missing payroll checks.
8. Stop dealing with State workers compensation bureaucracies and audits.
7. Quit risking being under-insured – the PEO carries the Certificate of Insurance
6. No more personnel headaches with back office staff.
5. Your employees want benefits, and a PEO’s can provide them
4. ACA responsibilities are handled by the PEO.
3. Reduce professional liabilities – PEO is responsible for complying with employment laws
2. Save money – employer taxes, workers’ compensation, contributions to employee benefits, administrative costs, etc., are paid by the PEO
AND………………………
1. Spend more time on what you do best – selling more staffing business!
If you agree with Dave, then contact me at davidstaffing@gmail.com and I would be glad to talk to you more about PEO’s and give you a PEO quote.
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—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.
by David Schek | Sep 9, 2013 | News, Professional Employer Organization (PEO), Staffing Company
I recently read this very interesting article about how best to hire successful payroll and back office staff.
http://www.smartcompany.com.au/the-payroll-revolutionary/057289-the-seven-most-common-mistakes-when-hiring-payroll-staff.html
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While it offered some helpful tips on the hiring process, it further convinced me that it is a very difficult and time consuming task for most staffing owners given all their other responsibilities.
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As I can personally attest, operating a staffing company can be a juggling act from the time you start in the morning to the time you close your doors each evening. From dealing with challenging clients and temporary employees, the last thing most owners want to think about is hiring and managing dedicated support staff for their back office which tend to be fixed expenses.
By using a Professional Employer Organization (PEO) the headache of hiring and managing back office staff can largely be eliminated. If you are having difficulty in maintaining a quality back office staff, or they are simply getting too expensive along with your workers compensation insurance, let’s talk about how a PEO can make your life a lot easy and your business more profitable.
Please contact me at davidstaffing@gmail.com or visit us at StaffingCompSolutions.com for a FREE PEO quote. We specialize in helping staffing companies become more profitable.
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—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.
by David Schek | Aug 19, 2013 | Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
Besides the obvious answer that a Professional Employer Organization will usually offer lower rates, there are many other important differences. For example, your PEO is your business partner in helping your staffing business maintain safe operations, so it can offer lower rates than your competitors who use the State Fund.
Your PEO partnership is also unique in a few additional ways:
1. Your PEO will work with you on making sure you receive the lowest possible legitimate rates for your various job codes. Since the State knows it is usually the “last resort” for your workers compensation insurance, they really have no incentive to help you lower your rates.
2. Your PEO will work harder to investigate accidents and claims. The PEO has an economic incentive to only pay legitimate claims, since they do not want to lose you as a client (if your rates should increase from fraudulent claims ) and they are responsible as an insurer if your claims exceed your premiums. Conversely, the State Fund, knowing they are your insurer of last resort, has little incentive to investigate claims.
3. The State Funds staff are usually “9-5ers.” If you have workers compensation needs after hours, like receiving a rate for a new code, then you will have to wait until your request meets the States time table.
These are all reasons that if you are still using the State Funds for workers compensation insurance, you should get quoted with a Professional Employer Organization ASAP.
Contact Work Comp Staffing Solutions at davidstaffing@gmail.com and visit us at www.StaffingCompSolutions.com.
The quote is Free and like your future PEO, we are always available to help you.
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
Visit Work Comp Staffing Solutions at Booth 104 at the A. S. A. Orlando Conference
Work Comp Staffing Solutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.
by David Schek | Aug 7, 2013 | Consulting Services, Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
I receive many comments from staffing owners asking how to maintain their businesses gross profit when they receive significant workers compensation rate increases. Of course they can shop for a new policy with a Professional Employer Organization (PEO,) but for some, getting lower rates through a new policy just is not possible; especially if their experience mods are too high.
Here are my suggestions for maintaining your gross profit that worked well with my national staffing company, as well as with my current staffing consulting clients.
1. Explain and provide back up support to your clients about the hardened workers compensation market using some of the articles from Work Comp Staffing Solutionss previous blogs. https://StaffingCompSolutions.com/blog/
2. Negotiate increases with clients so they go into affect over a few months. For example on a code 9410, where your comp rate was 5 %, and is now 8 %, ask the client to accept a 3 point increase over 3-4 months instead of at one time.
3. Try not to make sudden rate increases with a client. Study which codes are most affecting your Gross Profit and negotiate with your client for those rates only. They will appreciate that you are willing not to raise rates across the board.
4. Communicate rate increases in person to your larger clients (or all your clients.) Buy your client lunch or coffee when chatting about this sensitive issue. Sending out template notices of rate increases can seem cold and usually alienates the client. Poor for relationship building!
5. As a last resort, be more creative with your temporaries pay in order to maintain margins, yet still get the same productivity. For example have a “starter” rate for new temporaries that may be .50 less than the “experience ” rate. This may help soften the impact to your total Gross Profit– depending on your turnover.
Remember to always be prospecting for new clients who may be more open to your new higher rates- especially if you can deliver superior service and value. Many of my staffing consulting clients use social media tools for this.
As we all know, the staffing industry is just getting its sea legs back after the rough economic storm called the Great Recession.
I have many more suggestions that I regularly share with my consulting clients to help their gross profits.
Please feel free to contact me at davidstaffing@gmail.com or visit our web site consulting page at https://StaffingCompSolutions.com/Work Comp Staffing Solutions-staffing-consulting-services/
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
Visit Work Comp Staffing Solutions at Booth 104 at the A. S. A. Orlando Conference
StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 20 Years.
by David Schek | Aug 6, 2013 | News, Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
Well it was only a matter of time before the two met. And the results are not great for staffing companies. Insurance companies are using complex analytics (aka Big Data) as a substitute for human judgement in the underwriting process. The insurance carriers believe big data will better screen for risky clients and improve their overall profitability.
Underwriters have for decades consulted detailed actuarial tables that have helped them serve as gate keepers for insurance companies. Specifically, there was to some degree an element of human involvement in this process — that could work in a staffing client’s favor.
The combination of the emergence of big data over the last few years, and the insurance industry experiencing under preforming investment portfolios, has resulted in insurance carriers changing their traditional underwriting methods. Now, they believe by removing the human element in the underwriting process, they will experience greater returns in their workers compensation portfolios.. Here is an article that explains this change.
http://www.businessinsurance.com/article/20130113/NEWS04/301139979
This may be one reason why staffing companies are turning more and more to Professional Employer Organizations ( or PEO’s ) to meet their workers compensation and back office needs. To be sure, PEO’s use insurance carriers like everyone else, but they usually are allowed to take on more risk because of their significant financial relationship with the carrier. In fact most PEO’s have millions of dollars in deposits with their carriers. Most staffing companies of course can not afford these types of deposits.
Let’s talk about how a PEO can help solve your workers compensation challenges. Contact me at davidstaffing@gmail.com and visit us at www.StaffingCompSolutions.com
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
Visit Work Comp Staffing Solutions at Booth 104 at the A. S. A. Orlando Conference
