by David Schek | Dec 10, 2012 | Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Research offers more proof older workers don’t drain comp coffers
A recent NCCI study debunks the myth that older workers cause more workers compensation claims, and thus are more costly and less productive employees.
As temporary staffing becomes an increasingly significant part of the US work force, and older workers become a more significant part of the temporary work force, this is a very positive trend for all of us.
For more details (and a few more surprises) please read the article/ link below.
http://www.riskandinsurance.com/story.jsp?storyId=533352866
And as you begin to think about the New Year, please remember that Work Comp Staffing Solutions works hard to connect you with the lowest cost and the highest quality PEOs. In fact one of our PEO’s offers guaranteed cost programs through Zurich!
Contact us at 202-302-1212 for a work comp quote. We can tell you how a PEO will afford you lower workers compensation rates, and help you manage your Affordable Care Act administrative expenses.
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 | Dec 4, 2012 | Healthcare Insurance, Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Five reasons to partner with a PEO for work comp
This is a great question that I hear a lot from staffing companies lately. Here are a few reasons that this could be happening to you:
- Insurance carriers are dropping their staffing business clients, and other carriers that are still willing to write staffing companies are raising rates because there is less competition for your business.
- NCCI has changed the methodology that they calculate mod rates effective January 1, 2013. Insurance companies are anticipating this change. Staffing companies with mods above 1.0 will see increases as a result of this new NCCI mod calculation.
- Insurance companies do not see staffing companies as a good risk any more, especially if your premium is not at least 100K a year. Just as you may decide that certain types of clients are too risky from a service or payment perspective, many carriers have come to this realization about staffing companies with respect to risk profiles.
- You may also find that to continue with your current rates you need to pay the carrier a deposit or have a deductible in your policy; which you did not have to do have before. For the carrier this is a way to minimize risk and maintain profits.
- Over all medical costs have increased resulting from accidents in most industries affecting rates. Carriers are nervous about costs resulting from Obamacare/ ACA.
One of the options that more staffing companies are asking about in order to keep their work comp rates low is to partner with a Professional Employers Organization or PEO. A PEO has a portfolio of client companies – not just staffing (sort of like a captive.) So if you do not have a perfect NCCI mod or loss history, you can still find affordable work comp.
Below is a good article that explains how larger companies join captives to control rates increases, which is the same type of risk transfer you can achieve by partnering with a PEO.
http://www.propertycasualty360.com/2012/07/18/companies-turning-to-captives-to-ease-rising-worke?t=captives
Please give us a call at 202-302-1212 and we will be glad to provide a PEO quote for your workers compensation coverage.
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 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 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
