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PEO Market Penetration - 3% May be to High | PEO Blog

Thursday October 27, 2011

by Joe Caulfield

It is generally accepted that Professional Employer Organization - PEO market share is 3%.  Now we also hear the number 3 to 5% now and again, but that seems like a little bit of fudging.

Perhaps we should look at the actual number using census bureau data.  As of 2008 there were 2,203,513 companies that had employee counts from 5 to 99. I think most would agree that this covers the average size of a PEO client business.

Now if we took 3% of that total we would have 66,105.  Most have reported that PEO currently services 50,000 businesses, so what’s happened to the other 16,105? Oddly that can be answered by using a more realistic number on the “average size of a PEO client company” – that number is 14. That knocks out 526,307 businesses.  1,677,206 is a more real number.  Now we get 50,316.18

What is a PEO? |  PEO Blog

Wednesday October 26, 2011

What is a PEO? 

I have decided that I need push everyone in the Professional Employer Organization to started talking about the term PEO as it is defined by our industry.  And I will do this until we grow from the 3% market penetration we’ve been at for several years. 

Wikipedia has the following definition;  A professional employer organization (PEO) is a single source provider of integrated services which enable business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation and other strategic services, such as recruiting, risk/safety management, and training and development.  It does this by hiring a client company’s employees, thus becoming their employer of record for tax purposes and insurance purposes.  This practice is known as co-employment. 

Different PEO’s are different! | PEO Blog

Tuesday October 25, 2011

I would guess most of you are asking, what’s with the title “Different PEO’s are different”?  It’s a relatively simple statement – and yeah most everyone that’s part of the PEO Industry knows exactly what I mean, but a lot of prospects don’t have a clue, so my point is PEO’s are different.  I have a good friend of mine that’s a consultant in the PEO – Professional Employer Organization Industry that always says; when you’ve seen one PEO you’ve seen one PEO, she is 100% correct.

So what’s my point, why is this worth even publishing in a blog?  My point is, that PEO’s vary greatly, if you are a prospect looking for a PEO don’t think because you’ve used one PEO, that every other PEO is going to offer the same services that the PEO you’ve used offers.  Don’t assume that if you heard one PEO sales person mention a service that it automatically will be part of every other PEO’s offering.

The Four P’s of HRO and PEO Evaluation | PEO Blog

Monday October 24, 2011

All too often companies spend hours analyzing, assessing, and comparing the cost or savings that one HRO (Human Resource Outsourcing) or PEO (Professional Employer Organization) service provider offers versus another. While a detailed spreadsheet of costs may help to determine “hard dollar” expenditures, it very rarely accounts for the intrinsic value of the competing service models which is what HR directors and management is trying to compare.

When working with executives and consultants, very often items such as the co-pays of a health plan, workers compensation rates and administrative fees take precedence over far more important questions.  Are you teaming up with an outsourcing partner who is flexible enough to meet your demands? Will you have to conform to “their” way, and if so, when and how often? Is their expertise, services and strengths complimentary or duplicative? Is your corporate philosophy compatible? Only by completing a thorough investigation can busy executives be assured of making the “right” choice.

Technology Dominance Over-Shadowed by Client Services Differentiator | PEO Blog

Thursday October 20, 2011

by Joe Caulfield

Human Resource Outsourcing (HRO) and Professional Employer Organizations (PEO) are proven to help improve service and manage operating costs and cash flow. So it’s not astonishing, given the grimness of our current economic situation that companies are increasing their use of outsourcing to cut costs in many areas, to include HR.

HR outsourcing offers key benefits, including reducing costs, increasing the potency of HR delivery, providing greater expertise, and moving HR up the value chain to aid in organizational growth. The motivations for outsourcing Human Resources are access to skills and knowledge, quality and cost reduction.

The past fifteen years have seen an unprecedented rise in employee to employer litigation, employment regulations and tax laws. Effective management of Human Resources has become a complex task for small to mid-market business owners. Then, there is the laundry list of unfriendly policies, including laws governing hiring, family leave, sexual harassment, paying employees, leaves of absence, employee benefits, and workers’ compensation, not to mention the new healthcare laws coming.

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