A professional employer organization (PEO) is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development. Businesses around the work are aligning with the concept of human resources outsourcing because of the value it brings to the table around increasing profitability, increasing employee productivity, reducing the time that their existing staff spends on transactional human resources and employee ‘stuff’, reducing the liability associated with having employees, and overall lowering the company’s labor costs. Take a look at he Case Study below, provided by one of the largest privately owned PEO companies in the country, G&A Partners.
When a midsized engineering firm had become frustrated with the poor customer service it was receiving from its PEO, the owner was ready to abandon the PEO model all together. The firm had been promised safety and risk services by the PEO, but when it came time to deliver, the PEO said that the firm wasn’t paying a high enough premium to receive those services. The PEO also frustrated the firm’s employees by taking weeks to get reports done and by rarely returning employee’s phone calls. Also, the technology used by the PEO was outdated and did not give employees the easy access to information that they needed. The owner of the firm wanted to sever ties with the PEO, but building an entire in-house HR department meant assuming more expense and more risk. The firm chose instead to find a new PEO.
After an intensive search, they selected G&A Partners. Understandably, the engineers wanted to avoid the service issues they had encountered with their previous PEO, so they established a lengthy checklist of rigorous performance criteria G&A would have to meet. G&A provided the firm with an extensive list of specific services to be rendered, a service level agreement, and a detailed performance matrix for each level of service.
Not only was G&A able to exceed the engineers’ service expectations, but they also provided the firm access to our proprietary time and attendance software and assumed responsibility for their 401K.
After just a short time with G&A, the firm was able to eliminate $175,000 in costs and reassign their only HR expert (who before had spent much of her time overseeing, and often correcting,
the prior PEO’s work) to more strategic HR functions, like recruiting and employee relations. New technology allowed the firm to streamline its HR processes, which meant fewer mistakes and greater productivity. But perhaps the most pleasant and unexpected outcome was the peace of mind the firm’s owner discovered when he was able to transfer the firm’s 401K to G&A, along with his personal fiduciary responsibilities and risk.
Superior service, smarter processes, savings, greater productivity, and personal peace of mind – check!
For the complete story, visit: http://www.gnapartners.com/case-studies/outstanding-service-gives-clients-highest-return-their-investment
Questions on how PEO services can help your business? Contact Dray Carson at 480-229-3363