Blog

NOW YOU KNOW!!

ARC CONSULTANTS HR STATISTIC REVIEW # 5

Check out ARC Consultants HR related statistics:

Statistic # 121 – HR related tasks contribute to 25-35% of the average business owner’s time or their key personnel.

Statistic # 122 – 35% of CEOs said it is an absolute necessity for HR managers to be “proficient” in workforce analytics.

Statistic # 123 – More than 3,000,000 workplace injuries occur each year in the US.

Statistic # 124 – Workplace injuries cost U.S. businesses nearly $250 million each year.

Statistic # 125 – Employees that are satisfied with their employee benefits are almost 4X more satisfied with their jobs.

Statistic # 126 – Being proactive in creating a safe workplace can yield up to a $6.15 return on each dollar invested.

Statistic # 127 – A $1,000 Workers Comp claim can potentially cost an employer over $5,000.

Statistic # 128 – On average, there are 12 workplace death accidents per day in the U.S.

Statistic # 129 – Companies with fewer than 20 employees have 60% higher compliance costs.

Statistic # 130 – 7-25% of a small business owner’s time is spent handling employee paperwork.

Statistic # 131 – 36% of surveyed companies have had problems retaining employees in the past 12 months.

Statistic # 132 – 33% of surveyed companies had used benefits to retain employees in the past year.

Statistic # 133 – 90% of respondents reported increases in their health plan premiums.

Statistic # 134 – 80% of the companies surveyed used healthcare benefits to keep employees in the past year.

Statistic # 135 – The average small business owner is now spending as much as 13 hours a month to comply with ACA (Affordable Care Act).

Statistic # 136 – 57% businesses surveyed offered retirement savings benefits to help retain employees.

Statistic # 137 – According to the U.S. Bureau of Labor Statistics the average employer pays about 70% of an employee’s health insurance premium.

Statistic # 138 – 20% of surveyed companies said their health insurance premium increase exceeded 20%.

Statistic # 139 – 40% of employers in the United States report difficulty filling certain jobs.

Statistic # 140 – 40% of HR functions are being restructured.

Statistic # 141 – Businesses across the US have a nearly 12% chance of an employee legal action.

Statistic # 142 – 6 in 10 companies plan to increase spending on HR in the next 12 to 18 months.

Statistic # 143 – Almost 50% of all HR departments will be restructured in 2015 or 2016.

Statistic # 144 – 40% of small businesses incur IRS penalties.

Statistic # 145 – An average employee legal case against a mid-sized employer takes 275 days to resolve and carries a cost of $125,000.

Statistic # 146 – 48% of companies that partnered with a PEO made that decision to lower healthcare benefit costs.

Statistic # 147 – 40% of companies that partnered with a PEO made that decision because of the need to focus on their core business.

Statistic # 148 – 38% of companies that partnered with a PEO made that decision in order to offer quality HR service to assist in recruiting and retention.

ARC Consultants is a PEO consulting firm, we broker out PEO services for all the leading PEO companies. We have exceptional knowledge in the industry, and all the latest products. With our expertise and knowledge, we are able to better understand our client’s needs and concerns and assist them in navigating through the complexities of making the correct decision in partnering with a PEO. We assist our clients in finding them the PEO that best suits their specific needs. We as well, negotiate on their behalf and service them throughout our relationship. We maintain exceptional relationships with our PEO providers and thereby we have the ability to service our client’s needs and advocate on their behalf.

Reach out to ARC Consultants now, so we can start assisting you in finding the solution that’s just right for you…… www.arcpeo.com

For more statistics and the latest in the PEO industry follow us on LinkedIn.

Now You Know!!

ARC CONSULTANTS HR STATISTIC REVIEW # 4

Check out ARC Consultants HR related statistics:

Statistic # 91 – The DOL enforces over 180 Federal laws affecting 10 million employers and 125 million workers.

Statistic # 92 – Client’s outsourcing multiple functions to a single vendor save 32% over those using multiple vendors.

Statistic # 93 – . Payroll and taxes is ranked the #1 administrative burden among businesses.

Statistic # 94 – 35% of HR managers spend more time now on human capital management related to compliance than they did 2 years ago.

Statistic # 95 – Companies that partner with a #PEO have nearly a 10% higher employment growth rate, than companies not with a PEO.

Statistic # 96 – Companies that partner with a #PEO save on average 21% on HR and administration than companies not with a PEO.

Statistic # 97 – 40% of businesses that use a #PEO upgrade their benefit packages.

Statistic # 98 – PEOs improve the work environment and increase safety by 20%.

Statistic # 99 – There is a 33% lower employee turnover at companies that partner with a #PEO.

Statistic # 100 –At ARC Consultants we strive to deliver to our client’s responsive, competent and unparalleled 100% satisfactory service.

Statistic # 101 – 48% of CEOs surveyed said their companies had lost money because of inefficient hiring processes.

Statistic # 102 –65% of executives say that HR opinions carry greater weight with senior management, the need for their HR teams to come forward with data-driven, competitive approaches and efficient technologies is more critical than ever.

Statistic # 103 – Only 58% of business owners know how to effectively drive down costs, and only 22% have been able to execute an action plan.

Statistic # 104 – Employees who are very satisfied with benefits are almost 4x more likely (81% versus 22%) to be very satisfied with their jobs.

Statistic # 105 – 9 in 10 employers say they are facing increases in the premiums they pay for employee health plans.

Statistic # 106 – Nearly 25% of employers are seeing health benefit rate increases in the double digits.

Statistic # 107 – The top employee benefits concern among employers, is the continued rise in the cost of providing group medical coverage for employees.

Statistic # 108 – 67% of employers are cost-shifting the rise in healthcare costs to employees.

Statistic # 109 – About 50% of employers say they are considering changing health carriers to condense costs.

Statistic # 110 – Despite the increasing cost pressures, 97% of companies say they plan to continue providing employer-sponsored coverage to employees.

Statistic # 111 – 75% of employment practices claims are groundless – but still require significant expense to defend.

Statistic # 112 – 90% of CEOs say it is important for HR managers to be “proficient” in workforce analytics.

Statistic # 113 –10% of small business owners cite that the most difficult aspect of running a business is hiring and managing a staff.

Statistic # 114 – 57% of employees said they’re likely to accept jobs with slightly lower compensation but better benefits.

Statistic # 115 – The price tag of a “bad hire” has cost some U.S. companies more than $50,000.

Statistic # 116 – That a third of business owners say they’ve experienced fines and penalties for non-compliance with government regulations.

Statistic # 117 – Employees whose bosses encourage them to take breaks during the day are 81% more likely to stay in their jobs.

Statistic # 118 – 41% of business owners hiring in the last 3 months reported few or no qualified applicants.

Statistic # 119 – 80% of CFOs say they feel powerless when it comes to managing their company’s healthcare spending.

Statistic # 120 – A recent survey found that 52% of employees expect their employer to pay at least 80% of the cost of their medical insurance.

ARC Consultants is a PEO consulting firm, we broker out PEO services for all the leading PEO companies. We have exceptional knowledge in the industry, and all the latest products. With our expertise and knowledge we are able to better understand our client’s needs and concerns and assist them in navigating through the complexities of making the correct decision in partnering with a PEO. We assist our clients in finding them the PEO that best suits their specific needs. We as well, negotiate on their behalf and service them throughout our relationship. We maintain exceptional relationships with our PEO providers and thereby we have the ability to service our client’s needs and advocate on their behalf.

Reach out to ARC Consultants now, so we can start assisting you in finding the solution that’s just right for you…… www.arcpeo.com

For more statistics and the latest in the PEO industry follow us on LinkedIn.

Now You Know!!

ARC CONSULTANTS HR STATISTIC REVIEW #3

Check out ARC Consultants HR related statistics:

Statistic # 61 – Did you know?? 71% of employers believe the costliest years of complying with PPACA lie ahead.

Statistic # 62 – In response to ACA challenges 70% of midsized employers are shifting costs to employees.

Statistic # 63 – 19% of surveyed employers think general administrative costs will be the top compliance-related cost-drivers in the years to come.

Statistic # 64 – Only 12% of employees are extremely satisfied with their benefits, and only 14% believe their benefits package meets their current family needs extremely well.

Statistic # 65 – According to a recent study by the DOL 90% of business are not in compliance.

Statistic # 66 – The U.S. Department of Labor estimates that approximately 70 percent of employers violate the FLSA’s classification requirements.

Statistic # 67 – Last year, employers paid out $18 million in penalties to 19,000 misclassified workers. Under federal law, an employee’s specific job duties and salary must meet all the requirements of the Department of Labor’s regulations.

Statistic # 68 – 96% of employers plan to continue to offer employer sponsored health care coverage, despite the fact that they feel #ACA has had a negative impact on their organization.

Statistic # 69 – 27% of employers believe the largest cost increase under #ACA will occur in 2018, when the Cadillac tax kicks in.

Statistic # 70 –  50% of employers believe their current plan would trigger the Cadillac tax, but only 3% say they plan to pay it in.

Statistic # 71 –  70% of midsized and 80% of large businesses, are shifting costs to employees, by changing or increasing employee co-pays due to #ACA challenges.

Statistic # 72 – 29% of midsized companies capped part time hours to manage their ACA costs.

Statistic # 73 – 54% of midsized and 49% of large businesses are not prepared to manage IRS annual ACA health care reporting.

Statistic # 74 –  30% of midsized companies reported unexpected expenses – such as fines, penalties and lawsuits – in the past 12 months as a result of noncompliance.

Statistic # 75 – 47% of employees surveyed stated that improving their benefits packages is one thing their employers could do to keep them in their job.

Statistic # 76 – Companies that join a #PEO have a 21% savings on HR Administration.

Statistic # 77 – According to a new report by the DOL, every 3.5 seconds a labor law changes.

Statistic # 78 – 97% of companies that partnered with a #PEO through ARC Consultants had a significant savings with their Workers’ Compensations costs.

Statistic # 79 –  A recent survey finds that 70% of business leaders are concerned about their access to employees with key skills to grow the business, and 53% of these business leaders report that their HR department is not prepared to find, develop, and source new talent.

Statistic # 80 – A recent survey finds 75% of surveyed companies are currently in the process of researching ACA solutions options.

Statistic # 81 – A recent survey finds that only a little over 15% of companies are confidently prepared for the ACA reporting mandates.

Statistic # 82 – The PEO industry is growing by over 15% annually.

Statistic # 83 – 59% of businesses with fewer than 1,000 employees, and 60% of businesses with fewer than 100 employees plan to invest in human resources technology this year.

Statistic # 84 – There are roughly 900 PEO companies in the US today.

Statistic # 85 – HR tasks can cost up to 8.5% of your annual gross payroll.

Statistic # 86 – 75% of companies are struggling to attract and recruit the top people they need.

Statistic # 87 – 88% of employees do not have a passion for their work.

Statistic # 88 – 30% of small business owners wear 5 to 6 hats a day.

Statistic # 89 – PEO clients are 28% more satisfied with their selection of healthcare benefits.

Statistic # 90 – Affordable Care Act (ACA) administration and compliance costs an average of $15,000 per year.

 

ARC Consultants is a PEO consulting firm, we broker out PEO services for all the leading PEO companies. We have exceptional knowledge in the industry, and all the latest products. With our expertise and knowledge we are able to better understand our client’s needs and concerns and assist them in navigating through the complexities of making the correct decision in partnering with a PEO. We assist our clients in finding them the PEO that best suits their specific needs. We as well, negotiate on their behalf and service them throughout our relationship. We maintain exceptional relationships with our PEO providers and thereby we have the ability to service our client’s needs and advocate on their behalf.

Reach out to ARC Consultants now, so we can start assisting you in finding the solution that’s just right for you…… www.arcpeo.com

For more statistics and the latest in the PEO industry follow us on LinkedIn.

Time for Change…..

Mark your calendars for January 1, 2016

On this date, the small group employer definition will change from 2 to 50 employees to 1 to 100 employees, which will ultimately impact your company.

WHAT DOES THIS MEAN FOR YOU?

  • Fewer Choices and Rate Increases Will Cause Disruptive Renewals.
  • Your health benefit premiums are likely to increase.
  • Your renewal process will be complex and painful.
  • You may experience significant disruption in their plan designs and contribution strategy.

WHAT CAN YOU DO?

Act Now to Lessen Impact.

Minimize the pain and partner with a Professional Employer Organization (PEO). Partnering with a PEO is the perfect opportunity to eliminate the impact of this definition change. A PEO offers large group innovative benefits–and many different ACA-compliant plan designs to choose from–which not only alleviate the burden and pain you are facing with regards to ACA regulations, but also assists you in delivering competitive healthcare and employee benefit options that meet your company’s needs, to attract and retain top talent.

Reach out to ARC Consultants so we can start assisting in finding the solution that’s just right for you….. www.arcpeo.com

The Small Business Efficiency Act (SBEA) and It’s Effect To The PEO Industry  

Dec. 22, 2014 – PRESIDENT SIGNS LEGISLATION DEFINING PROFESSIONAL EMPLOYER ORGANIZATIONS IN THE FEDERAL TAX CODE. President Obama signed the Small Business Efficiency Act (SBEA), shortly after the Senate approval on December 19th, 2014. The SBEA constructs a certification process for PEO’s within the Internal Revenue Service, and makes it easier and safer for small businesses to use PEOs to fulfil their employment tax obligations. Effective Jan. 1, 2016, the Act will impact several aspects of PEOs. Recognition Means PEOs Can Help More Small Businesses Grow and Thrive.

The National Association of Professional Employer Organizations (NAPEO) today hailed President Obama’s signing of tax extenders legislation that included provisions defining professional employer organizations (PEOs) in the federal tax code and creating a voluntary certification program for PEOs within the IRS. PEOs provide comprehensive HR, benefits, tax administration, and compliance services for small and mid-size businesses. “This is an historic moment for the PEO industry because Congress has now formally codified PEOs within the tax code and recognized the key role PEOs play in helping small businesses grow and thrive,” said NAPEO President and CEO Pat Cleary. “The certification program created by this legislation provides added assurance to small business owners who want to turn to a PEO to handle their employment tax issues and back office administrative and HR tasks.”

The legislation (the Small business Efficiency Act/SBEA) creates a voluntary certification program for PEOs within the IRS. To become IRS-certified, a PEO would have to meet financial standards (including bonding and independent financial audit requirements) and satisfy reporting obligations and other appropriate standards set by the IRS. Once certified, a PEO would take on sole liability for the collection and remission of federal employment taxes for worksite employees. Small and mid-sized businesses that contract with certified PEOs would be assured that they would not be liable for employment taxes once they remit their employees’ tax withholdings to the PEO.

The key champions of the bill were Reps. Kevin Brady (R-TX) and Mike Thompson (DCA), and Sens. Chuck Grassley (R-IA) and Bill Nelson (D-FL). “Now that the bill has been signed, we look forward to rolling up our sleeves and working with the administration to develop an effective regulatory framework. Our hope is that the process will begin soon since the bill language provides a relatively tight implementation timeline,” said Cleary.

According to NAPEO approximately 250,000 businesses use PEOs, and PEOs provide access to healthcare coverage for as many as six million people. Through a PEO, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies. According to a recent study, by noted economist Laurie Bassi, businesses in a PEO arrangement grow 7-9 percent faster, have 23-32 percent lower employee turnover, and are 50 percent less likely to go out of business than companies not using a PEO.

What Does the SBEA do for the PEO industry?

  • Creates a certification process for PEOs within the IRS;
  • Gives certified PEOs (CPEOs) the clear statutory authority to collect and remit federal employment taxes;
  • Eliminates the wage base restart for PEO clients join or leave a PEO relationship; and,
  • Codifies that customers of CPEOs will qualify for specified federal tax credits that the customers would be entitled to claim if there were no PEO relationship.

Next Steps…..

  • The IRS must issue regulations to implement the SBEA. The regulations to implement the certification program must be issued by July 1. Any additional regulations implementing the SBEA must be issued by the IRS no later than January 1, 2016.
  • The SBEA become effective on January 1, 2016.

Additional Material on the SBEA

  • A copy of the SBEA legislative language can be found here.
  • Background material from the House of Representatives on the ABLE Act (which contains the House Ways and Means Committee analysis of the SBEA) can be found here.

To learn more about the passage of the SBEA and what it means for the PEO Industry, view NAPEO’s one page summary here: http://www.napeo.org/docs/SBEAPassageFactSheet.pdf