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Unleashing the Power of Your PEO

By: Shraga Jacobowitz

So, you’ve just joined a PEO or perhaps you’ve been part of a PEO for a while already. We’re sure you’re happy to have all the nitty gritty of your Human Resources department off your plate, (after all you didn’t start your business to become a Human Resource manager).

But, are you sure you’re really taking full advantage of your PEO partnership?

If you’re simply using a PEO to handle your human resources needs such as benefit packages, insurance, liability and risk management, to name a few, the answer to that questions is a resounding NO!

When partnered with the correct PEO, your company should not only be benefiting from the ability to handle your current needs, but should be able to leverage this partnership to gain top talent, maximize the potential of your current workforce and prevent employee turnover.

The primary reason a company chooses a PEO, over, for example, outsourcing their HR management jobs is because PEOs are a co-employment arrangement allowing companies to maximize their benefits without losing control of their employees. Thus, the partnership should be geared to helping your company, not only maintain control of, but getting the most out of your workforce.

So, how does a company leverage their PEO to maximize their workforce potential?  Here’s three ways your company can use your PEO partnership to do exactly that.

  1. Offer attractive benefit packages. In the changing market of millennial hires, attracting top talent is about more than just the paycheck. Potential employees are looking for great employee benefit packages as well.  And these new hires want it all….the best health insurance plans, a retirement plan that makes sense, life insurance, etc.  Because PEOs aggregate employees from multiple companies, partnering with the right PEO allows you to offer the benefit package of larger corporations at competitive prices.  The PEO’s ability to leverage the combined amount of employees also allows you to offer flexible benefit packages, so you can create the perfect match for your employees’ needs and lifestyle.

So how do you ensure you’re offering your current and potential employees the best packages? When discussing benefit packages, make sure your PEO is offering you and your employees the following:

  • A wide range of options for each employee to choose from.
  • Coverage for new hires with little or no waiting period.
  • A stable health care provider network with an updated administration system.
  • Familiarity with your needs, including a mastery of the complex issues associated with a dispersed workforce, if you are looking to expand out of state or overseas.
  • And finally, make sure that your PEO partners only with companies that resemble your own industry and workforce profile. In this way, your low risk business isn’t being lumped together with high risk companies, or high wage employees with blue collar employees, which can cause your insurance rates to rise and benefit packages to be limited.
  1. Take advantage of professional development and employee training opportunities. Many PEOs offer live/on-site, virtual/video or other learning opportunities for your employees so that they can develop their skills and expand their knowledge and expertise. The ability to offer such development and training is a great way to attract potential employees as well as utilize the full potential of your current ones. Make sure to ask your PEO about such opportunities so that you can take full advantage of what they have to offer.
  1. Utilize their HR professionals. While all PEOs have HR professionals on staff, when you choose a PEO to partner with, make sure that their pros understand YOUR business.  With the right HR professional in your corner, they can help you anticipate and resolve problems before they even develop. These pros can also help you with the interview, training, performance management processes so that you’re assured that you’re hiring the best employee for your business and its potential growth.

An added benefit to having HR pros on your side….it’s their job to stay on top of new regulations and compliance issues, so you don’t have to.  Keeping you up to date, notifying you of and dealing with any regulation and/or compliance changes should be part of your PEO package. Again having pros who understand YOUR business, ensures that they’re aware of any and all regulations or compliance laws that affect YOU specifically allowing you to always be on top of your game.

Taking advantage of these three points are just some ways to maximize your benefits from your PEO partnership.  Knowing all the benefits that can be gained from the PEO partnership is an important component of maintaining your PEO partnership.  Whether you’ve been partnered with a PEO for one day or for several years, reviewing the benefits you’re currently receiving and exploring others that you’re not, can definitely maximize what you are getting out of your PEO partnership.

That way, when you’re asked next whether you know if you’re taking full advantage of your PEO partnership or not, you can answer a resounding YES with absolute certainty.

Not sure how to take the next step in taking full advantage, ARC Consultants can help you review your current PEO and ensure that you are.  Give us a call or email to see how we can assist you in maximizing your benefits.

Currently with a PEO?? Are you satisfied??

By: Shraga Jacobowitz

There are over 900 PEOs currently in the US. PEOs partner with thousands of businesses and co-employ millions of employees. PEOs assist every industry and business size by streamlining their operations, lowering their costs and securing competitive benefit packages for their employees.

With such a vast variety of PEOs, it can be extremely difficult for business owners to identify the proper PEO that best suits their specific business needs. It can be extremely complex and cumbersome to differentiate and fully understand the differences and pricing methods.

PEO brokers are extremely helpful and resourceful, as they have tremendous experience and understand the differences between each PEO provider. In addition, they can assess your needs and match you up with a PEO provider that will meet your specifications, as they are familiar with all the latest products and services from each PEO. With a PEO broker you will receive better service from your PEO provider, as you will have an advocate on your behalf that has clout with the provider based on the aggregate amount of business the broker has with that PEO.

Every business that is currently in a PEO partnership, should do some due diligence into the partnership prior to making any decision on changing or maintaining your provider. Just keep in mind, that even though a PEO shows a proposal with significant savings it does not always come out to be that way.  Some PEOs can be offering fewer services, a skimmed-down package offering, or in some scenarios have some conditions that your current providers does not. Here are some thoughts that may be helpful in your decision process.

If you are pretty much happy, however you do experience some issues, try to identify those issues – whether it’s a quality of service, pricing, services offerings, benefit packages, technology etc. Then reach out to your current provider and express your issues to see what they can do to accommodate. Many times accommodations can be made, especially when the PEO provider feels your business to them is on the line. Although you may be very unhappy with your current provider, ultimately, you may find that re-negotiating a better deal or working with your current PEO provider and solving your issues will result in a far better outcome, far faster and simpler than transitioning to another PEO provider that may have the very same issues.

If you have come to the realization that your current PEO provider is not suitable and cannot meet your expectations, then obviously it would be best to move to a new provider that may be more suitable.

Here are a few pointers that are important to review regarding your current PEO:

1) Does your current PEO make many mistakes? The entire point of partnering with a PEO is to reduce risk and exposure, and ensure compliance. If your PEO is consistently making payroll discrepancies and not producing paperwork on time, then it’s time to entertain making a change.

2) Are you taking advantage of all the HR services your PEO offers? Many times companies will purchase a suite of PEO services they don’t even use or know exist. Educating yourself on the service offerings, may assist you in utilizing them.

3) Is you’re current PEO helping your business streamline its operations, and operate more efficiently? If dealing with your PEO causes more headaches than working without one, chances are it’s time for a switch.

4) Does your current PEO respond to your needs in a timely fashion?  In a healthy and conducive PEO-client relationship, communications should be quick, responsive and proactive. Your common goals should be smoothing out any potential issues.

5) How is the PEOs technology? Can you generate the reports needed? Is the onboarding and off boarding process efficient? PEOs that invest and constantly update the latest techniques and software will save you time and money.

6) Now here is an important one – Are your invoices and billing transparent and understandable? If you don’t understand how your PEO fees are broken down, then you may be overpaying. It is important to fully understand your PEOs billing methods.

7) Are your service fees, taxes, workers compensation and health benefits pricing competitive. We recommend an annual or bi-annual PEO Evaluation in order to review these questions and determine whether you need to restructure your PEO partnership.

 

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, as well as, 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

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