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Feature |
Tough Choices
Client Recruiting and Hiring Services
There are many good reasons PEOs should consider offering recruiting and hiring services to their clients:
- They are a good addition to the service package to offer clients and entice prospects;
- They could be a profit center;
- To capitalize on the upcoming need as Baby Boomers begin to retire;
- Better staffed clients make more money, which translates into more money for the PEO;
- Likewise, growing clients make more money for the PEO;
- Fewer jerks working for clients means fewer HR hassles; and
- To reduce worksite employee turnover, thus reducing the associated expenses and unemployment costs.
But, the number-one, most important reason is this: to prevent and reduce liability. Leaving clients to their own, untrained and stressed-out devices to recruit, write employment ads, conduct pre-employment testing, and interview candidates leaves the PEO open to a wide variety of liability….
For the rest of the article, click here.
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Departments |
Legal Currents
New SBA 8(a) Guidance and NAPEO HUBZone Efforts
William J. Schilling, Esq.
As a valuable service of membership, NAPEO battles to protect its members' interests by working with a variety of state and federal agencies. Over the years, NAPEO has maintained a close and positive working relationship with the Small Business Administration (SBA). Starting in 2000 with regulatory clarification that a small business did not lose its small business classification by contracting with a PEO—the first federal regulation to specifically address PEOs—NAPEO has continued to advance the interests of PEOs and their clients. Most recently, NAPEO secured enhanced guidance for the 8(a) Program and facilitated adoption of a procedure for HUBZone entities to gain authorization to use PEO services….
For the rest of the article, click here. |
HR & Employment Law
Important Changes to the I-9 Process
M. Catherine Farrell, Esq.
Imagine you sign up a new PEO client, only to find that a few of the employees have not properly completed their I-9s. You check and learn that the original worksite employer I-9s are deficient. In 2008, what are your obligations as a PEO, and what concerns should you have?
As we know, the I-9 (Employment Eligibility Verification form) is the federal employment form completed by the employer and employee, is maintained by the employer, and verifies the employee's eligibility to be employed under the Immigration and Nationality Act (INA) of 1952 as amended (including the 1986 amendment, the Immigration Reform and Control Act (IRCA)). It was amended and reissued June 5, 2007. The amended version…
For the rest of the article, click here. |
Benefits
Anatomy of a Health Benefits Strategy
Helping Employees Understand Costs and Adding Healthy Lifestyle Features
Amber Vargas
Concerns about healthcare coverage for employees and what it will cost are at the forefront of the news today. Rising healthcare costs have made it difficult for some employers to continue offering it as a fully paid benefit for the employees they hire. Some people involved with government feel that forcing companies to pay for a portion of their employee's health insurance will solve the problem by ensuring that more individuals are covered for healthcare. Although this may work in the short run, it will also cause many businesses to either pay their employees less in wages to make up the difference or go out of business. Perhaps a more long-term solution is to educate employees on the true costs of medical procedures and prescription drugs. Another long-term solution is…
For the rest of the article, click here. |
Risk Management
Catching the Workers' Compensation Tail
Managing the Long-Term Liabilities of Workers' Compensation Claims
Greg D'Ambrosio, ARM, AU
Workers' compensation insurance is a long-term liability line of business. Stated otherwise, claims are not fully paid and closed until several days, months, or even years after a claim has occurred. This is also commonly referred to as the "tail."
For PEOs, in particular those on loss sensitive programs, the tail can significantly impact the organization's financial statements. No PEO, or any business, wants to restate earnings for the worse due to adverse development of losses. Therefore, it is important to…
For the rest of the article, click here. |
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Sales
The Employee-Centric Management Era
New Opportunities for the PEO Sales Professional
Dave Rettig
Last month I had an opportunity to attend a presentation by Kip Tindell, chairman and CEO of The Container Store. Coincidentally, Fortune Magazine had just named Kip's company one of the 10 best companies to work for, for the ninth time. After hearing of the many innovations, accomplishments, and recognition of The Container Store over the years, due primarily to Kip's unusual attitude toward his employees, this all began to sound familiar. Other companies began to come to mind, such as Southwest Airlines, Starbucks, and several others, that also exhibit this almost fanatical "employee first" attitude. Then there were the fairly recent books, also touting what I call the employee-centric management philosophy. Books such as "Over Promise and Over Deliver," " The Rockefeller Habits," and "Good to Great" all reveal a common theme among these very successful companies. Its clear that there is definitely something to this employee-centric attitude that many other companies have yet to discover. How can they be missing it? The correlation between an employee-centric management attitude and the extraordinary success…
For the rest of the article, click here. |
Operations
PEOs and Employment Eligibility
Part I: The I-9
William J. Schilling, Esq.
With the current hype about immigration and the increasingly frequent television press clips of Immigrations and Customs Enforcement (ICE) personnel rounding up illegal workers at yet another employer worksite, the issue of employment eligibility is clearly on the front burner both politically and in terms of employer liability.1 Moreover, the Department of Homeland Security's (DHS) announcement that it intends to step up I-9 inspections of employers in 2008,2 coupled with the imposition of higher fines, means that the era of the slap on the hand for hiring violations is over. It is very clear that…
For the rest of the article, click here. |
PR and the PEO
How to Avoid Winding Up as Toast, Too,
When a Scandal Hits a Competitor
Mike Flagg
If you've been keeping up with NAPEO's Public Relations Initiative, you know we preach how important it is to go out and meet the reporters who are writing about workplace issues in your market and the editors who supervise them.
Even at a medium-sized newspaper, you're likely to have at least several ways in—the medical reporters, the labor reporter, the workplace reporter, business reporters, and feature and lifestyle reporters who write about life at work.
It's about being proactive. If you call up the paper and suggest a story idea, you're far likelier to get a respectful hearing if the reporter already knows and trusts you from a mutually beneficial relationship both of you have nurtured over months or years.
But there's another reason besides getting stories—in fact, there are times when you don't want coverage. That is, of course, when…
For the rest of the article, click here. |
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| Columns |
The Inside Word
Growing Up
Greg Slamowitz
2008 NAPEO President
Have you ever been to one of those events where you are stuck listening to someone boast about his kids? We all claim we are not like that, but when your own kids are in fact extraordinary, it is hard to recognize our own comments as boasting. We are merely stating the facts.
As NAPEO's president, I apologize if these comments appear like boasting, but our association has had some extraordinary achievements in the past couple of weeks. It started in Colorado with NAPEO's passage of legislation to ensure clients in PEO arrangements are entitled to a variety of tax credits. It is a clear case where NAPEO's dues, in support of our government affairs agenda, delivered a direct, bottom-line return to its members. The passage of this bill eliminated a significant disincentive to clients entering PEO arrangements.
On the heals of Colorado, the Utah legislature approved NAPEO's…
For the rest of the article, click here. |
Statehouse Update
Government Affairs: A Relationship Business
Tim Tucker
It's only eight weeks into many state legislative sessions around the country, and NAPEO has already seen significant success in fulfilling the association's proactive 2008 government affairs mission. The key element to an effective effort is forging and maintaining solid relationships with key public policymakers. NAPEO's legislative outreach initiative has been re-tooled to ensure that state legislatures and key regulatory agencies have "champions" who understand and support the PEO industry. The positive legislative outcomes to date are the result of extensive planning and execution of a comprehensive strategy to obtain legal and operational certainty in states across the country. However, the foundation for the success is rooted in the positive relationships with public policymakers….
For the rest of the article, click here. |
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NAPEO Advisor
Age Discrimination Complaints, OSHA Standards
William J. Schilling, Esq.
Q. A client with 27 worksite employees wants to terminate a worker who has filed a complaint with the Equal Employment Opportunity Commission (EEOC) for age discrimination. What precautions are necessary for such a termination?
A. First and foremost, if…
For the rest of the article, click here. |
Start-up Journal
The PEO Life Cycle
Expanding Beyond the Traditional Suite of Services for Your PEO Start-Up
Daniel S. McHenry
This installment of PEO Insider's "Start-Up Journal" will complement the theme of the April 2008 feature as it relates to enhancing the traditional PEO revenue streams via the addition of a recruiting or staffing component to a start-up PEO's suite of services. To frame this discussion, let us change our focus on the client as the source of a PEO's revenue stream and begin to…
For the rest of the article, click here. |
Global Insights
Why Would a Job Seeker Choose a Small Company Over a Large One?
S. Oetjen
Why indeed? The easy answer is, it depends on the person and the company. More to the point, however, is the question: How can small companies compete with large companies for talent? Are small businesses—PEOs' client base—doomed to take what they can get as the most brilliant employees opt for big companies with big money, big resources, and big benefits?
Not necessarily. But it takes…
For the rest of the article, click here. |
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