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The PEO Business Model

To be a PEO, you have to do certain things for your clients—human resources, employee benefits, payroll and taxes, and workers’ compensation—through the co-employment relationship.

That doesn’t sound very colorful. How much variety can you create with just these four elements? As it turns out, quite a lot.

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Legal Currents

Receipt of Commissions and Other Fees by PEOs and Affiliates from the Sale of Health Insurance Products

A frequently asked question about health insurance products is whether a PEO or an affiliate of a PEO can receive commissions or other fee payments from the sale of health insurance products. Analysis of the issue requires a consideration of both the Employee Retirement Income Security Act of 1974 (ERISA) and state insurance law. This article will discuss the former, while it is anticipated that a PEO Insider® article late this year will address the state insurance law aspects.


Keys to Client Loyalty and Satisfaction

Benefits have long been a means by which employers have demonstrated their commitment to their employees. Yet, over the past several years, employees have taken on more responsibility for their benefits as employers adjust their strategies to address rising costs, the implications of an uncertain economy, and the institution of healthcare reform. Through their benefits offerings, employers generally hope to retain employees, control health and welfare benefit costs, and increase employee productivity.

Risk Management

Small PEO Best Practices

I am frequently asked such questions as, “How do I get to the next step,” or “How can I compete?” As a smaller PEO, you may feel more vulnerable to a variety of influences, including economic swings, marketplace availability, legislative changes, and, of course, the competitive landscape. How do you compete with the “big boys” and still retain your profits? In the risk management context, there are ways to protect and grow your business and make you stand out from your competition, although not all of them relate directly to workers’ comp and risk.


The Evolving PEO Sales Process

With the feature of this issue of PEO Insider® examining the PEO business model, it might be interesting to look at the evolution of the PEO sales process. I last chronicled this evolution in a PEO Insider article in December 2003. I will briefly revisit this so we can assess where we are and where we’re headed.

Start-up Guide

Workers’ Compensation for the Start-Up PEO

Is this title an oxymoron? Good grief—any cheerful pessimist would bet even odds that snapping up dirt-cheap workers’ compensation is an impossible endeavor. Actually, it’s not impossible and there are several ways for a start-up PEO to establish a workers’ compensation program.


The Inside Word

Professional Employer Model Continues to Evolve to Meet Business Needs Brent R. Tilson

By now, many PEOs are using the statistical research in their marketing that proves companies that use PEOs outperform those that don’t.1 Yet, it has been said that while we all spell PEO the same way, that is where the similarities end. Thus, we have this interesting dynamic: at the macro level, businesses greatly benefit from PEO services, yet, at the micro level, PEOs provide their services in many different ways.

NAPEO Notebook

Engagement: A Tale of Three Members Patrick J. Cleary

In this space, I have often written about the importance of engagement—the importance of our members (i.e., you) connecting with local elected officials to carry the PEO message. In the last month, we’ve had three good examples of members around the country who have stepped up and engaged with their local officials, each in his or her own way.

Up Front

NAPEO Participates in SHRM Conference Kerry Carruthers

As most of you know, NAPEO has undertaken for the past two years a concerted effort to raise the visibility of the PEO industry. Up until now, our efforts have primarily focused on small business owners and executives in the form of our “Find a PEO” website, extensive online advertising, white papers highlighting the small business benefits of using a PEO, and more.

Statehouse Guide

NAPEO Members, and a Client, Brief Massachusetts Officials about State PEO Bill Melissa Kelly

Bob Burbidge, CEO of Genesis HR Solutions, hosted a legislative briefing and tour for members of the Massachusetts Joint Committee on Labor and Workforce Development at Genesis headquarters in Burlington, Massachusetts, on June 1, 2015. Members from ADP TotalSource helped facilitate the event, which was held under the banner of the New England Leadership Council.

NAPEO Advisor

Large Deductible Study - Smart I-9 Form, No-Hire Clauses, Earned Sick Time Changes Farrah L. Fielder, Esq.

Rumor has it that the National Association of Insurance Commissioners (NAIC) and the International Association of Industrial Accident Boards and Commissions (IAIABC) have joined forces on a project to update a 2006 Workers’ Compensation Large Deductible Study. Is this true, and, if so, do PEOs and NAPEO fit into the project?

PEOs in the Community

Not Just a Living, But a Life Lee Yarborough

This column, “PEOs in the Community,” explores how PEOs are developing and nurturing relationships in their communities. Being embedded in the small business world, PEOs are uniquely positioned to lend their time and expertise to serving their communities, while at the same time enhancing industry visibility. This month, Lee Yarborough of Propel PEO, Inc. shares her company’s core values and how they are reflected in Propel’s approach to community service.

PEO Spotlight

Learning PEO from the Outside In Stephanie Oetjen

A few years before starting his PEO, Chris Dollins managed about 150 sales reps on four teams across southeast Texas for Sprint. He then left that position and opened his own retail location for the company, his first entrepreneurial venture. Three years later, with partners Michael Hopkins and Mike Greathouse, he entered the PEO world by founding Employer Flexible in Houston, Texas, in 2005. Wait a second—jumping from selling phones to PEO?

Global Insights

Businesses Hire 500,000 Veterans and Military Spouses Thomas J. Donohue

As Americans celebrated the July 4th holiday last month, the U.S. Chamber of Commerce celebrated a major milestone for Hiring Our Heroes, an initiative that helps veterans, businesses, and our economy.

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