Does anyone have any experience with companies referred to as professional employee organizations? They basically become your employees employer. They handle your payroll, unemployment, health insurance, disability, life insurance etc. They claim they can save me lots of money and take away the headaches previously mentioned. Any input is appreciated, Peter
A business question (GDG)
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Depends.
You will be paying them a premium to take those responsibilities, and also they may replace your employees with less capable workers. You will be basically contracting your headcount from this agency rather than them being your employees. Any gripes with the workers will have to go through them.
If you are dealing with technology and engineering, and hand your engineers over to this company, now the engineers will be required by laws in most states to have professional engineering licenses to offer you services rather than doing work in house. Also the company offering the services will need to be licensed with the state board of engineers, or if another engineer reports them, they can and will be shut down leaving your company in a world of hurt. (the thing is the engineering boards have been looking the other way at these arrangements, but eventually they will be reprimanded.)
I am sure other industries will be similiar. Farming out the lower end jobs may be okay, and make since when it comes to downsizing or ramping up headcount for short term bursts.
If it sounds too good to be true, it probably is.
You will be paying them a premium to take those responsibilities, and also they may replace your employees with less capable workers. You will be basically contracting your headcount from this agency rather than them being your employees. Any gripes with the workers will have to go through them.
If you are dealing with technology and engineering, and hand your engineers over to this company, now the engineers will be required by laws in most states to have professional engineering licenses to offer you services rather than doing work in house. Also the company offering the services will need to be licensed with the state board of engineers, or if another engineer reports them, they can and will be shut down leaving your company in a world of hurt. (the thing is the engineering boards have been looking the other way at these arrangements, but eventually they will be reprimanded.)
I am sure other industries will be similiar. Farming out the lower end jobs may be okay, and make since when it comes to downsizing or ramping up headcount for short term bursts.
If it sounds too good to be true, it probably is.
Business answer
Hi Peter
Here at Dogs Afield, we work with a national HR company thet takes care of all our payroll,W2s, workmen’s comp., employee insurance/benefits and have a 401 plan.
They do not get involver with replacing any employees unless I have them head hunt for me. I do the hiring and firing without getting them involved. We are a small company with 8-11 employees depending on the season and it does save us money.
However, if I were you, I’d check them out and visit some of their clients before signing.
Jerry Day
Hi Peter
Here at Dogs Afield, we work with a national HR company thet takes care of all our payroll,W2s, workmen’s comp., employee insurance/benefits and have a 401 plan.
They do not get involver with replacing any employees unless I have them head hunt for me. I do the hiring and firing without getting them involved. We are a small company with 8-11 employees depending on the season and it does save us money.
However, if I were you, I’d check them out and visit some of their clients before signing.
Jerry Day
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By the tone of your post it seems that they would just be doing the payroll portion of your accounting. I own a commercial construction company and we do all of our payroll in-house (6-15 employees depending on the projects). However, most of my customers are small business owners. I am seeing it about 50/50 in house versus a service like what your talking about. Most of the folks that use the service love it. Like you said, it takes away alot of headaches. Typically they are spin offs of an accountants office.
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You need to look into what they will be doing for you.
Will you be handing them your employees, and you are basically contracting your work force from them leaving you a company of just yourself? I have dealt with these constantly, and sometimes they are walking a thin line on being shut down. It also sux when you have a problem you have to call the contracting company and complain to them rather than the person with the issue. They also tend not to give their employees much in the way of benifits so you lose good personel to other companies.
Or, will you be contracting out the payroll and accounting headaches to them? If that is the case, they may be worth it.
Will you be handing them your employees, and you are basically contracting your work force from them leaving you a company of just yourself? I have dealt with these constantly, and sometimes they are walking a thin line on being shut down. It also sux when you have a problem you have to call the contracting company and complain to them rather than the person with the issue. They also tend not to give their employees much in the way of benifits so you lose good personel to other companies.
Or, will you be contracting out the payroll and accounting headaches to them? If that is the case, they may be worth it.
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