Just as your business is unique from any other, employee leasing (a.k.a. PEO) companies are also very different. As you inquire about employee leasing services, start by understanding the three basic categories that most employee leasing companies fall into.
Top of the Line
When hiring, maximizing and retaining good employees is the primary focus for success and profitability of your business, this group of employee leasing companies offer some incredibly beneficial services.
Designed for white and gray collared businesses, this group's main strengths are a strong employee benefits platter along with tailored human resource and payroll services. A short list of the services offered in this category of employee leasing companies include:
- Medical Benefits with Life and AD&D,
- Dental/ Vision Plans,
- Supplemental Benefits, 401(k) Plan with Match Options,
- EPLI Coverage,
- Pay Cards,
- Employee Tuition Reimbursement,
- Legal Plans,
- E-Learning /Webinars,
- Employee Assistance Programs,
- Flexible Spending Accounts,
- Time Clock Interface and
- Payroll Helpdesk.
Some of the industries served in this group include the following:
- Healthcare,
- Hospitality,
- Professional Services,
- Manufacturing,
- Retail,
- Industrial,
- Education and
- Government
Because this group offers a wide array of benefits and services, you can expect to see higher administrative costs for the expenses incurred. All will have employee and annual payroll minimums, different health insurance companies and pricing. Tip: Know the top three services (in order of importance) you need from this group of employee leasing companies and compare from there.
Middle of the Road
If competitive workers' compensation rates are a high priority, with some benefit options to access, then this may be the group that fits with your business. You'll want to be careful and selective with this group. Unlike the other two categories that clearly define their niche, many within this group try to be all things to all employers.
Benefits you're likely to find are:
- Medical Benefits with Life and AD&D,
- Dental/ Vision Plans,
- Supplemental Benefits and
- 401(k) Plan with Match Options.
Some of the industries that fit well with this type of employee leasing company would be:
- Construction/Trades,
- Restaurants,
- Hotels,
- Childcare,
- Industrial and Machinery.
You can find some all-around great companies within this group if you do your homework. Annual payroll and employee minimums are significantly less in this category of PEO than the "Top of the Line" group. You'll also find a more competitive administrative cost with this group because less servicing of benefit and human resource functions are involved. Tip: If benefits are the highest priority for your business, it's worth the nominal increase of moving up to the "Top of the Line" group.
No Frills
If you need an employee leasing company with low set-up fees, low minimum payrolls and competitive workers' compensation rates, then this group is a great fit for you. Backed by insurers that underwrite higher risk workers' compensation classifications, these employee leasing companies are great for keeping insurance and administrative costs down so that you can remain competitive.
Benefits are not an option with these employee leasing companies, but most are capable of making pre-tax deductions for you on any existing benefit plans. Some of the industries you'll find this group serving are:
- Construction/ Trades,
- Landscaping,
- Welders,
- Movers and
- Warehousing.
Because they spend little to no time handling benefits and HR issues unlike the other categories, this group delivers very competitive administrative costs. Tip: Years in business is an important factor in this category.
What's important is to understand what specific services are important to you, your business and employees. Too many times over the years we've found companies paying for services they'll never use, or in need of services that aren't available. It's time consuming to have make changes- and of course that costs money. If you're ready to take a strong look at employee leasing, we can help. Please call us at 1-888-582-8388 or visit us on the web at www.EmployeeLeasingQuotes.com Our information is free and helpful!
Source by Mike Burgelin
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