Disclaimer: This tool's sole purpose is to illustrate reasonable potential value that might be available from a relationship with [our PEO/HRO], based on the general business model of recovering time from outsourcing, joining a larger group for its better buying power, and getting access to better employment expertise. The numbers illustrated are not guaranteed in any way and may be different based on variables not contemplated in this simple model. This model does not constitute a proposal nor a quote for PEO services.
Potential Financial Advantage:
Potential Value of 0 redirected hours
If refocused on driving Cashflow, Revenue, Margin
Replace Payroll materials costs
Plus other possible employment related Service Fees
Employee Benefits savings
Savings will vary by client. This will just be an estimate.
Workers Comp insurance savings
Savings will vary by client. This is just an estimate.
HR Compliance Risk Reduction
like EPLI and other fines and lawsuit avoidance costs and actual costs
~0 Hours Per Year
Many businesses now carry Employment Practices Liability Insurance (EPLI) and spend additional monies to protect themselves from the highly regulated and highly litigious employment environment.
A PEO client may be covered by ELPI insurance the PEO, and the PEO legal relationship further protects the client against employment risks.
A PEO's larger group may allow a client to receive lower WC costs. Plus enhanced safety initiatives further reduce risk, and improve productivity.
In addition to saving money on Employee Benefits through a PEO's larger group, many clients use this method to significantly enhance their benefits offering, at a fraction of the cost of doing so themselves. This gives them a competitive edge in attracting and retaining the best employees. Be sure to include your total costs (not just employer portions) of Medical, Dental, Life, Disability, etc.
Included in PEO services is the handling of payroll through a very advantageous co-employment relationship that actually eliminates some tax and law requirements of the client company (they are handled through the PEO's Employer ID Number).
Additional costs replaced may include 125 plan fees, retirement plan fees, employment related legal costs, etc. And other costs that may be reduced include drug testing fees, background checks and more.
If this Time is currently that of an administrative support person, leverage its value by having that person take administrative tasks away from Revenue Driver and Margin Impactor employees, thus “giving” the freed up admin hours to those high value people.
If this Time is currently that of upper management who drive the business, then its value is immediately obvious.
If these hours can be eliminated, ensure you enter the TOTAL cost of wages, taxes, and benefits.
Employment application updating / compliance
PRWORA compliance / administration
IRCA - I-9 compliance / administration
EPA complianceJob posting ad design
Employment rights posters cost / updating
COBRA compliance & administration
HIPAA compliance & administration
DOL communication assistance
Title VII compliance
Wage and hour claims response
Human Resources compliant forms resource
Employee handbook development / distribution
Employee handbook changes / compliance updating
EPLI - Employment Practices Liability Insurance
Applicant resume reviews
Motor vehicle record checks
Criminal background checks
Post-offer drug testing
Employee onboarding process
Employee files management - HIPAA compliance
Employee files management - retention tracking
Employee files management - timely destruction
Employee anniversary date tracking
Drug testing (reasonable cause, random, periodic)
Disciplinary/probation policies / procedure development
Responding to employment and wage verification request
Human Resources Benefits Management Workers Comp and Safety Payroll and Tax Admin
108 employment tasks, services and products are in this model.
Laws not applicable to the size business you entered are automatically not included in the time estimate.
If your company is NOT doing all or most of the remaining things, there would be great value in doing so, both from the aspect of controlling employment risk, and optimizing the performance of your employees.
Workplace Safety Risk Factor - on a scale of 1 to 10 examples would be:
1: totally administrative/clerical
2: exposure outside of office - sales, deliveries, etc., medical practice
4: autobody shop
5: printing company
6: sheet metal shop
7: inside electricians
9: building erection
These are just examples. Your exact profession/profile may not be listed here.