Peo For Manufacturing
Professional Employer Organization For ManufacturingP.M.L and its members have been serving the needs of small and medium-sized businesses in the Manufacturing industry since 1985. One of the longest operating Peo companies in the United States.
Manufacturing companies are in a particularly challenging position. A 2003 study by the U.S. Small Business Administration reported the economic burden imposed upon companies by one piece of the human resources puzzle—regulatory compliance. The study showed that small businesses had an annual regulatory burden of $6,975 per employee, a burden nearly 60% above companies with 500 or more employees. In the manufacturing sector, the cost differential was more than double. These costs are driven primarily by regulation compliance and paperwork. When combined with the time and energy it takes to manage payroll and taxes, procure benefits, oversee risk and safety issues and other human resources tasks, it is easy to imagine a business owner who does nothing but push paper all day.
Achieving business success in any industry requires a relentless focus on the basics: the core product or service, customers, distribution channels, competitors and the bottom line. Administrative functions, such as hiring and firing workers, payroll, taxes, health benefits, workers' compensation insurance and dealing with the ever-increasing number of state and federal compliance regulations, can easily distract a business owner's focus. Many smaller companies do not have the internal resources to manage these human resources responsibilities effectively and keep their core businesses on track. Ultimately, this can significantly hinder a company's growth potential and hurt profitability.
Contracting with a Professional Employer Organization (PEO) to handle all of a company's human resource functions is a viable solution. A growing trend in business today, PEOs are full-service human resource organizations that manage the day-to-day administrative functions of small and medium-sized companies. PEOs establish a co-employer relationship with their clients and contractually assume certain employer responsibilities and employment-related liabilities.
As a co-employer, a PEO provides a fully accessible off-site human resources department. By partnering with its clients, a PEO can provide businesses with Fortune 500-style benefits and greater levels of human resource expertise than they could afford by themselves.
The Power of Scale
It is no secret that large corporations enjoy greater purchasing power than smaller companies. Small companies can be especially hard hit in the areas of employee health benefits and workers' compensation insurance. By teaming with a PEO, small and medium-sized companies are able to benefit from the PEO's negotiating power and administrative efficiencies.
The use of PEOs is a growing trend in business today. PEOs are growing at a rate of more than 25% annually, and most analysts predict that this rate will continue for the next five to ten years. There are several reasons for the increasing popularity of PEOs:
Employment litigation.
It's a fact of business life: Even the best-run manufacturing companies are vulnerable to employment-related lawsuits and the damage awards that can result. The Equal Employment Opportunity Commission reports a 140% increase in the number of lawsuits filed by the agency alleging employment discrimination in the last decade. In the last three years, the number of harassment claims more than doubled.
Small employers recognize the need to take proactive steps to decrease the risk of litigation. Some PEOs offer their clients employment practices liability (EPL) insurance to alleviate potential employment-related problems and provide insurance protection should claims occur. Additionally, PEOs provide comprehensive training to help reduce the risk of lawsuits and help clients recognize relevant laws and employees' rights and responsibilities under the law.
Regulatory Compliance.
In the last several years, the United States has seen a significant increase in employment-related regulations and federal employment practices laws, including the Americans with Disabilities Act, the Fair Labor Standards Act and the Family and Medical Leave Act. Add these to the mix of state and local employment laws and the result is a minefield for the unprotected business owner.
Attracting and Retaining Quality Employees.
As business owners know only too well, the days of employees remaining with one employer for many years are gone. Smaller companies are at a distinct disadvantage in attracting the best-qualified workers, since they usually are unable to offer comprehensive benefits packages at an affordable cost. By contracting with a PEO, these same companies are usually able to upgrade their policies, provide greater benefits and add new benefits which were previously unavailable to them because of their size. Comprehensive benefit packages, including 401(k) plans, extensive medical benefits and Employee Assistance Programs, are also a valuable tool in recruiting and retaining employees.
Clearly, there are many benefits in hiring a PEO.
-- By Katrina C. Arabe October 20, 2003 ThomasNet Take a few moments to browse our site and see why using a Peo for Manufacturing or Professional Employer Organization for Manufacturing is not only a GREAT idea, but usually costs NO MORE than you are already spending! Our services free you and your staff from the following tasks; Our services will give you Manufacturing Company an advantage over your competition that you can't afford to go without. A closer look at Professional Employer Organization and PEO services will help you understand how our program works. A list of our Professional Employer Organization and PEO services details what we can handle for your Manufacturing business. Professional Employer Organization, PEO professional employment organization, staff leasing and outsourcing human resource functions can provide your Manufacturing business with group rates on employee expenses such as workers compensation and health benefits to further help reduce employee expenses.
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