Recruiting Trend - PEO Professional Employment Organizations

In a good article on stltoday.com, Small businesses turn to PEOs for human resources help Angela Tablac, discusses some local companies that have been turning to professional human resources companies to take over their HR, recruiting and somewhat 1st level management of their employees.

Now this isn't really new to the IT staffing industry.  It's very similar to the recruiting side of RPO's, the staffing side of temp staff augmentation and the people management side of outsourcing projects. 

Expect to see this business exploding in the coming years.  It allows client companies to focus on their core business.  The PEO company will then be able to focus on recruiting more efficiently.  Besides, they are better at it anyway. PEO's already have payroll and benefit processes in place. A big  issue and problem I see for the PEO's is on the management side.  I don't mean internal management, I mean management of the field staff people.  For years, I've seen staff augmentation companies try to get into the project side of the business and fail big time because of this problem.  They need to spend the over head money and put a good Program Management team in place to oversee these client relationships.  This team needs to be responsible for staff field management.

Pay attention here recruiters.  This is a new high growth and opportunity avenue.

Comments

[Bruce Silver]

Angela Tablac's article is an excellent portrayal of the services and value that Professional Employer Organizations provide to growing businesses, and how it relieves busy executives and their staff of mundane non-core administrative, benefits and compliance functions. While many leading PEO's do a fantastic job in many areas, most do NOT provide Recruiting services beyond standard background tests, and the posting of job openings. Our experience has been that the few PEO's who claim to offer a "TRUE" RPO services, perform a mediocre job at best.

Like you, I see tremendous opportunities for the recruiter who develops a strategic working relationship with Professional Employer Organizations. Qualified recruiters can provide services, albeit at reduced rates, (you make it up in volume) to the PEO's co-employers.

Smart recruiters see how PEOs can help their small business clients operate more efficiently, effectively and compete against larger and more established competitors to attract and retain key employees.

Many leading PEO's allow growing companies to offer a "Fortune 500" benefits package at affordable large group rates, executive level HR and Risk Management expertise, and HRIS systems and technology platforms that are either unavailable or too expensive for the average small and midsized employer.

Bruce Silver
Founder and Managing Member
Employers Rx LLC
http://employers-Rx.com
http;//peo-quote.com

[Interested Reader]

Valid point. There is some good info about PEOs and some of their services, and event some content about management at http://www.peoinfo.com.

[Mike Burgelin]

A PEO service provider can be a strong partner in assuming your payroll, benefit and worker’s compensation administrative burdens. But PEO services are not all alike! Each employee leasing company has its own available options, so it is extremely important that an employer knows which benefits are most important to his/her company. If you need a true independent resource to answer questions, provide a free cost analysis (that you can understand), or explore benefits your company needs – call us. If we can’t help, you’ll leave knowing why, and we’ll do everything to refer you to a service that can. We can be reached at 1-888-582-8388 or www.EmployeeLeasingQuotes.com.