Recruiting Trend - PEO Professional Employment Organizations
Tuesday, January 8, 2008 at 04:12AM 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.


Reader Comments (4)
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
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http://employers-Rx.com
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