POINTS TO PONDER

Here are some interesting quotes about PEO's

"Is a 'Professional Employer Organization' in Your Future?" National Public Accountant, May 2003.

"A PEO offers a much wider selection of benefits often at a considerably lower cost due to the large numbers of employees in its pool. PEOs and their clients enjoy the economies of scale usually reserved for only the largest employers."

Hampton Roads Business Journal 5-22-06

"A PEO can provide a really good solution for small businesses. It allows them to concentrate on what they do best. By supplying experts in human resources administration and compliance, a company can save time and money while reducing employer-related liabilities. At the same time, it helps set the company apart from its competitors by giving it a recruiting and retention advantage and helps protect its workforce."

USA Today April 2006

"Medical costs were cited as small businesses' No. 1 problem in a survey last month of 471 owners by the National Federation of Independent Business trade group. PEOs combine small employee groups into bigger "pools" to get buying clout. Buying insurance in volume, average premiums for clients rose just 3% this year versus the overall average of 9.2% posted in a recent survey."

San Antonio Express News January 2006

"The exciting thing about this industry is that it's one where these companies can not only provide a service, but also be involved in changing the way America does business," said Milan Yager, executive vice president of the National Association of Professional Employer Organizations.

About 700 PEOs nationwide handle benefits packages for an estimated 2 million to 3 million American workers, according to the association.

"Businesses for years have outsourced their accounting or their payroll or their insurance or their legal work, but they've done it to different vendors," Yager said. "The PEO arrangement is the only opportunity to use a single vendor for all of those needs."

In partnering with those companies, it assumes some of the risks and responsibilities that come with being an employer. That means keeping up with changing government regulations, updating employee handbooks and handling worker's compensation claims, clearing the way for business owners to focus on other tasks.

"Most business owners get into business because they have a passion for it," Fitch said. "They don't want to spend their time handling administrative duties and compliance issues."