Peo Fit

426 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
426
On SlideShare
0
From Embeds
0
Number of Embeds
8
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Peo Fit

  1. 1. PEO: A Fit for You? PEO: A Fit for You? Presented by: eESI Steven Hookstra
  2. 2. Agenda <ul><li>What is a PEO? </li></ul><ul><li>Interesting statistics!! </li></ul><ul><li>PEOs - Solution to business administration needs </li></ul><ul><li>Are all PEOs created the same? </li></ul><ul><li>PEO: A Fit for you? </li></ul><ul><li>Even PEOs Love Healthcare Reform </li></ul><ul><li>How do they get those cheap insurance rates? </li></ul><ul><li>PEOs Focus on the Future </li></ul>PEO: A Fit for You?
  3. 3. What is a PEO? <ul><li>P rofessional E mployer O rganizations </li></ul><ul><li>Enable clients to cost-effectively outsource </li></ul><ul><ul><li>Management of human resources </li></ul></ul><ul><ul><li>Worker’s Compensation / </li></ul></ul><ul><ul><li>Risk Management </li></ul></ul><ul><ul><li>Employee benefits </li></ul></ul><ul><ul><li>Payroll administration </li></ul></ul><ul><li>Clients focus on their core competencies </li></ul><ul><ul><li>Drive innovation, productivity and profits </li></ul></ul>PEO: A Fit for You?
  4. 4. PEO: A Fit for You? <ul><li>What is a PEO? </li></ul><ul><li>Co-Employment </li></ul><ul><li>Contractual Agreement (CSA) </li></ul><ul><li>Sharing of Employment Responsibilities: </li></ul><ul><ul><li>Between PEO / Client / Employee </li></ul></ul><ul><ul><li>Employer of Record </li></ul></ul><ul><ul><li>Grouping of these employment responsibilities </li></ul></ul><ul><ul><ul><li>Administration, Efficiencies and Innovation </li></ul></ul></ul>
  5. 5. PEO: A Fit for You?
  6. 6. What is a PEO? <ul><li>License Requirements established by each state </li></ul><ul><li>Regulated by the Department of Insurance </li></ul><ul><li>SUI Account </li></ul><ul><ul><li>Utilization of PEO experience modifier </li></ul></ul><ul><ul><ul><li>Some states do require client modifier </li></ul></ul></ul><ul><li>Worker’s Compensation </li></ul><ul><ul><li>Non – Monopolistic State </li></ul></ul><ul><ul><ul><li>Private insurers </li></ul></ul></ul><ul><ul><ul><li>Self-insurance allowed </li></ul></ul></ul><ul><ul><ul><li>Texas is the “Lone Star” state; allows opting out of the system </li></ul></ul></ul>PEO: A Fit for You?
  7. 7. Statistics!!! <ul><li>Relatively new industry ~ 30 years </li></ul><ul><li>Over 700 PEOs </li></ul><ul><li>78 Billion dollars in revenue </li></ul><ul><li>40+ Accredited through ESAC </li></ul><ul><li>Average client size ~ 19 employees </li></ul><ul><li>Average wages $34,000 </li></ul><ul><li>2-3 million employed under a PEO relationship </li></ul>PEO: A Fit for You?
  8. 8. PEO: A Fit for You?
  9. 9. PEO: A Fit for You?
  10. 10. PEO: A Fit for You?
  11. 11. PEO: A Fit for You? PEOs – Solutions to Business Administration Needs
  12. 12. PEOs - Solutions to Business Administration Needs <ul><li>HR infrastructure and technologies </li></ul><ul><li>Mitigate employment risk </li></ul><ul><ul><li>Sharing of most employment liabilities </li></ul></ul><ul><li>Compliance of regulations and future challenges </li></ul><ul><li>Bundle of products and services </li></ul><ul><ul><li>Increase profitability </li></ul></ul><ul><li>Ultimately reducing cost and focusing on your business </li></ul><ul><ul><li>Maximize productivity </li></ul></ul><ul><li>What have we failed to say? </li></ul><ul><li>Enhance benefit offerings </li></ul>PEO: A Fit for You?
  13. 13. PEO: A Fit for You? Are All PEOs Created the Same?
  14. 14. Are All PEOs Created the Same? <ul><li>All-Inclusive vs Carve out </li></ul><ul><li>National vs Regional </li></ul><ul><li>Accredited vs Non-Accredited </li></ul><ul><li>Licensed vs Non-Licensed </li></ul><ul><li>Large vs Small </li></ul><ul><li>How do they manage risk? </li></ul>PEO: A Fit for You?
  15. 15. PEO: A Fit for You? <ul><li>Leadership and Culture </li></ul><ul><ul><li>Disney Michael Eisner vs Robert Iger </li></ul></ul><ul><ul><li>Smaller vs Larger agencies </li></ul></ul><ul><li>Insurance agents and brokerage firms </li></ul><ul><ul><li>Partnering with PEO opportunities </li></ul></ul><ul><ul><ul><li>Larger regional insurance companies </li></ul></ul></ul><ul><ul><ul><ul><li>Partnering with PEOs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Buying PEOs </li></ul></ul></ul></ul><ul><ul><ul><li>Why? Because it extends products and services within their business model and adds value to current relationships </li></ul></ul></ul>PEO: A Fit for You?
  16. 16. PEO: A Fit for You? <ul><li>Questions </li></ul><ul><li>Whose client is it? </li></ul><ul><li>Will I lose control? </li></ul><ul><li>Is there revenue sharing? </li></ul><ul><li>Can I keep my current benefits? </li></ul><ul><li>Who holds the AOR? </li></ul><ul><li>Who services the account? </li></ul><ul><li>Is the PEO accredited? </li></ul><ul><li>What are the competitive advantages of your PEO? </li></ul>PEO: A Fit for You?
  17. 17. PEO: A Fit for You? Even PEOs Love Health Care Reform
  18. 18. Even PEOs Love Health Care Reform <ul><li>Impact on PEOs </li></ul><ul><li>How are they complying with the Act? </li></ul><ul><ul><li>Small business tax credits </li></ul></ul><ul><ul><li>Grandfathered plans </li></ul></ul><ul><ul><li>Altered plans to comply with current regulations </li></ul></ul><ul><li>Questions </li></ul><ul><ul><li>Management carve outs </li></ul></ul><ul><ul><li>Individual mandates </li></ul></ul><ul><ul><li>Exchanges </li></ul></ul><ul><ul><li>Pre – Existing Conditions </li></ul></ul><ul><ul><li>W-2 Reporting </li></ul></ul><ul><ul><li>MLR </li></ul></ul>PEO: A Fit for You?
  19. 19. How Do They Get Those Cheap Insurance Rates? <ul><li>Multi-employer plans </li></ul><ul><ul><li>Spread the risk </li></ul></ul><ul><ul><li>Underwriting guidelines </li></ul></ul><ul><ul><li>Design own plans </li></ul></ul><ul><ul><li>Uncertain how Healthcare Reform will impact </li></ul></ul><ul><li>Consumer driven health plans </li></ul><ul><li>HRA/HSA/ GAP products/ </li></ul><ul><li>Supplemental insurance </li></ul><ul><li>Strategic alliances with brokers </li></ul>PEO: A Fit for You?
  20. 20. PEOs Focus on the Future <ul><li>Change </li></ul><ul><li>Focus on service and strategy </li></ul><ul><li>Growth and increase in competition </li></ul><ul><li>Mergers and acquisitions </li></ul><ul><li>Growth in PEO market share </li></ul>PEO: A Fit for You?
  21. 21. PEO: A Fit for You? <ul><li>Web: www.eesipeo.com/peopletalk_eevents </li></ul><ul><li>Facebook: www.facebook.com/eEmployersSolutions </li></ul><ul><li>LinkedIn: www.linkedin.com/company/eesi </li></ul><ul><li>Steven Hookstra: [email_address] </li></ul>

×