In the 2013 report, “Professional Employer Organizations: Fueling Small Business Growth,” a comprehensive analysis of existing economic data showed that small businesses in PEO arrangements have higher growth rates than other small
businesses, and small business executives who use PEOs are better able to focus their attention on the core business. In further exploring the impact of PEOs and their potential to help small businesses better meet the challenges of today’s
demanding economic conditions, this follow-up study examines employee turnover and business survival rates for businesses using PEOs and compares them to national data available from the U.S. Bureau of Labor Statistics (BLS). Applying a variety of different data specifications, we consistently found that PEO clients have lower employee turnover rates and lower rates of business failure than comparable national averages, after controlling for factors such as industry, size, and state of location.
Rewriting the code of Life Sciences CRE: 2014 Corporate real estate trends fo...JLL
This report analyzes the responses of life sciences CRE executives to JLL’s 2013 Global Corporate Real Estate Survey. Their views point to some alignment challenges for the CRE function in the industry while emphasizing extremely high demands for optimizing portfolios that shift across geographies.
Employer-sponsored insurance is the leading source of health insurance in America, covering about 149 million non-elderly people. To provide current information about the nature of employer-sponsored health benefits, the Kaiser Family Foundation (Kaiser) and the Health Research & Educational Trust (HRET) conduct an annual national survey of nonfederal private and public employers with three or more workers. This is the fourteenth Kaiser/HRET survey and reflects health benefitinformation for 2012.
The key findings from the survey,conducted from January through May 2012, include modest increases in the average single and family insurance premiums and little change in the premium contributions and cost sharing that workers face since last year. Enrollment in high deductible plans with a savings option, such as a health savings account or health reimbursement arrangement, did not increase significantly over the
previous year for the first time since 2009. The share of workers in a grandfathered
health plan decreased significantly from the previous year to 48% of covered
workers. Approximately 2.9 million adult children who were previously not eligible
for benefits now have health insurance coverage through their parents due to
the Affordable Care Act. In addition, the 2012 survey includes questions on
employer wellness programs, including the percentage of plans with financial rewards
or penalties for completing health programs or achieving biometric targets.
Authors: • Claxton G, Rae M, Panchal N, Damico A, Whitmore H, Bostick N, Kenward K
Rewriting the code of Life Sciences CRE: 2014 Corporate real estate trends fo...JLL
This report analyzes the responses of life sciences CRE executives to JLL’s 2013 Global Corporate Real Estate Survey. Their views point to some alignment challenges for the CRE function in the industry while emphasizing extremely high demands for optimizing portfolios that shift across geographies.
Employer-sponsored insurance is the leading source of health insurance in America, covering about 149 million non-elderly people. To provide current information about the nature of employer-sponsored health benefits, the Kaiser Family Foundation (Kaiser) and the Health Research & Educational Trust (HRET) conduct an annual national survey of nonfederal private and public employers with three or more workers. This is the fourteenth Kaiser/HRET survey and reflects health benefitinformation for 2012.
The key findings from the survey,conducted from January through May 2012, include modest increases in the average single and family insurance premiums and little change in the premium contributions and cost sharing that workers face since last year. Enrollment in high deductible plans with a savings option, such as a health savings account or health reimbursement arrangement, did not increase significantly over the
previous year for the first time since 2009. The share of workers in a grandfathered
health plan decreased significantly from the previous year to 48% of covered
workers. Approximately 2.9 million adult children who were previously not eligible
for benefits now have health insurance coverage through their parents due to
the Affordable Care Act. In addition, the 2012 survey includes questions on
employer wellness programs, including the percentage of plans with financial rewards
or penalties for completing health programs or achieving biometric targets.
Authors: • Claxton G, Rae M, Panchal N, Damico A, Whitmore H, Bostick N, Kenward K
The aims of the paper are to study the financial performance between the independent finance companies and the
integrated finance companies over the period 2001-2011.
Our latest biopharma-partnering survey highlights the qualities that sell-side companies are looking for in a licensing partner and ranks the industry’s top-tier partners.
View our infographic for highlights from the survey: http://on.bcg.com/14BlGJ8.
Managing Supply Chain Talent During the PandemicLora Cecere
With one out of two supply chain professionals satisfied with their jobs and an increase in job opportunities for supply chain leaders post-pandemic, is supply chain talent your greatest risk? In this report, Supply Chain Insights captures insights from studies conducted in 2019 and 2020 to give insights for supply chain leaders on retaining employees and improving job satisfaction.
Effect of Financial Ratios on Firm Performance Study of Selected Brewery Firm...ijtsrd
The study assessed the effect of financial ratios on performance of Quoted Breweries firms in Nigeria. It made use of ex post facto research design. Data were gotten from secondary sources obtained from NSE fact books and annual reports accounts of the selected Breweries Companies. The population of the study consisted of thirteen 13 quoted Breweries firms listed on the Nigerian Stock Exchange as at 31st December, 2018. Four 4 of the quoted Breweries firms are selected to form the sample of the study for the period of nine 9 years 2010 – 2018 . The relevant data obtained were subjected to statistical analysis using Pearson correlation coefficient and regression analysis. The results of this study revealed that there is a significant relationship between current ratio and firm performance but negative effect. Debt equity ratio has a significant effect on return on asset of Nigerian Breweries. The result of the study concludes that Nigerian breweries companies are relatively using an optimal mix of debt to equity which is evident from the significant positive relationship of debt equity ratio with financial performance of the Nigerian Breweries. The researchers recommended that the management should employ all carefulness while financing with long term debt instruments endeavor to find out the best and optimal combination of long term debt and equity that will impact positively on the value of the firm. Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George "Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45177.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45177/effect-of-financial-ratios-on-firm-performance-study-of-selected-brewery-firms-in-nigeria/agbata-amaka-elizabeth
Importance of High Availability for B2B e-CommerceSteve Keifer
This white paper explains how B2B e-Commerce technologies have become so critical to manufacturing and retail companies that further investment is required in high availability architectures.
Topic: Ratio Analysis
Type: Essay
Subject: Accounting and Finance
Academic Level: Undergraduate Style: APA Language: English (U.S)
Number of pages: 3 (double spaced, Times New Roman, Font 12)
Number of sources: 3
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Vencon Research is a trusted global provider of compensation (salary) benchmarking data to the world’s leading management, IT and strategy consulting firms.
Vencon Research specialises in the niche area of consulting compensation packages with more than 20 years’ worth of data and trend analysis.
In order to make informed decisions about compensation packages in your field, you need the latest data at your fingertips.
We work to a core set of values that are designed entirely around delivery:
Accuracy – Information is HR-based and cross-checked with HR managers.
Detail – Remuneration information is presented for all of the major career sub-levels and remuneration components.
Validity – Vencon uses and presents only the most up-to-date information.
Timeliness – Vencon Research surveys are produced up to twice per annum, but bespoke surveys can be produced on demand at any time.
Ease of use – Reports can be delivered in a variety of formats to suit the specific needs of the client and to facilitate onward briefing.
Data security – Vencon Research uses internationally verified procedures and systems to ensure the anonymity of participants.
Added value – Vencon surveys facilitate a true balanced remuneration position to ensure competitiveness and staff retention without risking wastage in over compensating.
Primary data provider – Vencon Research surveys provide the most comprehensive source of remuneration data for the international consulting environment, fuelled by a ‘virtuous circle’ of increasing participation.
Click on the following link to find out more and donwloand our sample reports: https://venconresearch.com/samplesurveys/
Effects of age, size, sponsor and government shareholdings on profitability: ...Md. Atiqullah Khan
ABSTRACT
Purpose- This paper aims at investigating the effects of age, size, fixed assets utilization, sponsor and government shareholdings on the profitability of engineering industry of Bangladesh for the period of 2000-2019.
Methodology- This paper analyzed 37 out of 39 companies under engineering industry listed on Dhaka Stock Exchange. Fixed effects model has been applied after deciding this from Hausman test to estimate the effects of age, size, fixed asset utilization, sponsor and government shareholdings on the profitability.
Findings- Size, fixed asset utilization, and sponsor shareholding have significant impact on profitability. While fixed asset utilization has positive
impact and age, size, sponsor shareholding and government shareholding have negative impact on it. Mixed influences of learning effect and size effect are experienced among the firms.
Conclusion- The findings from the analysis are diversified in nature. The investors and policy makers should have in depth insight to make better
decision.
Keywords: Age effect, size effect, shareholding, profitability, engineering.
JEL Codes: D21, G32, L25
What Drives Inventory Effectiveness in a Market-Driven World? Summary ChartsLora Cecere
Survey Details: The research for this report was conducted from February 12 – October 8, 2015. Surveys were conducted among Manufacturers, Retailers, and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who use (and are familiar with) inventory optimization software (n=64). Respondents were evenly split between those using basic (ERP or ERP+APS) and advanced (software in addition to ERP/APS) software. All surveys were conducted by Supply Chain Insights.
Objective: To understand the impact of inventory optimization software on supply chain excellence. NOTE: inventory optimization software was defined as “any form of ERP (Enterprise Resource Planning), APS (Advanced Planned Software), or sophisticated inventory planning tools.”
Highlight: Companies who use advanced software are more likely to be satisfied with their software, to be effective at making inventory decisions and to drive a return on investment for their software.
Should You Use a Professional Employer Organization? Top Factors to ConsiderInsideUp
When executives were asked, “What do you think will be the biggest investment challenge facing organizations over the next ten years?” For 47% of respondents, the answer was, “Obtaining human capital and optimizing human capital
investments.” Learn how a PEO can help you build a stronger company, and how to choose a good fit for your business
The aims of the paper are to study the financial performance between the independent finance companies and the
integrated finance companies over the period 2001-2011.
Our latest biopharma-partnering survey highlights the qualities that sell-side companies are looking for in a licensing partner and ranks the industry’s top-tier partners.
View our infographic for highlights from the survey: http://on.bcg.com/14BlGJ8.
Managing Supply Chain Talent During the PandemicLora Cecere
With one out of two supply chain professionals satisfied with their jobs and an increase in job opportunities for supply chain leaders post-pandemic, is supply chain talent your greatest risk? In this report, Supply Chain Insights captures insights from studies conducted in 2019 and 2020 to give insights for supply chain leaders on retaining employees and improving job satisfaction.
Effect of Financial Ratios on Firm Performance Study of Selected Brewery Firm...ijtsrd
The study assessed the effect of financial ratios on performance of Quoted Breweries firms in Nigeria. It made use of ex post facto research design. Data were gotten from secondary sources obtained from NSE fact books and annual reports accounts of the selected Breweries Companies. The population of the study consisted of thirteen 13 quoted Breweries firms listed on the Nigerian Stock Exchange as at 31st December, 2018. Four 4 of the quoted Breweries firms are selected to form the sample of the study for the period of nine 9 years 2010 – 2018 . The relevant data obtained were subjected to statistical analysis using Pearson correlation coefficient and regression analysis. The results of this study revealed that there is a significant relationship between current ratio and firm performance but negative effect. Debt equity ratio has a significant effect on return on asset of Nigerian Breweries. The result of the study concludes that Nigerian breweries companies are relatively using an optimal mix of debt to equity which is evident from the significant positive relationship of debt equity ratio with financial performance of the Nigerian Breweries. The researchers recommended that the management should employ all carefulness while financing with long term debt instruments endeavor to find out the best and optimal combination of long term debt and equity that will impact positively on the value of the firm. Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George "Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45177.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45177/effect-of-financial-ratios-on-firm-performance-study-of-selected-brewery-firms-in-nigeria/agbata-amaka-elizabeth
Importance of High Availability for B2B e-CommerceSteve Keifer
This white paper explains how B2B e-Commerce technologies have become so critical to manufacturing and retail companies that further investment is required in high availability architectures.
Topic: Ratio Analysis
Type: Essay
Subject: Accounting and Finance
Academic Level: Undergraduate Style: APA Language: English (U.S)
Number of pages: 3 (double spaced, Times New Roman, Font 12)
Number of sources: 3
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Vencon Research is a trusted global provider of compensation (salary) benchmarking data to the world’s leading management, IT and strategy consulting firms.
Vencon Research specialises in the niche area of consulting compensation packages with more than 20 years’ worth of data and trend analysis.
In order to make informed decisions about compensation packages in your field, you need the latest data at your fingertips.
We work to a core set of values that are designed entirely around delivery:
Accuracy – Information is HR-based and cross-checked with HR managers.
Detail – Remuneration information is presented for all of the major career sub-levels and remuneration components.
Validity – Vencon uses and presents only the most up-to-date information.
Timeliness – Vencon Research surveys are produced up to twice per annum, but bespoke surveys can be produced on demand at any time.
Ease of use – Reports can be delivered in a variety of formats to suit the specific needs of the client and to facilitate onward briefing.
Data security – Vencon Research uses internationally verified procedures and systems to ensure the anonymity of participants.
Added value – Vencon surveys facilitate a true balanced remuneration position to ensure competitiveness and staff retention without risking wastage in over compensating.
Primary data provider – Vencon Research surveys provide the most comprehensive source of remuneration data for the international consulting environment, fuelled by a ‘virtuous circle’ of increasing participation.
Click on the following link to find out more and donwloand our sample reports: https://venconresearch.com/samplesurveys/
Effects of age, size, sponsor and government shareholdings on profitability: ...Md. Atiqullah Khan
ABSTRACT
Purpose- This paper aims at investigating the effects of age, size, fixed assets utilization, sponsor and government shareholdings on the profitability of engineering industry of Bangladesh for the period of 2000-2019.
Methodology- This paper analyzed 37 out of 39 companies under engineering industry listed on Dhaka Stock Exchange. Fixed effects model has been applied after deciding this from Hausman test to estimate the effects of age, size, fixed asset utilization, sponsor and government shareholdings on the profitability.
Findings- Size, fixed asset utilization, and sponsor shareholding have significant impact on profitability. While fixed asset utilization has positive
impact and age, size, sponsor shareholding and government shareholding have negative impact on it. Mixed influences of learning effect and size effect are experienced among the firms.
Conclusion- The findings from the analysis are diversified in nature. The investors and policy makers should have in depth insight to make better
decision.
Keywords: Age effect, size effect, shareholding, profitability, engineering.
JEL Codes: D21, G32, L25
What Drives Inventory Effectiveness in a Market-Driven World? Summary ChartsLora Cecere
Survey Details: The research for this report was conducted from February 12 – October 8, 2015. Surveys were conducted among Manufacturers, Retailers, and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who use (and are familiar with) inventory optimization software (n=64). Respondents were evenly split between those using basic (ERP or ERP+APS) and advanced (software in addition to ERP/APS) software. All surveys were conducted by Supply Chain Insights.
Objective: To understand the impact of inventory optimization software on supply chain excellence. NOTE: inventory optimization software was defined as “any form of ERP (Enterprise Resource Planning), APS (Advanced Planned Software), or sophisticated inventory planning tools.”
Highlight: Companies who use advanced software are more likely to be satisfied with their software, to be effective at making inventory decisions and to drive a return on investment for their software.
Should You Use a Professional Employer Organization? Top Factors to ConsiderInsideUp
When executives were asked, “What do you think will be the biggest investment challenge facing organizations over the next ten years?” For 47% of respondents, the answer was, “Obtaining human capital and optimizing human capital
investments.” Learn how a PEO can help you build a stronger company, and how to choose a good fit for your business
Sample side-by-side, fully broken out cost comparison of an existing client with a major PEO versus other competitive offers. This is one page of a 36 page report that outlines the level of detail you can expect when working with Onward Advisors.
Supply Chain Metrics That Matter: A Critical Look at Operating Margin -10 DEC...Lora Cecere
Executive Overview
If a supply chain leader cannot demonstrate improvement in operating margin, they are often fired. Consequences are severe. However, as complexity in global supply chains has increased, it has become increasingly difficult to improve profitability metrics. Among supply chain leaders, operating margin is one of the preferred measures of profitability.
Successful supply chain management is about balance and particularly the balancing of growth, profitability, cycle and complexity. This is what we call The Effective Frontier. Supply chain management is getting tougher as commodity markets get more volatile, wage prices increase, and product life cycles shorten. It is up to the supply chain leader to design the network and processes to protect margin and balance the supply chain. This is becoming an increasingly difficult task.
The challenges are many and they vary by industry. Commodity pressure is higher than at any previous point in time as shown in Figure 2. There is a limited toolkit for how to offset margin pressure. They include better planning, transportation optimization, rethinking network design, improved Sales & Operations (S&OP) execution, and Kanban events with suppliers and customers. None are easy or quick fixes.
Additionally, while many think that calculating cost and monitoring profitability should be easy, this is not true. In our research, we find that only 24% of companies surveyed can easily access total supply chain cost information. The ability to get to the data and connect the dots on cost to operating margin performance remains difficult for most. In fact, as shown in Figure 3, for 53% of survey respondents, getting to total supply chain cost is difficult.
Operating margin is a straightforward calculation with serious implications. Of the ten industries profiled in Table 1, only two have increased operating margin over the period: consumer electronics and consumer packaged goods. Furthermore, of the 18 companies profiled individually in this report, less than 40% (7/18 = 39%) have made progress on margin in 2012 compared to their result in 2000. As shown in Table 1, it is becoming more and more difficult for companies to maintain balance on their portfolio of supply chain metrics. This trend is true across all industry subgroups.
Companies with the highest operating margin tend to be the least mature in their understanding of supply chain principles. As a result, they demonstrate the worst performance in balancing competing priorities on the Supply Chain Effective Frontier and are stuck on the Supply Chain Plateau. The positions of companies, and their relative successes over the last decade, are shown in figure 4.
Table 1 is sorted by average operating margin with pharmaceutical companies returning the highest average value at 0.25 over the period. With the patent cliff, and significant changes in the healthcare environment including ongoing implementation of the Affordable Care Act, ...
A Playbook for Contending with the Medical Devices Excise TaxCognizant
Research shows that few device makers have offset the excise tax they began paying in January 2013; here's how they can reduce costs in targeted areas of SG&A in order to maintain profit margins.
Industry Averages and Financial Ratios PaperMicrosoft Corporatio.docxdoylymaura
Industry Averages and Financial Ratios Paper
Microsoft Corporation
Watch
the Industry Averages and Financial Ratios video and use the industry classification from the financial services website to locate the company's SIC code on the U.S. Department of Labor's website.
Find
the industry ratios for the company using the Dun & Bradstreet
®
Key Business Ratios link in the Week 2 Electronic Reserve Readings. If your company's SIC code does not appear in the dropdown menu, choose another company.
Assume
the inventory ratio is based on a traditional inventory system, but globalized markets and the supply chain make it critical to adopt lean principles to create a more efficient system.
Calculate
the 14 ratios (show your calculations) for the company using the two most recent annual financial statements found on the financial information website you used earlier. Be careful not to use quarterly information, and include ratios for both years.
Note.
You can access a downloadable Ratio Guide PDF by clicking the
Help Guide
link in the upper-right of the Dun & Bradstreet
®
Key Business Ratios window.
Compare
the ratios for the company you selected with the appropriate industry ratios including profitability, solvency, and efficiency ratios shown on the Dun & Bradstreet
®
report.
Write
a 350-word response about how the company you selected performed compared with the industry.
Company Quartiles
2009
2010
2011
Statement Sampling
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Samples: 0
Samples: 0
Profitability & Return Measures
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Return on Assets (%)
Solvency
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Liquidity
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Management Effectiveness
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Receivable Turnover
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Sales / Working Capital
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Bank & Insurance Ratios
Upper
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Return on Equ.
The Productivity Imperative: 2013 Corporate Real Estate Trends for Banking an...JLL
Perhaps more than any other industry, the financial services sector has been challenged by the simultaneous pressures of intense competition, increased regulation, and margin compression.Although profits are once again rising for some banks, it is clear that there are still many risks ahead. In this environment, an optimized corporate real estate platform is no longer an option, but a necessity.This report identifies the elements of our global report that are top of mind in the financial services industry, and it details the most pressing issues facing bank CRE executives.
The fifth edition of the World Insurance Report from Capgemini and Efma looks at how insurers are focusing their efforts on operational efficiency and effectiveness to protect and grow margins, even when demand is slow to increase. The report offers insights into how leading insurers are refocusing efforts to reduce both cost per policy and total cost of ownership, and acting to improve the operational efficiency of their business processes.
This published paper aggregates and segments the financial projections of client organizations in multiple industries derived by improving master data quality across the enterprise.
What do the Deep Water Horizon drilling rig and Texas City refinery have in common, they both were receiving safety awards on the day the catastrophic event happened...and they both likely had significant reliability issues. The correlation between safety and reliability is real and can't be ignored, and reliability encompasses far more than maintenance. If you want to operate safely, then you must develop and administer reliability programs as well as safety programs. A reliable plant is safe plant, is a cost effective plant. As explained in the following article, the correlation between reliability and safety as well as reliability and cost is undeniable.
2020 Software Company Benchmark Report - 132 CompaniesKelly Thomas
This is the 2020-1 version. This will be updated regularly throughout the year based on new financials and market cap information.
Benchmark analysis of 132 publicly-traded software companies. Includes growth rates, gross margin, market capitalization, EBITDA, sales and marketing investment, R&D investment, G&A, stock compensation, operating income, revenue per employee, historical analysis, IPO analysis, free cash flow, and cash position, along with market cap correlation analysis and many others.
: All companies are the topic to the bankruptcy risks. If we look at the definition, a bankruptcy risk is
the business’ disability to deal with payable responsibilities. In the recent past, as a consequence of the
dynamization of the financial and economic action of different firms, it has become essential to obtain precise
information about bankruptcy. T
The Added Value of Business Consolidationeprentise
While there is little argument that technical consolidation yields significant benefits, business consolidation promises a much broader ROI that impacts not just the IT organization, but the operational and business side of the enterprise as well.
View the original Blog post: http://www.eprentise.com/blog/return-on-investment-analysis/the-added-value-of-business-consolidation/
Website: www.eprentise.com
Twitter: @eprentise
Google+: https://plus.google.com/u/0/+Eprentise/posts
Facebook: https://www.facebook.com/eprentise
Ensure your data is Complete, Consistent, and Correct by using eprentise software to transform your Oracle® E-Business Suite.
Similar to Professional Employer Organizations: Keeping Turnover Low and Survival High (20)
G&A Partners Webinar: Legal Pitfalls to Avoid During the Hiring ProcessG&A Partners
f you’ve had any experience hiring employees, you know that there’s no shortage of things that can go wrong during the hiring process: you might miss out on the best candidate; you might hire someone who doesn’t fit in to your organization, or, worst of all, you might say or do something that leaves you and your employer open to a lawsuit. While no company’s hiring process is perfect, by implementing and following carefully constructed hiring policies and procedures, you can ensure that both you and your employer are protected from costly litigation.
This webinar, hosted by Sean O’Donnell, one of G&A Partners' experienced HR advisors, explains how to avoid some of the most common pitfalls of the hiring process, including:
• Labor and employment laws associated with each stage of the hiring process;
• How to create and enforce legally compliant hiring policies and procedures;
• How to improve your hiring process while protecting your organization from discrimination charges.
What's Going on in Labor and Employment Law: 2016 and BeyondG&A Partners
What’s trending in the world of human resources compliance? Get the inside scoop on the hottest topics in labor and employment law from a board-certified expert in this fast-paced webinar program.
How to Respond to Active Shooter Incidents in the Workplace G&A Partners
Over the past few months, coverage of mass shootings at Umpqua Community College in Roseburg, Oregon, and the Inland Regional Center in San Bernardino, California, has gripped the country and shone a national spotlight on what law enforcement calls “active shooter incidents.” According to a report released by the FBI, the most likely places for an active shooter incident to occur are commercial businesses, a fact that has many employers worried about the safety of their employees and customers.
Helping Employees Find a Work-Life BalanceG&A Partners
It’s no secret that the composition and needs of today’s workforce is completely different than that of 50 years ago, or even 20 years ago. With so many more demands on their time, it’s no wonder that the majority of employees struggle to balance their personal and professional responsibilities. Why should employers care? Employees who feel overworked are generally unhealthier, unhappier, less productive and more prone to absenteeism than employees who have achieved a work-life balance, and can negatively impact an organization’s overall performance.
G&A Webinar: Religion in the Workplace: January 2016 G&A Partners
Today's workforce is made up of individuals with varying and sometimes conflicting opinions about appropriate religious expression, particularly in the workplace. Because religion can be so deeply personal, disagreements tend to be uncomfortable, especially when emotions run high. In this atmosphere, employers may face challenging questions as they attempt to balance the rights of employees and the needs of the business, and be uncertain of what actions or policies they can and cannot implement to address the issue of religion.
Join us for a free webinar on Thursday, January 28 at 11 a.m. CST as Sean O’Donnell, one of our experienced HR advisors, explores the dos and don’ts of how to handle religion in the workplace.
Attendees of this free webinar will:
• Learn about the legal background of this issue, including federal regulations, case law and best practices;
• Explore an in-depth look at all issues of religion in the workplace: discrimination, harassment, accommodation and inclusion; and
• Come away with knowledge and practical strategies to deal with situations that may arise concerning religion in the workplace.
In this webinar, our HR expert reviewed the purpose and definition of the Family Medical Leave Act (FMLA), the rights and responsibilities of both employees and employers under FMLA, as well as how to recognize potential reasons for covered leave and what necessary steps you can take as outlined under FMLA.
In the work-centered world that we live in today, employees can more easily face burnout. Not only does this lead to detrimental mental, physical, and emotional health issues for the employee, it also has the potential to adversely impact the quality of their work, the work environment, and the overall business as a whole. This webinar covers risk factors that lead to burnout, how to identify burnout in employees, and how to mitigate the circumstances that can lead to burnout.
Preparing For The Affordable Care Act In 2016G&A Partners
Two of G&A Partners' Health Care Reform Specialists review potential strategies heading into 2016 that employers can use to ensure your business remains compliant with the employer provisions and mandate of the Affordable Care Act.
Discussion topics will include:
> The changes going into effect next year for employers with 50 or more full-time equivalent employees.
> The pending IRS reporting requirements employers will need to comply with.
> G&A Partners' ACA compliance tools and services.
Taking time to set and communicate performance objectives seems to overwhelm all managers at one point or another. In this webinar, Denise Macik, one of G&A Partners’ HR experts, will discuss the purpose of effective expectation discussions, how set performance goals and communicate them with your team, and provide guidance on how to handle tough situations that may happen during a discussion about performance.
Best Practices When Issuing Discipline and TerminationsG&A Partners
If you ask any manager what their least favorite part of their job is, odds are one of the top answers will be about firing or reprimanding employees. Having to terminate or discipline an employee is perhaps one of the most uncomfortable and unpleasant parts of being a manager. In this webinar, Sean O'Donnell, one of G&A Partners' HR experts, will talk about some best practices and potential legal pitfalls for managers when issuing employee disciplinary actions and terminations.
Building an effective safety culture editsG&A Partners
Join us as we offer proven solutions and techniques that encourage company-wide buy in for your safety initiatives. We will discuss the benefits of empowering your employees to take personal responsibility for their own safety, as well as the safety of those around them. Topics will include incentive programs, visual safety, and behavioral-based safety programs.
The traditional model for performance appraisals is proving to cause more problems than employers intended. Studies show that performance appraisals typically yield skewed results, have the ability to psychologically impact the employees, and are time-consuming with little ROI. In this webinar we will discuss:
• Specific problems with the traditional performance appraisal system affecting employees, managers, and the organization as a whole
• Effective tools that have been proven to accurately measure performance with valid outcomes
• Why employers should move away from the traditional performance appraisal model and move towards the performance management model
Recruitment Process Outsourcing WebinarG&A Partners
Host: Jose Laurel - Director of Recruitment Services G&A Partners
Recruitment Process Outsourcing (RPO) is a form of business where an employer transfers all or part of its recruitment processes to an external provider. This webinar is intended for recruiters, hiring managers, business owners and executives.
Understand the meaning of Recruitment Process Outsourcing. Become familiar with the multiple components
Determine how an RPO can be utilized in their organizations. Recognize that RPO is not just one process but a series of processes that can be used as needed
Answer the questions, do we have a recruiting process that works, or do we need to explore RPO options. Learn the benefits that an RPO can have on their organization.
Identify how to build alignment between recruitment efforts and corporate strategy. Seek next steps to improve recruiting and be creative in a competitive employee driven market
This program will cover the hottest topics in labor and employment law for 2015, including EEOC’s strategic initiatives, recent wage and hour developments, the NLRB’s encroachment into the non-union workplace, policy issues to consider in the year ahead, continuing questions about social media challenges, and more. This program will be a fast-paced look at these and various other trends that will impact employers this year and beyond, and will be aimed at enabling participants to get ahead of the curve to identify potential risks within their organizations.
• Goals for this webinar - Agenda
• Agency Update
• EEOC Strategic Initiatives
• Medical Issues in the Workplace
• Wage and Hour Developments
• The NLRB in Your Workplace
• Social Media Challenges
• Unemployment
• Reminders and Next Steps
G&A Partners Webinar - Respect in the workplaceG&A Partners
Maintaining respect and civility is a key component of creating a positive work environment. In this webinar, Vance Daniels, SPHR, will discuss how to identify and deal with conflict, harassment and discrimination, and what supervisors can do to promote respect in the workplace.
Resolving interpersonal conflict in the workplace
Recognizing and reporting harassment & discrimination
Handling complaints and taking corrective action
Please join us for a G&A sponsored webinar with our outside counsel and nationally recognized expert on the Affordable Care Act, Seth Perretta of Groom Law Group, Chartered. Seth Perretta, who is located in Washington, DC and represents many employers and insurers (as well as the American Benefits Council (ABC) and America’s Health Insurance Plans (AHIP)), will provide an overview of what employers should be thinking about in 2015 with respect to the ACA. Seth will discuss, in part, the following:
Immediate issues of concern for employers who need to comply with the employer mandate as of January 1, 2015
Pitfalls for small employers with respect to the ACA, including compliance risks associated with small employers seeking to reimburse employees for their out-of-pocket medical expenses, including individual insurance premiums
The future of the high-cost “Cadillac Tax” provision and its likely effects on employer plans
The Supreme Court’s highly anticipated decision in King v. Burwell, and its potential to dismantle the ACA
Recent legislative activity related to health reform back in Washington, DC and the likelihood that this activity will lead to changes in the rules that govern your employer benefit plan offerings
Avoiding Unwanted Scrutiny Against Unemployment Insurance LawsG&A Partners
New conditions by the Federal government require all states to pass legislation to punish employers (or their agent’s) for demonstrating a pattern of failure to adequately respond to state UI information requests.
Employer responses to unemployment insurance claims is no longer a situation in which they can choose not to respond, but rather a requirement that must be performed by employers in order to be in compliance with these changes.
This webinar serves to educate the participants in explaining how and why this action by the federal government occurred and how to respond to these new changes.
An HR audit is a means of assessing a company's level of compliance with federal and state laws that measures the effectiveness of your HR policies and practices. In this webinar we will discuss employee relations, employee classification, job descriptions, and the interview process.
In the past, in-house human resources professionals and Professional Employer Organizations (PEOs) have had a rocky relationship. The main cause of this rift has been the belief that PEOs are out to replace in-house HR. G&A Partners, a Texas-based PEO, takes a closer look at this long-held - but completely false - myth, and explains why HR professionals should embrace, not fear, the services that Professional Employer Organizations offer.
Webinar- Recruitment Process OutsourcingG&A Partners
Recruitment Process Outsourcing (RPO) is a form of business where an employer transfers all or part of its recruitment processes to an external provider. This webinar is intended for recruiters, hiring managers, business owners and executives.
In this webinar you will:
Understand the meaning of Recruitment Process Outsourcing
Become familiar with the multiple components
Determine how RPO can be utilized in your organization
Recognize that RPO is not just one process but a series of processes that can be used as needed
Learn the benefits that RPO can have on your organization
Identify how to build alignment between recruitment efforts and corporate strategy
Seek next steps to improve recruiting and be creative in a competitive, employee-driven market
Watch this expert-led webinar to learn effective tactics that high-volume hiring teams can use right now to attract top talent into their pipeline faster.
Aashman Foundation Summer Internship .docxAmanHamza4
The internship opportunity I had with “Aasmaan Foundation” was a great chance for learning and professional development. Therefore, I consider myself a very lucky individual as I was provided with an opportunity to be a part of it. I am also grateful for having a chance to meet so many wonderful people and professionals who led me though this internship period.
I am using this opportunity to express my deepest gratitude and special thanks to “Munish Pundir” “Director “who despite being extraordinarily busy with “her/his” duties, took time out to hear, guide, and keep me on the correct path and allowing me to carry out my internship at their esteemed organization.
I further want to thank Prof. Shikha Gera, who helped me to better understand concepts of professionalism and become a better person and employee in my life.
I would also like to thank my parents and friends who helped me a lot during my life and this internship period. I perceive this opportunity as a big milestone in my career development. I will strive to use gained skills and knowledge in the best possible way, and I will continue to work on their improvement, to attain desired career objectives. Hope to continue cooperation with all of you in the future.
Accelerating AI Integration with Collaborative Learning - Kinga Petrovai - So...SocialHRCamp
Speaker: Kinga Petrovai
You have the new AI tools, but how can you help your team use them to their full potential? As technology is changing daily, it’s hard to learn and keep up with the latest developments. Help your team amplify their learning with a new collaborative learning approach called the Learning Hive.
This session outlines the Learning Hive approach that sets up collaborations that foster great learning without the need for L&D to produce content. The Learning Hive enables effective knowledge sharing where employees learn from each other and apply this learning to their work, all while building stronger community bonds. This approach amplifies the impact of other learning resources and fosters a culture of continuous learning within the organization.
Professional Employer Organizations: Keeping Turnover Low and Survival High
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Professional Employer
Organizations: Keeping
Turnover Low and Survival High
Produced by the National Association of
Professional Employer Organizations
Distributed By G&A Partners
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Executive Summary
The employee turnover rate for PEO clients is 10 to 14 percentage points lower per year
than that of comparable companies (see Table 1), depending on data specification.
The average overall employee turnover rate in the United States was approximately 42
percent per year, based on 2012 data. It is 28 to 32 percent for companies that used PEOs
for at least four quarters.
In the 2013 report, “Professional Employer Organizations: Fueling Small Business
Growth,” a comprehensive analysis of existing economic data showed that small
businesses in PEO arrangements have higher growth rates than other small
businesses, and small business executives who use PEOs are better able to focus
their attention on the core business. In further exploring the impact of PEOs and
their potential to help small businesses better meet the challenges of today’s
demanding economic conditions, this follow-up study examines employee turnover
and business survival rates for businesses using PEOs and compares them to
national data available from the U.S. Bureau of Labor Statistics (BLS). Applying a
variety of different data specifications, we consistently found that PEO clients have
lower employee turnover rates and lower rates of business failure than comparable
national averages, after controlling for factors such as industry, size, and state of
location.
Professional Employer Organizations:
Keeping Turnover Low and Survival High
Keeping Turnover Low and Survival High
Table 1. Average differences in actual and expected employee turnover rates, PEO
clients, 2012.
2012 (%)
Expected turnover rate (U.S. overall) 1
41.6
Difference for PEO clients, controlling for industry -9.7
Difference for PEO clients, controlling for company size group -13.5
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Businesses that use PEOs are approximately 50 percent less likely to fail (permanently
go “out of business”) from one year to the next when compared to similar companies in
the population as a whole (see Table 2). The overall business failure rate among private
businesses in the United States as a whole3
is approximately 8 percent per year, based on
2012 data. It is approximately 4 percent per year for those companies that used PEOs for at
least four quarters.
Data broken down by specific industries point to “Professional, Scientific, and Technical
Services,” “Construction,” and “Finance and Insurance” as being three industry categories
that disproportionately benefit from PEO services in both lower employee turnover rates
and lower business failure rates.
Across all industries, the results reflect clear advantages for PEO clients on two of the
most fundamental issues faced by any business: retention of employees and continued
survival.
PEOs significantly decrease employee turnover for their clients, allowing them to retain the
knowledge and skills of their employees, while simultaneously reducing direct and indirect
turnover-related costs (which are substantial). The fact that PEOs significantly increase the
likelihood of client survival is likely a result of PEOs providing a combination of services
that makes it possible for businesses to focus on their core areas of expertise.
Keeping Turnover Low and Survival High
Table 2. Average differences between actual and expected annual business failure rates,
PEO clients, using most conservative data specification.
Annual Business Failure Rate (%)
Expected business failure rate (U.S. overall) 2
8.0
Difference for PEO clients, controlling for industry -4.0
Difference for PEO clients, controlling for state -4.1
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Findings:
Employee Turnover Rates
Employee turnover generates a variety of costs to employers, both direct and indirect.
These include all costs related to hiring replacement employees, onboarding costs,
and opportunity costs incurred during the period when positions are vacant. For many
positions and many businesses, however, the (indirect) impact of losing the skills,
knowledge, and expertise of valued employees may be significantly larger than any other
(direct) turnover-related costs.
The exact cost of turnover is difficult to estimate, as it varies so significantly depending on
specifics. A frequently cited estimate based on a “Cost of Turnover” worksheet4
provided
by the Society for Human Resource Management (SHRM) is that costs are roughly 150
percent of the employee’s salary, with other calculations suggesting it is more than 200
percent for certain positions, such as managerial and sales jobs.5
At the other end of the
spectrum, alternative “conservative” calculations by O’Connell and Kung estimate
the average cost of replacing an employee to be roughly $14,000 each.6
Regardless of which estimate is used, it is clear that the costs of employee turnover are
quite significant, and that a business that enjoys a higher employee retention rate than its
competitors is in a stronger position to survive and thrive over the long term.
Keeping Turnover Low and Survival High
Table 3. Average differences in actual and expected employee turnover rates, PEO clients,
2012
2012 (%)
Expected turnover rate (U.S. overall) 7
41.6
Difference for PEO clients, controlling for industry -9.7
Difference for PEO clients, controlling for company size group -13.5
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Overall annual results for 2012 are reported in Table 3, with results reported by quarter
in Table 4. In 2012, PEO clients had annual employee turnover between 10 and 14
percentage points lower than the national average of 42 percent per year, depending on
the comparison group used.
We also analyzed differences by industry. We did not have sufficient numbers to reliably
calculate turnover differences for industries with fewer companies included in the analysis
data file, and due to small sample sizes, we view these industry split results as suggestive
rather than definitive. Figure 1 presents differences between expected and total employee
turnover9
by industry for the six largest industries10
in the analysis data. Among these
largest industries, we found that the largest salutary effects of PEOs on turnover rates
occurred in “Professional, Scientific, and Technical Services” (23 percentage points lower)
and “Construction” (17 percentage points lower). Smaller differences were observed in
“Manufacturing” (2 percentage points lower) and “Health Care and Social Assistance”
(6 percentage points lower).
Keeping Turnover Low and Survival High
Table 4. Average differences in actual and expected employee turnover rates, PEO clients,
by quarter.
2012 Q1 2012 Q2 2012 Q3 2012 Q4
Expected turnover rate (U.S. overall) 8
9.9 10.5 11.3 9.9
Difference for PEO clients, controlling for industry -3.1 -2.5 -3.3 -0.8
Difference for PEO clients, controlling for company size group -4.4 -3.6 -3.4 -2.1
Figure 1. Differences between actual and expected employee turnover rates, PEO clients, by
industry.
Percentage points by which PEO client’s employee turnover rate is lower than expected*
0.0 5.0 10.0 15.0 20.0 25.0
Prof, Sci,Tech
Services
Construction
Finance and
Insurance
Wholesale Trade
Health Care,
Social Assistance
Manufacturing
15.4
7.3
6.0
23.0
2.3
17.0
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Business Survival and Failure Rates
The ranges of aggregated actual versus expected survival values are reported in Table
5. The positive values throughout the table indicate that PEO clients are more likely
to survive, and less likely to fail, than similar companies in the population as a whole
(controlling for year of inception, analysis year, and other factors, as indicated in the
table), regardless of which analysis specification is being applied.
The survival data indicate that 8 percent of all businesses fail each year. For PEO clients,
the comparable percentage is between 2.1 and 4 percent, depending on the exact
specification. Thus, annual business failure rates among PEO clients range from 4 to 5.9
percentage points lower than the rates for the population as a whole (50 percent
or more lower). The results are quite consistent whether companies are compared to
expected survival for their respective industries or states. Even using the most conservative
analytic approach, the business failure rate is 50 percent lower for businesses using PEOs
than for businesses overall, as highlighted in Table 6.
Keeping Turnover Low and Survival High
Table 6. Average differences between actual and expected business failure rates (%),
PEO clients, by year, using most conservative specification.
2010 2011 2012 2013
Expected business failure rate (U.S. overall) 12
9.2 7.8 7.7 7.6
Difference for PEO clients, controlling for industry -6.2 -2.7 -4.2 -3.6
Difference for PEO clients, controlling for state -6.4 -2.8 -4.6 -3.3
Table 5. Average differences between actual and expected business failure rates (%), PEO
clients, multiple specifications.
Data Used in Analysis
Only companies More conservative Most conservative
with fully valid specification (also specification (also
corporate includes invalid includes additional
status data inactives) unknowns)
Expected business failure rate (U.S. overall) 11
8.0 8.0 8.0
Difference for PEO clients, controlling for industry -5.8 -4.3 -4.0
Difference for PEO clients, controlling for state -5.9 -4.4 -4.1
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It should be noted that the survival rates calculated for PEO clients reflect a relatively short
term effect of using PEO services (for example, the longest difference in the analysis file
between PEO use and calculated survival would be slightly over four years, for a firm using
PEOs for four quarters in 2008, and then having its survival assessed in 2013 Q1).
We also examined industry-specific differences to identify which industries see the largest
and smallest impacts from PEO services. We did not have sufficient numbers to reliably
calculate survival variations for industries with fewer companies included in the analysis
data file. Figure 2 presents differences between expected and total business failure rates13
by industry for the six largest industries available14
in the analysis data. Even for these
larger industries, due to the smaller sample sizes, we recommend viewing these results as
suggestive rather than definitive.
Among these largest industries, we found that the largest effects of PEOs on business
failure rates occurred in “Professional, Scientific, and Technical Services” (business failure
rate 6.3 percentage points lower than expected) and “Finance and Insurance” (5.8
percentage points lower). Smaller differences were observed in “Health Care and
Social Assistance” (0.8 percentage points lower) and “Manufacturing” (1.2 percentage
points lower).
Keeping Turnover Low and Survival High
Figure 2. Differences in actual and expected annual business failure rates, PEO clients, by
industry, using most conservative specification.
Percentage points by which PEO client’s business failure rate is lower than expected*
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
Prof, Sci,Tech
Services
Finance and
Insurance
Construction
Admin and
Waste Services
Manufacturing
Health Care,
Social Assistance
* Larger numbers indicate greater advantage for PEO clients in that industry (i.e., lower business failure rates).
5.7
5.3
1.2
6.3
0.8
5.8
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Analysis Specifications
Employee Turnover Rates
We selected a stratified random sample of 1,000 companies from the Slavic database for
analysis of employee
turnover rates.
(Because Slavic
firms tend to be
larger than average
establishments
nationally, we chose
a sample designed
to include a larger
percentage of the
smaller firms in the
Slavic database). To
enable quarterly
turnover analysis,
all companies in
the sample were
required to have at
least one employee
payroll record in
each quarter from
2012 Q1 to 2013
Q1. This allowed
us to analyze
employee turnover
for 2012, the most
recent full calendar
year available for
analysis in the Slavic
database.18
Based
on this definition,
turnover is being
calculated only for
companies that are current PEO clients.
We examined employee-level records from 2012 Q1 to 2013 Q1 for all employees for
each company included in the sample. The periodicity of payroll records varied across
companies; some reported multiple times per month for each employee, while others
reported less frequently.
Keeping Turnover Low and Survival High
Methodology
Data Used
The foundation of our data analysis was based
on data provided by Slavic401k, a major
third-party administrator of 401(k) retirement
plans that specializes in providing such plans
for PEO clients. Slavic’s large scope ensured that
these data represented a broad cross-section
of companies that use PEO services.The data
included more than 12 million employee payroll
records and more than 5,000 PEO client
companies from 2008 to 2013.
The Slavic data were used to determine the
following information about PEO client
companies:
• When PEO services were used;
• The number of unique employees, by
quarter (including information on whether
each employee remained employed from
one quarter to the next);
• Whether the company was known to be
active (i.e., still a Slavic client) as of the end
of 2013; and
• Basic company information (name, location,
and date of incorporation).
The data were then matched with additional
company level information, drawn from the
following sources:
• Dun & Bradstreet corporate database for
information on each company’s industry,
as well as supplemental information about
date of incorporation; and
• Separate state-level databases (typically
maintained by the office of the secretary
of state in each state)15
for information
about the current corporate status of those
companies that exited the Slavic database
before the end of 2013 (i.e., whether the
company is currently “active” or “
inactive”).16
Finally, we compared aggregated results from
the company-level data above to national
averages drawn from the following publicly
available BLS data:
• Business Employment Dynamics statistics
for year-to-year firm survival rates, based on
firm date of inception, and including
breakdowns by year, state, and industry; and
• Job Openings and Labor Turnover Survey
(JOLTS) data for average turnover rates by
month, including breakdowns by firm size
and industry.
While we took a variety of steps in the analyses
described below to ensure that the comparisons
between the Slavic companies and the overall
U.S. population were as valid as possible, it
should still be noted that it is possible that Slavic
clients are not representative of PEO clients as a
whole. Most notably, it may be that clients that
offer 401(k) retirement plans to their employees
vary in other respects as well when compared to
clients that do not offer such retirement plans.
However, because nearly all PEOs (98 percent)
offer some type of retirement plan to their
clients,17
we are comfortable that the Slavic401k
data are indeed reasonably representative of the
clients of the PEO industry overall.
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We chose to conduct a quarterly analysis based on the expectation (from guidance
provided by Slavic401k) that companies would report at least one payroll record per
quarter for each individual employee.
Any quarter in which an employee had a payroll record in the Slavic database was
interpreted as a quarter in which that employee was employed by a given company.
Any quarter in which an employee did not have a payroll record in the Slavic database
was interpreted as a quarter in which that employee was not employed. If an employee
went from employed status in one quarter to not employed status in the following
quarter, that was considered a “separation” (or turnover) for the first quarter. For example,
if an employee was employed by Company 1 in 2012 Q1 and 2012 Q2, but not employed
in 2012 Q3, that employee was classified as having separated (left the employment of)
Company 1 sometime in 2012 Q2.
Consistent with the BLS definition of separation rate, we then divided the total number
of separations in each quarter by the total level of employment (number of different
employees) for each company to calculate a quarterly turnover rate.
We then compared each company’s turnover rate to the overall national average broken
down by two variables. For turnover data, national data are available by industry and by
size (but not by state). There are a number of key differences in the BLS industry data and
the BLS size data. The industry data are official BLS data and are not seasonally adjusted
to account for regular seasonal fluctuations in employment levels. In this way, they are
a better match for the data derived from the Slavic file, which are also not seasonally
adjusted. However, some of the industry groups used for the BLS industry data do not
precisely match the standard industry categories available for the companies in the data
file.
The data by size are relatively new and are classified as “experimental” unpublished) data
by BLS and are seasonally adjusted.19
It should also be noted that these data are calculated
at the “establishment” (typically location) level, while the Slavic data are primarily at the
firm level (and could therefore include multiple establishments). This should not affect the
capacity to compare turnover rates overall, although there could be some effect on specific
size-based breakdowns.
The analysis by company size was conducted on the full 1,000-company sample. The
analysis by industry includes 742 companies, excluding those firms for which available
industry information from the Dun & Bradstreet corporate database was either not
available or did not align with the BLS industry groups used for reporting turnover.
Keeping Turnover Low and Survival High
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Business Survival and Failure Rates
We analyzed annual year-over-year business survival and failure from 2010 to 2013 for all
“company-years” (e.g., Company 1 in 2012, Company 1 in 2013, Company 2 in 2013) in the
Slavic database that had the following characteristics:
• Starting in 2008 Q1 (the beginning of the available data from Slavic), at least four
consecutive quarters of using PEO services at any point prior to the year being
analyzed;20
• Located in one of the 24 states with the largest number of company records in the
Slavic database and company status data available through state databases;21
and
• Incorporated in 1994 or later (1994 is the earliest year for which BLS has survival rates
available for later years).
For each company-year that met the criteria above, we then determined the firm’s survival
status and assigned a “survival status value.” Companies that were still active in the Slavic
file at the end of 2013 or those classified as “active” (or similar, such as “good standing”) in
the state corporate database through the first quarter of a given year were considered to
have “survived” and were assigned a survival status value of 100 (percent).
Companies that were classified as “inactive” (or “not in good standing”) were assigned
a survival status value of 0 for the first calendar Q1 in which they were no longer active
(this date was determined based on state-provided information on last date of corporate
activity). A survival status value of 0 is assigned for a single year to each inactive company
for the year in which the business was determined to have failed and the company is then
excluded from analysis in all subsequent years.
Because the characteristics of the companies available for analysis from the Slavic database
do not match national averages (for factors such as year of inception, state, industry,
and size), we compared each company’s survival status value with BLS’s reported average
national “survival rate of previous year’s survivors” for the appropriate analysis year
and inception year cohort, broken down by either industry or state. This allowed us to
calculate, for each company-year, the difference between its actual survival status and
its expected survival status. Calculating the rates in this way ensures that differences in
industry or state distribution across companies in the analysis database do not affect
aggregate results. Finally, when we aggregated the company data to overall averages, we
weighted the sample by size group to be consistent with the size distribution of companies
in the United States.
Keeping Turnover Low and Survival High
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Keeping Turnover Low and Survival High
So, for example, if Company 1 survived into 2012, its survival status value would be 100 for
2012. If the average survival rate of previous year’s survivors was 95.5 percent in Company
1’s industry, the difference between actual and expected survival status, based on industry,
for Company 1 would be 4.5 for 2012. If Company 1 did not survive into 2013 and the
average industry survival rate of previous year’s survivors was 97.1, the difference between
actual and expected survival status would be -97.1 for 2013. We then convert these survival
numbers into their corresponding business failure rates for purposes of discussion.
Data Issues
We calculated survival rates using multiple specifications that were
designed to account for the effects of various imperfections in the
available data.There were two major categories of imperfections:
• Some inactive firms had apparent mismatches between date
of incorporation and date of corporate failure (e.g., the listed
failure date was earlier than the listed date of incorporation);
and
• The status of some companies was not available or could not
be found in the state corporate databases; these companies
were classified as “unknown” in the original analysis file
while additional adjustments were made subsequently,
based on further company-by-company research.
Multiple analysis specifications
The alternative specifications we used were designed specifically
to adjust for factors that could be overstating advantages for PEO
clients.
In particular, because the first category of mismatches cited above
only affected inactive firms (it affected approximately one-third of
all inactive firms in the analysis file), it would have the effect of
overestimating survival rates and underestimating failure rates for
PEO clients when those invalid records were (of necessity)
excluded from the original analysis file. So, for one (more
conservative) alternative specification, we calculated a “worst
case scenario” in which all of the affected firms were classified
as “business failures” that had failed in one of the four analysis
years (randomly assigned to occur equally across the four years,
with no corresponding survival in any previous years added to the
database).
The underlying effect of the second data issue above (companies
with an operational status of “unknown”) was less clear, as it was
not known whether these “unknown” companies were
primarily active or inactive. Nevertheless, it seemed likely that
some significant percentage of this set of companies would be
inactive. For companies affected by this issue, we therefore
conducted additional research in an attempt to ascertain the
status of those companies not available through the state
databases.This research included web searches as well as
telephone calls to business phone numbers in an attempt to
ascertain current status.A second (“most conservative”)
alternative specification included as many as possible of these
“unknown” companies, classified as either active or inactive. For
inactive companies, we followed the same conservative technique
as we did for the mismatched invalid companies—we assigned
business failure to each firm in one of the four analysis years (and
did not consider the firms to have survived in any other years).
In addition, apart from the issues above, the BLS data on survival
rates also had quality issues that primarily affected certain
industries and certain data for the year 2013.22
We
communicated directly with BLS to understand the source of the
issues, with a particular focus on some reported BLS data that
were clearly erroneous. Based on their explanation and
guidance, we chose to exclude certain data points from the
analysis, although it was not possible to entirely remove the
effects of the problem from the BLS data in this area.23
It should
be noted that all of these errors tended to overestimate national
survival rates as reported by BLS (and thus reduce the estimation
of any advantage PEOs might provide to their clients).
Overall impact of data issues and multiple analysis
specifications
The data uncertainties described above make it unclear which
analysis specification is most accurate.Taken together, however,
the three specifications (as well as separate calculations using
state and industry comparisons) provide a range of estimates
of survival rates among PEO clients that can be viewed as
providing a floor and ceiling on the actual number.The first
specification in Table 5 overstates survival (because we know it
excludes some inactive companies due to inconsistencies in their
data).The second and third specifications, however, likely
understate actual survival, because they assign corporate failure
dates to inactive companies without allowing for the possibility
that they had first survived for any years prior to their failure.As
noted, the unquantifiable errors in the BLS data also have the ef-
fect of understating any advantage that PEO clients might have in
terms of reducing business failure.
We rely on the most conservative specification (listed in the right
column of Table 3 as the most analytically responsible for
summarizing the analysis results) because it yields the lowest
estimates of the advantage generated by PEOs.We use this
specification as the basis for all of Tables 2 and 6.This file is also
the largest sample, including 4,508 company-years when
compared with industry survival rates and 4,798 company-years
when compared with state survival rates.
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When differences between actual and expected survival rates are averaged across all firms
in the analysis database, a positive average survival number indicates that PEO clients have
a higher-than-expected rate of survival and a lower-than-expected rate of business failure.
A negative average survival number would indicate that PEO clients have a lower-than-
expected rate of survival and a higher-than-expected rate of business failure.
Endnotes
1 Sum of monthly turnover rate average for all private employers, as reported by BLS.
2 U.S. overall number controls for year of inception, year of analysis, and industry, and is weighted identically to the sample
weighting described in this report.
3 For purposes of this paper, we define “business failure rate” as the percentage of businesses that do not survive in a given
year. On average, 92 percent of all businesses from one year survive into the following year, so the business failure rate is,
correspondingly, 8 percent annually.
4 The SHRM worksheet is available at www.shrm.org/templatestools/samples/hrforms/articles/pages/1cms_011163.aspx.
5 William G. Bliss, “Cost of employee turnover,” The Advisor (2004). http://hrtogo.com/pdf/turnover-cost.pdf.
6 Matthew O’Connell and Mei-Chuan Kung, “The Cost of Employee Turnover,” Industrial Management 49:1 (January/February
2007).
7 Sum of monthly turnover rate average for all private employers, as reported by BLS.
8 Sum of monthly turnover rate average for all private employers, as reported by BLS.
9 Reported differences are the averages of company differences from expected turnover compared to industry averages
and size group averages. They are calculated only for companies with expected values based on both their industry and size
group (this excludes some industries for which comparable data are not available in the BLS-reported industry turnover data;
“Administration and Waste Services” is the largest such industry in the data file).
10 Sample sizes for these industries (based on the size group analysis) were: “Professional, Scientific, and Technical Services”
(172); “Health Care and Social Assistance” (112); “Finance and Insurance” (86); “Manufacturing” (81); “Wholesale Trade” (61);
and “Construction” (60).
11 U.S. overall number controls for year of inception, year, and industry, and is weighted identically to the sample weighting
described above.
12 U.S. overall number controls for year of inception, year, and industry, and is weighted identically to the sample weighting
described above.
13 Reported differences are the averages of company differences from expected failure rates compared to industry averages and
size group averages. They are calculated only for companies with expected values based on both their industry and size group
(this excludes some industries for which comparable data are not available in the BLS-reported industry data; “Administration
and Waste Services” is the largest such industry in the data file).
14 Unweighted sample sizes for these industries were: “Professional, Scientific, and Technical Services” (1,105); “Health Care
and Social Assistance” (461); “Administrative and Waste Services” (458); “Manufacturing” (400); “Finance and Insurance”
(354); “Construction” (335).
Keeping Turnover Low and Survival High
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Endnotes Cont.
15 This process involved searching state records by company name and location. In those cases in which exact matches were
not found, we examined a variety of other measures, including date of incorporation, similarity of name, and geographic
proximity of reported location. We used a conservative methodology in which we did not classify a company as a match unless
we had significant certainty that we had located the same entity, even if some specifics were not exact matches.
16 All companies still active in the Slavic database at the end of 2013 were, by definition, classified as active for purposes of the
analysis in this paper, which ends in 2013.
17 NAPEO, 2013 Financial Ratio & Operating Statistics Survey.
18 As discussed below, to determine employee separations, turnover analysis requires employee data from at least one quarter
after the analysis period, so 2013 analysis was not possible based on the available data.
19 The firm size data break companies into six categories: 1 to 9 employees; 10 to 49; 50 to 249; 250 to 999; 1,000 to 4,999;
and 5,000 or more employees.
20 Use of PEO services for a given quarter was determined by the presence of at least one payroll record in the Slavic database.
21 Because company status needed to be determined through manual research in each state’s unique online corporate
database, we selected the 25 states with the largest numbers of companies to maximize the number of companies included
while reducing the number of states where it would be necessary to learn database details. Massachusetts was included in
the original 25 states, but companies in that state were ultimately excluded from the analysis because corporate information
provided by Massachusetts is insufficient to determine a company’s current status.
22 BLS indicated that the data problems stemmed primarily from two issues: year-to-year counts for companies with multiple
establishments in a given state; and reclassification of some establishments from one industry category to another that had not
been treated consistently across states.
23 We removed all BLS data reporting a survival rate of over 100 percent (a mathematical impossibility) as well as all data from
a small number of industries classified by BLS as most affected by the error. Other data also overstated survival rates, but it was
not possible to quantify the extent of the error, so we used all remaining data.
About McBassi & Company
McBassi is an independent analytics and research firm that helps clients create consistently profitable and enlightened
workplaces. McBassi uses the language and tools of business—metrics and analysis—to build successful organizations by
optimizing the power of their people. McBassi’s principals (Dr. Laurie Bassi and Dan McMurrer) are co-authors of “Good
Company: Business Success in the Worthiness Era” (winner of the 2012 Nautilus Gold Award for Business/Leadership) and the
“HR Analytics Handbook.”
About the Authors
Dr. Laurie Bassi is CEO of McBassi and a global leader in the field of applying analytics in the world of HR. Laurie is the author
of more than 90 published papers and books and was previously a tenured professor of economics and public policy at
Georgetown University. She holds a Ph.D. in economics from Princeton University.
Dan McMurrer is the chief analyst at McBassi. An analytics expert, Dan focuses on researching the relationship between
organizations’ work and learning environments and their business results. He holds an M.P.P. in public policy from Georgetown
University.
Keeping Turnover Low and Survival High