Your Employees: Leasing Smart

Three months after Colleen Johnson opened Print Plus in Kennewick, WA, she three up her hands in despair. "I was absolutely overwhelmed by the employment-related paperwork," she says. "It was all more than I had bargained for." Her solution? 'I fired everybody!" she says. Smart move. Because her next step was to lease back her employees from a professional employer organization (PEO) that took all those time-consuming personnel details off her back.

You're Still The Boss

"Technically, a company that leases its staff from a PEO has no employees of its own," says David Nye, an associate professor at Alabama's Athens State College and author of Alternate Staffing Strategies. But "managerially, nothing changes. The business owner is still the boss.

"The PEO, as the employer of record takes care of report processing, tax deposits and a lot of the administrative duties that most business people hate," says Nye. However, workplace safety and equal opportunity requirements are still the responsibility of the owner.

More Benefits, Fewer Headaches

"Once business owners realize they can get big-business benefits without busting their bank account, they jump at employee leasing," says Edward Loke, who leases 11 employees for Texcel, his Houston-based wholesale rubber company.

Big Business Style Benefits

By employing hundreds, even thousands, of workers, PEO's can get benefit packages at rock-bottom prices. They can also afford personnel experts who stay on top of employment law and taxation requirements. When small business contract with PEO's they tap into these resources.

"Suddenly a whole world of affordable insurance and handy services opens up to you," says Brandenton, FL, attorney Richard Lee Buckle, who leases his four-person staff. "And the PEO's employment expertise is like having your own personnel department."

When Ken Seeger left his position as a vice president for a large corporation to buy Infinity Products, a small shutter manufacturer in Englewood, CO, he quickly realized what he gave up. "Benefits," he says. "The company didn't have the money or the clout to get things like major medical or a retirement plan. I missed them and wished I could offer them to my employees."

Since linking up with a local PEO, Seeger says, "we have all the goodies"- health, dental and vision care; a credit union; a 401K retirement plan; even discounts to health clubs and merchants. "It's done wonders for morale," he says.

Reduced Worker's Comp Rates

Besides making health care benefits accessible, many PEOs can reduce workers' compensation rates. They work their magic by scouring a company's accident and claim history for mistakes in classifying type and severity of accidents. Setting the record straight can drop rates. So can improving workplace safety.

Often, PEOs will bring the rates war right into your workplace. Seeger's PEO conducted a safety audit of his facilities. The resulting recommendations and safety program shaved a few points off the workers' comp accident history rating. He expects premiums to drop more as claims decline.

Help with Regulatory Compliance

"What I know best is running a hair salon," says Louis Martinez, owner of Envision Hair Salon in Worchester, MA." I don't have time to calculate payroll, write checks, file reports and stay on top of all the new regulations and legislation."

But not staying abreast of new regulations can cost you plenty in today's fine-happy world. When Martinez's PEO first reviewed his company's records, it found a slew of reporting requirement violations, which it quickly remedied. "Now I know my records are in line," says Martinez, "because I have experts doing it for me."

Built-in Consulting Services

Before firing an employee, Alex Degutis, owner of Theresa's Family Restaurant, in Bradenton, FL, touches base with his PEO. "They make sure the termination is justified and that I have all the evidence I need to prove it," says Degutis.

PEOs can also screen job candidates, process the paperwork for new hires, deal with problem employees, and help you avoid behavior that could be construed as discriminatory.

Improved Communication

"In small businesses," says Jerald Broussard, vice president of marketing for Kingwood, TX-based PEO Administaff, "camaraderie sometimes makes discipline difficult." He tells of a client who got a sexual harassment complaint about a long-term employee. "They didn't know how to confront the employee," says Broussard, "so we went in and did it for them. Everything worked out fine."

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American Driver Leasing, Inc. is a driver staffing specialist providing DOT qualified professional drivers and transportation personnel to the private truck fleet community nationwide. ADL specializes in all driver management, driver recruitment, driver screening, driver training, and driver testing for all classifications of truck drivers. ADL conducts driver evaluations, driver safety programs and our drivers are bonded; handles driver labor contract negotiations, and provides driver payroll and benefit plan processing, including workers compensation nationwide. American Driver Leasing achieves full Department of Transportation (DOT) compliance and provides driver auditing, and 24 hour service. ADL is your nationwide solution to driver management for 1 truck or 100 trucks. American Driver Leasing, Inc. is a driver staffing specialist providing DOT qualified professional drivers and transportation personnel to the private truck fleet community nationwide. ADL specializes in all driver management, driver recruitment, driver screening, driver training, and driver testing for all classifications of truck drivers. ADL conducts driver evaluations, driver safety programs and our drivers are bonded; handles driver labor contract negotiations, and provides driver payroll and benefit plan processing, including workers compensation nationwide. American Driver Leasing achieves full Department of Transportation (DOT) compliance and provides driver auditing, and 24 hour service. ADL is your nationwide solution to driver management for 1 truck or 100 trucks.