MidwestHR a Professional Employer Organization
The Guys with Jeff Bartelt – President, MidwestHR
The Guys dive into the depths of what Professional Employer Organizations do for the small business owner, with Jeff Bartelt – president of Midwest HR. Jeff spent a number of years with ADP before launching a PEO that he felt would serve clients more completely. Small business owners often find the ‘job’ of running a company is complex and daunting with responsibilities that weren’t considered before the launch. As companies grow, the tasks of administration can be assisted greatly with PEO services.
MidwestHR and affiliated companies provide business owners and CFOs with relief from dozens of time-consuming HR & employment related functions, while helping protect the business from ever-increasing HR demands and liabilities. In addition, we help our clients to offer employees a more robust benefit package. At the same time we help companies remain in control of their premium costs.
Our conversation covers the span of PEO services, what suits business owners best and how Midwest HR has been able to assisted their clients with services that help the business grow and make sure that all legal responsibilities are covered in the development and maintenance of talent (employees) so the business at hand can be the primary focus. You’ll find our conversation enlightening and informational… not to mention the punny remarks liven things up.
A Professional Employer Organization (PEO) provides an integrated and cost effective approach to the administration of human resources and other employee-related duties. The PEO and the client partner in a co-employment agreement where they share the duties and liabilities of the human resource and administrative tasks. The PEO assumes responsibility for payroll, tax administration, risk management, legal compliance, and in most situations worker’s compensation. The business maintains control of its day-to-day operations, establishing pay rates, determining policies, the hiring and terminating of employees, and just about everything else related to running the business.
Statistics about the PEO industry, according to studies by NAPEO (National Association of Professional Employer Organizations):
• 14-16% of small businesses (with 10-99 employees) use a PEO.
• There are an estimated 3 million American workers currently employed in a PEO arrangement.
• Compared to other businesses, PEO clients grow 7-9% faster
• Companies that use a PEO are 50% less likely to go out of business
• Companies that use a PEO have 23-32% lower turnover
Most common reasons why businesses use a PEO:
• Necessity: for businesses who seek relief from time consuming, back office tasks
• Security: for compliance with the ever-changing ACA (Affordable Care Act) Laws regarding employment
• Ability: to offer a full array of “Fortune 500 type” benefits to their employees
• Proficiency: in all HR, Benefit, and Payroll tasks and regulations
Tune in to the Guys and Jeff for the usual bantering about business and make sure to look into the other shows we’ve produced, white papers we offer and Ray’s great crib notes on popular business books. Thanks for listening and… Enjoy the show!