Texas Banking - June 1998

What’s Hot With TBASCO?
Administaff, Inc.: A PEO That Can Help Your Bank Grow

By Rick Wilson, Administaff District Manager

Several factors may have inspired you to choose banking as a profession. At the same time, it’s probably safe to say that processing personnel paperwork, keeping up with ever-changing employment regulations, dealing with workplace liability issues, selecting proper insurance coverage and properly hiring and firing employees were not among your selection criteria.
In banking, there are a multitude of activities and issues that can divert your attention from more pressing priorities. However, these time-consuming tasks no longer need to clog your productivity and profitability.

An increasing number of banks have retained a Professional Employer Organization (PEO) to handle the administrative and human resources functions that previously kept managers from building their banking business. In fact, the Texas Bankers’ Association has retained and now endorses Houston-based Administaff, Inc. -- one of the nation’s leading PEOs.

While PEOs are rapidly gaining acceptance among astute business owners throughout the nation, the concept itself is relatively young. Following are some frequently asked questions regarding PEOs and how companies such as Administaff can help boost your bank’s bottom line:

What is a PEO?
A PEO manages a client’s entire human resources function, including payroll and tax filings, unemployment and workers’ compensation insurance programs, 401(k) plan and health insurance administration, and regulations compliance. A key benefit to working with PEOs is their ability to use economies of scale to bring retirement programs, health insurance plans and other employee benefits programs to affordable levels, thus enabling smaller banks and other clients to present attractive employment compensation packages to sought-after employees.

In addition to these activities, Administaff provides other valuable services including recruiting, employee handbook and policy development, employee counseling, training, screening and performance appraisal assistance.

How is Administaff Different From A Temporary Employment Agency?
Temporary employment agencies help businesses primarily by identifying, recruiting and selecting personnel that work for a short duration. However, employment assistance represents only one component of Administaff’s well-equipped tool kit. In fact, Administaff becomes a bank’s "co-employer" by establishing a long-term relationship with the bank’s owners and their existing employees. Administaff then essentially serves as a bank’s virtual human resources department. The company develops an array of programs and manages simple administrative activities that allow the bank’s officers and employees to concentrate on core activities such as customer service and marketing to enhance business expansion and growth.

How Does "Co-Employment" Work?
PEOs were born of the frustration many small-business owners experience when administrative work inhibits their ability to grow their organization. To overcome that challenge, a business and PEO enter into what is called a "co-employer" relationship. For example, under the co-employer arrangement, a bank and its employees receive Administaff’s value-added human resources services, and the employer-related responsibilities are allocated between the bank and Administaff. Of course, the bank owner still makes all the strategic business decisions and can delegate various human resources projects and responsibilities to his PEO on an "as-needed" basis.

Who is Administaff?
Founded in 1986, Administaff is one of the nation’s leading providers of professional employment services and the only PEO listed on the New York Stock Exchange (under the trading symbol ASF). Administaff, which has eight offices in Texas, serves more than 1,900 client companies that collectively employ more than 31,000 people nationwide.

In addition, Administaff is one of only 17 PEOs (among an estimated nationwide total of 2,500) to be accredited by the Institute for the Accreditation of Professional Employer Organizations (IAPEO).

How Can Administaff Help My Bank?
Administaff can help your bank grow by:

• Reducing its employment administration burden;
• Enhancing employee benefits;
• Finding and retaining good employees;
• Training and developing employees;
• Relieving workers’ compensation headaches;
• Boosting employee productivity;
• Reducing its employer liability; and
• Ensuring government compliance.
• By delegating human resources responsibilities to Administaff, you can spend more time focusing on satisfying existing customers and attracting new ones.

What Makes Administaff Unique?
Administaff’s success is built on 12 years of carefully laying foundations for both the company and our industry, and has been rewarded by earning a reputation as one of the PEO industry’s most trusted, recognizable brand names. Our comprehensive Personnel Management System further distinguishes us from competitors. The Personnel Management System is comprised of a unique and exhaustive array of human resources services, including benefits and payroll administration, medical and workers’ compensation insurance programs, personnel records management, employee recruiting and selection, performance management, and training and development. The Personnel Management System allows Administaff to offer bank owners a win-win opportunity: enhance productivity and efficiency while reducing stress.

For more information, call Administaff at 800-465-3800.

Reprinted with permission of Texas Banking.