The Marketeer 2002

The Business of Employment

By Jane Schreier Jones

Increasing government regulations and paperwork details have caused many companies nationwide to turn to a Professional Employer Organization (PEO). Typically, PEOs take care of the "business of employment" so success-minded entrepreneurs can focus on the business itself.

The nation's leading PEO - Administaff - has arrived in the Twin Cities. Since the company's arrival in February, the reception has been "very positive," according to Administaff District Manager Chris Rosenlund.

"The business climate in this area is vibrant, with companies talking about expansion and bringing on new employees," Rosenlund says. "Research shows that growth in this area will come from the small- to mid-size business sector, and that's exactly our target market."

"Especially when a company wants to grow, it makes sense to talk to Administaff. We take away so many of the administrative burdens of running a company and free up the owner's time for more important priorities."

Based in Houston, for more than 15 years, Administaff specializes in small- to medium-size companies, usually with five to 100 employees. Currently, the company has more than 4,500 client companies, most in white-collar or skilled blue-collar industries, such as technology, engineering, accounting, medical services, banking, legal, insurance and light manufacturing.

Laundry List
Employment administration is one of Administaff's main responsibilities, including processing payroll, tax filing, W-2s and W-4s, among other services.

"Government compliance tasks include reporting and agency interface, unemployment claims management, wage claims and audits, OSHA, EEOC, DOL, ADA, FMLA and the entire alphabet of government regulation and compliance issues," Rosenlund reports. "We have the time and expertise to stay on top of these issues, so the client company doesn't have to. Those regularly scheduled interruptions no longer have to be a part of a business owner's life."

Other Administaff core PEO services include recruiting and selection, performance management, benefits management, employer liability management, training and development and owner support.

Core services are complemented by an e-business strategy that includes an interactive e-service platform. This platform provides clients and employees with information and resources to help maximize the benefits of their Administaff services.

The Better Solution
"No one goes into business to be good at performance reviews," says Rosenlund. "Personnel matters and paperwork never grow your business."

Administaff delivers personnel management services by entering into a co-employment relationship with a client company and that client's existing employees, including the business owner. Under this arrangement, Administaff assumes or shares most of the responsibilities of being an employer and serves as an off-site, full-service human resources department.

"The business owner can concentrate on products and services and engaging his or her growth plan," Rosenlund says. "We are not interested in running people's businesses. We let company management do that, while we take care of human resources management, payroll and payroll taxes, workers' compensation, employee benefits, employer-related liability management and more. Administaff customers do not have to worry about keeping up with the ever-changing array of workplace regulations."

A New Choice For Twin Cities Businesses
While businesses have other choices for PEOs in the Twin Cities, Rosenlund says Administaff is a strong option for companies wanting to expand. "We help companies manage employer-related expenses and fuel a company's revenue generation through recruitment and training," he says. "We also protect net profit by being focused on liability and compliance issues.

"Our staff is very busy talking to Twin Cities companies about what Administaff can do for them, and the reception has been positive," Rosenlund says. "We talk about the owner's needs and what his or her plans are for the future, and together we see if the Administaff solution is right for them."

For the last four consecutive years, Fortune magazine has named Administaff one of America's most
admired companies, and Administaff President and Chief Executive Officer Paul J. Sarvadi was
named a 2001 National Ernst & Young Entrepreneur of the Year in the services category.

Out of a nationwide total of approximately 2,000 PEOs, Administaff is one of fewer than 20 PEOs currently accredited by the Employer Services Assurance Corp. (ESAC). Through its independent application and monitoring process, ESAC evaluates PEOs' compliance with important ethical, financial and operational requirements.

"We're very pleased to be bringing the sound reputation of Administaff to the Twin Cities," Rosenlund says. "Our philosophy is, 'We help manage your top line, and we help protect your bottom line.' It's gratifying to find that the business owners of the Twin Cities are responding to that philosophy."

What Will Your Employees Say?
Many employers are concerned with how their employees will react to having a PEO on board. According to the National Association for Professional Employer Organizations, the benefits to employees are considerable and usually include:

• Benefits previously unavailable
• Better employer/employee communications
• On-time and accurate payroll
• Professional assistance with employment-related problems
• Up-to-date information on labor regulations
• Efficient and responsive claims processing

"We make sure employees understand that their employer has made this move to not only grow the company but to offer advantages to employees," Administaff District Manager Chris Rosenlund says. "Because of our history in this business and because of what we offer, employee reaction is positive."

Reprinted with permission from The Marketeer, 2002.