Recently Shapiro FPG Founder & President, Stuart Shapiro, sat down with A&C Management Founder and President Danny Nessim to discuss the benefits of PEOs and working with A&C.
Stuart – “Danny, let’s start off with the most basic question for business owners who are not aware but what is a PEO?”
Danny – “Professional Employer Organizations pools small and medium size companies to offer fortune 500 benefits and rates. PEOs handles the human resource function for small and medium size companies, offering expertise and oversight that a company requires while offering an expanded in-house HR team. The areas of expertise offered by PEOs include payroll, compliance, group health insurance and a menu of voluntary benefits that can be purchased by the individual employees or the employer
Stuart – “How does the PEO model benefit companies in the broadest of terms?”
Danny – “PEOs allow companies to free up resources, both financial and in terms of personnel, by outsourcing the more specialized areas for HR. This allows in-house HR to focus on the more basic, day-to-day HR functions. The overall affect is that a company can provide professional HR services at a cost savings by reducing the need for additional inhouse staff while maintaining the highest level of expertise and professionalism. Additionally, industry statistics have shown that small businesses that work with PEOs grow 7-9% faster, have 10-14% lower employee turnover and are 50% less likely to go out of business.”
Stuart – “How does your company add value to the PEO offerings you provide?”
Danny – “A&C takes a holistic view of the market, choosing the best solution for our clients. We work with the top management of the PEOs, not the sales people, allowing us to negotiate rates based on our relationship with the PEOs and not based on pre-arranged rates that are geared toward more generic company profiles. It is very common that companies that use the benefits of a PEO, often realize cost savings of 20-30%, and in turn understand the value of working with a company like A&C management. This also results in our clients referring us to other companies that they work with and from that aspect our growth has been dynamic.”
Stuart – “How do you see the growth of PEO importance in the future?”
Danny – “PEOs are the wave of the future because the model allows small and medium sized companies to have access to large group benefits at costs far below the current rates that are being charged in the small group markets. This makes them more competitive in their respective markets and creates a more agile company in terms of financial resources, resources that can be dedicated to improving employee training, greater R&D or any other initiative that puts them in a greater position for success in the future.”
To learn more about PEOs and the work that benefits of working with Shapiro Financial Planning Group and A&C, simply call or submit the contact form to start the conversation.
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