A Fitness Test for Businesses; In Survival of Fittest Struggle, HRLogic Finds PEOs Are Competitive Edge for Companies.

Business/Human Resources Editors

BOSTON--(BUSINESS WIRE)--Nov. 30, 2000

It's not pumping iron but productivity that indicates a company's "fitness" level. Businesses get flabby when they spend too much time on non-revenue generating activities. But Craig Coy, CEO of HRLogic (www.hrlogic.com), says partnering with a professional employer organization (PEO) to handle non-core essentials like human resources, can help them stay fit, and make the difference between success and failure.

This test can help determine whether a business is the fittest it can be, or whether some toning up is in order.

    1. I'm proud that the benefits we offer our employees include

    A.  A bowl of M&Ms at the reception desk.
    B.  Funny nicknames given by the CEO.
    C.  A Fidelity Investment 401K plan and concierge services.

    2. When it comes to payroll

    A.  I've been late a few times!
    B.  Some employees have complained that they don't have direct
        deposit.
    C.  My accounting department handles it.

    3. The last time an employee quit was

    A.  A few minutes ago.
    B.  It's like a revolving door. Who can keep track?
    C.  I'm not sure; it wasn't in my department.

    4. In the exit interview, the departing employee explained that

    A.  Another job offered better benefits.
    B.  What exit interview?
    C.  He/she was moving out of state.

    5. I know that federal and state employment laws are complex, so

    A.  I call my lawyer several times a day.
    B.  I've been in my office until midnight all week poring over an
        employment law textbook.
    C.  I let my legal department handle them.

    6.  On every employee's first day I

    A.  Clear out the cubicle where the guy who quit last sat.
    B.  Rarely notice--we're all a little bleary eyed around here
        lately.
    C.  Provide an employee handbook, make sure all legally required
        forms are filled out, and begin a personnel file.

Scoring:

Give yourself one point for each A or B answer, and 0 points for each C answer.

0-1: Mr./Ms. Universe: Take pride in your fit business! You know you can't waste your precious resources on non-revenue related functions and understand that competitive benefits are critical in attracting and retaining employees. Maybe you've already partnered with a PEO, or you're a large company with HR, accounting, and legal departments. To maintain fitness, do a periodic evaluation as your size and needs change to make sure that you're handling your HR functions as effectively and efficiently as possible.

1-3: Pot Belly: You're doing some things right, but a little toning is in order. You understand the importance of HR issues, but you can't afford to spend time and money on it right now. Just realizing that something needs to be done about these issues is a start. Partnering with a PEO is a good next step for small- and medium-sized businesses whose resources are precious. For a very low cost (most often offset by the savings it achieves), a PEO partner can handle all of your HR needs, including

- processing employee paychecks and dealing with insurance companies and other
benefits

- providing the group buying power that eludes smaller sized companies,
allowing you to provide sophisticated, Fortune 100 type benefits packages
typically seen only in large corporations

- offering expert advice on a wide range of compliance matters, from employee
manuals (some PEOs will even draft employee manuals) to proper hiring and
terminations

- sharing responsibility for liability issues involving co-employees

- creating and holding employee and/or manager training sessions

3-6: Couch Potato. HR is not your forte, but it's not supposed to be. As a business owner, you need to focus on your core competencies. Partnering with an HR expert, like a PEO, lets you can clear HR issues of your plate and breathe easier. But don't wait. Without competitive benefits--which today can include a Fidelity Investment 401K plan, AFLAC Inc.'s supplemental insurance products, and even concierge services--and streamlined operations, you risk losing valued employees and may be unable to attract the new employees you need to grow. Moreover, navigating applicable laws is difficult; a wrong move can expose you to liability. A good PEO can, at minimal cost to you, provide the group buying power you need to put together an exciting benefits package and offer advice on a wide range of compliance matters.