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 STERLING HEIGHTS, Mich., Oct. 11 /PRNewswire/ -- Simplified Employment Services (SES), Michigan's largest and fastest-growing employee leasing firm, today announced an opportunity designed to stimulate and help rebuild the Detroit small business community. The opportunity provides substantial savings and other benefits to start-up companies in the city of Detroit, and to existing businesses that relocate to the city. The announcement was made by Dennis E. Lambka, chairman and CEO of SES.
 SES will provide human resource administration services including payroll administration, at no cost for six months to any company that either starts up in Detroit or relocates to the city, and contracts with SES for employee leasing. The offer will begin Wednesday, Nov. 3, the day after Detroit's mayoral election, and will be in effect for six months, ending Friday, May 6, 1994. The no-cost service will run for six months from the time a participating company begins doing business in the city.
 A "Detroit Challenge" for Detroit Business
 In making the announcement, Lambka said the coming change in city administration focused new interest in finding solutions to the city's problems and that attracting business had to be part of any solution. He set a goal of 100 new businesses in six months within the city's borders and called on other companies to get involved in what he dubbed "The Detroit Challenge."
 "One hundred new businesses in the city would be a good start toward building a more robust business community within Detroit's borders and we invite other companies, service firms, various organizations, and the new mayor to get involved," he said.
 Lambka estimates that 100 companies can generate $1.5 million in savings on benefits and fees, which in turn could be pumped back into the Detroit business community as capital available for use on other things. He added that the possibilities for existing businesses to get involved are endless because new companies need banking, legal and accounting services, real estate, office supplies and a host of other things.
 "Things such as favorable lease rates and financing, or extended payment plans can be especially helpful to a small business person during his or her first year of business," Lambka said.
 SES Offers Savings Through Staff Leasing
 In staff leasing arrangements, a staff leasing company hires the employees of client companies, then leases them back to their original companies. The original companies maintain all management control, job assignment and decision-making responsibilities for their businesses. The staff leasing company handles payroll, human resource administration and related legal matters, and ensures compliance with various regulatory agencies such as OSHA and EEOC.
 By pooling employees under lease, staff companies volume-purchase health insurance, employee benefits and workers' compensation insurance at lower rates than many companies can qualify for. Savings are passed on to client companies. In addition to lowering costs, staff leasing arrangements often provide increased benefits coverage and access to retirement plans beyond the reach of many small to medium-size businesses.
 Lambka said that under the SES offer announced today, a typical 20-person business will save approximately $5,700 the first six months in human resource administration costs alone. This savings is on top of the savings in insurance and other employee benefits. Also, with staff leasing, a new business will not have to pay any advance for workers' compensation insurance, eliminating another needless expense for a new business. SES estimates show that an average company with 20 employees can save as much as $15,000 in combined savings its first year in business, which is generally the most critical time for start-ups.
 "This adds up to a tremendous opportunity for a new business operator because it frees up additional capital during the crucial start-up phase," Lambka said.
 Having successfully grown his own business, Lambka said he can relate to many of the problems small business owners face and that professional human resource administration and more cost-effective benefits packages are a way his company can help others become successful. He added that a larger network of businesses helping business could be a very effective way to help start-up companies in Detroit become successful.
 "It is our hope at SES that many others in the metropolitan area will take up this Detroit Challenge to provide opportunity and a greater chance of success to businesses willing to move into the city," he said.
 Simplified Employment Services is headquartered in the Detroit area and is a leader in the staff leasing industry. SES provides reduced costs for health care, workers' compensation and human resource administration through comprehensive staff leasing services and professional human resource management. SES currently serves more than 260 client companies with approximately 7,000 employees in 19 states across the country, and is the largest, fastest-growing staff leasing firm in Michigan. SES is a Pegasus Group Company.
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 /CONTACT: Gordon Cole of CPG Communications, Inc., 313-581-2047, for Simplified Employment Services/

CO: Simplified Employment Services ST: Michigan IN: SU:

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Publication:PR Newswire
Date:Oct 11, 1993

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