The National Association of Professional Employers Organizations describes a co-employment relationship as:
"When evaluating the employer role of either the PEO or the client, the facts and circumstances of each employer obligation should be examined separately, because neither party alone is responsible for performing all of the obligations of employment.
Each party will be solely responsible for certain obligations of employment, while both parties will share responsibility for other obligations. When the facts and circumstances of a PEO arrangement are examined appropriately, both the PEO and the client will be found to be an employer for some purposes, but neither party will be found to be "the" employer for all purposes.
Both the PEO and the client company establish employment relationships with worksite employees. Each entity has a right to independently decide whether to hire or discharge an employee.
Each entity has a right to direct and control worksite employees."
WHAT???!!!
So, let me get this straight, each party is responsible for some, both parties share responsibility for some but neither party is responsible for all, but then again each party can hire and fire employees independently of the other pary and each party can control worksite employees.
Does this sound a bit confusing? Isn't this the same as Abbott & Costello's Who's on First comedy routine?
How can a business owner manage their workforce when another party can come into the mix and independently fire one of the employees?
If I am in a PEO, what am I responsible for managing and what areas am I not able to manage?
How much am I being charged to not manage some things and manage others?
If you know someone in a PEO, have them take the time to look at what they are being charged versus what they can get on the open market.
Recently, we have found that some PEO's are charging more for group insurance than can be found on the open market. Others are totally and completgely ripping off their clients with exhorbitant workers comp rates. We found one that should be charging $0.39 per hundred dollars of payroll and they are charging $8.49. This amounts to a mod rate of 21.77 - there is no such thing as mod rates do not go that high. I wonder how it is possible for a PEO to charge this much for workers comp.
We have many more examples, so if you are in a PEO or know someone who is, please - for your own sake, take a look at the costs. The time to do this is now.
Thursday, May 28, 2009
Monday, May 25, 2009
Happy Memorial Day - Hire Former Military
Growing up in the Vietnam Protest Era, it took me a while to warm up the military. I was one of those who opposed the United States involvement in Vietnam and thought Country Joe and the Fish (whose only claim to fame was appearing at Woodstock in 1969) were heroes. Check out their website http://www.well.com/~cjfish/ as they make the claim that they single handedly ended the Vietnam War. Their website states, "Welcome to the official World Wide Web home to the 60's band that stopped the war in Vietnam." That message seems so bizarre to me today.
I never joined the armed forces as the draft was abolished the year before I turned 18. My father and my uncles fought in World War II and my father in law was a Korean War veteran. I have a lot of respect for these people. I am in awe of their willingness to serve and die for our country.
About 15 years ago, I took my wife and kids to visit Washington D.C. I walked the Wall. While looking at all of the names, I broke down and cried uncontrollably. My 9 year old son did not know how to take the sight of his father crying to the point of getting down on his hands and knees. The thought of the thousands of people who were in my same age bracket who lost their lives was just too overwhelming for me to bear. I remember my wife took the kids away from me as she knew I needed my space.
Then I felt a hand on my shoulder. The hand was that of a man who was about 6 feet, seven inches tall (I am 5'6"). He, too, was crying uncontrollably. I stood up and he put his arm around my shoulders. I put my hand on his back (I couldn't reach his shoulder). We did not say anything to each other. We just stood there for a few minutes. The mere act calmed both of us down. Once we were able to regain composure - we just gave each other a slight nod and went out separate ways. We did not say anything to each other. We did not have to. Oh, by the way, this man is black and I am white. I thought about the significance of black and white men standing arm-in arm crying. Then I also thought that our different races did not matter and it should not have even been thought of as significant. Afterward, my son asked who the man was. I told him, I did not know his name, but he is a friend. It was an important thing for my son to see - so that's all that matters.
From then on, I had a new appreciation for the lives that were lost to allow all of us to keep our freedoms intact.
My son is in the Navy now. He is an Intelligence Office stationed in Korea. He had his weekend filled with the excitement as North Korea tested a nuclear weapon. He called today. My wife and I love talking to him and are making plans to visit him in a few months. I could not be more proud of a human being than I am of my son - especially today.
I love the military and have the utmost respect and admiration for anyone who has served our country in the armed forces.
Being in the Jacksonville, FL area where there are two major Naval Bases, I meet many former militray people. These bases are excellent sources of excellent employees. I volunteer often with the Transition Assistance Programs and can tell you that all employers should do everything they can to team up with the military transition groups. Since there is not a lot of hiring going in, it is a perfect time to get to know the individuals who are responsible for helping former military obtain jobs in the civilian world.
They are not as busy now - so get to know them before you need employees. If you wait until you need people, it will be too late to develop that necessary relationship.
To all of the people who have served and currently serving in the military. THANK YOU - from the bottom of my heart.
I never joined the armed forces as the draft was abolished the year before I turned 18. My father and my uncles fought in World War II and my father in law was a Korean War veteran. I have a lot of respect for these people. I am in awe of their willingness to serve and die for our country.
About 15 years ago, I took my wife and kids to visit Washington D.C. I walked the Wall. While looking at all of the names, I broke down and cried uncontrollably. My 9 year old son did not know how to take the sight of his father crying to the point of getting down on his hands and knees. The thought of the thousands of people who were in my same age bracket who lost their lives was just too overwhelming for me to bear. I remember my wife took the kids away from me as she knew I needed my space.
Then I felt a hand on my shoulder. The hand was that of a man who was about 6 feet, seven inches tall (I am 5'6"). He, too, was crying uncontrollably. I stood up and he put his arm around my shoulders. I put my hand on his back (I couldn't reach his shoulder). We did not say anything to each other. We just stood there for a few minutes. The mere act calmed both of us down. Once we were able to regain composure - we just gave each other a slight nod and went out separate ways. We did not say anything to each other. We did not have to. Oh, by the way, this man is black and I am white. I thought about the significance of black and white men standing arm-in arm crying. Then I also thought that our different races did not matter and it should not have even been thought of as significant. Afterward, my son asked who the man was. I told him, I did not know his name, but he is a friend. It was an important thing for my son to see - so that's all that matters.
From then on, I had a new appreciation for the lives that were lost to allow all of us to keep our freedoms intact.
My son is in the Navy now. He is an Intelligence Office stationed in Korea. He had his weekend filled with the excitement as North Korea tested a nuclear weapon. He called today. My wife and I love talking to him and are making plans to visit him in a few months. I could not be more proud of a human being than I am of my son - especially today.
I love the military and have the utmost respect and admiration for anyone who has served our country in the armed forces.
Being in the Jacksonville, FL area where there are two major Naval Bases, I meet many former militray people. These bases are excellent sources of excellent employees. I volunteer often with the Transition Assistance Programs and can tell you that all employers should do everything they can to team up with the military transition groups. Since there is not a lot of hiring going in, it is a perfect time to get to know the individuals who are responsible for helping former military obtain jobs in the civilian world.
They are not as busy now - so get to know them before you need employees. If you wait until you need people, it will be too late to develop that necessary relationship.
To all of the people who have served and currently serving in the military. THANK YOU - from the bottom of my heart.
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