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 www.focus1hr.com

Austin

12885 Research Blvd

Suite 210

Austin, TX  78750

 

Corpus Christi

101 N. Shoreline Drive

Suite 304

Corpus Christi, TX  78401

 

Rio Grande Valley

929 E. Esperanza

Suite 9

McAllen, TX 78501  

 

PEOs can step in to rescue business owners from red tape purgatory, helping to reduce their exposure to fines and other penalties, which is no small task.
                          American Payroll
                                    July 2007
Small to mid-sized companies that hire PEOs reap additional benefits. They're able to offer their employees a broader array of life insurance, health insurance, and 401(k) packages. Legal risk and liability surrounding HR compliance fall to the PEO, and not the company doing the outsourcing.
               Austin Business Journal
                                     Feb 2006
 

 

Professional Employer Organizations (PEOs) are a part of the fast-growing human resources outsourcing (HRO) industry - and a major reason for the HRO industry's rapid ascent to become one of the fastest growing industries of the last 20 years.

Professional Employer Organizations provide companies the opportunity to lower costs and exposure to employment related risks by outsourcing the management of payroll, employee benefits, safety & workers' compensation, and other human resources responsibilities.
Business owners and managers face the ever-increasing complexity of employment laws, regulations, risk and exposure management, and compliance issues. Just handling payroll for a dozen employees can be challenging, with complicated rules on calculating child support and garnishment withholdings, the proper sequence for pre-tax benefit and other deductions, whether certain deductions qualify as pre-tax or not - not to mention the calculation of payroll taxes. 

The PEO takes legal and contractual responsibility for these matters through its co-employment relationship, which frees the business owner and management team to concentrate on their company's core business functions.
Most small and mid-sized businesses (under 250 employees) don't have the day to day need for a team of experts in the wide ranging field of human resources including legal compliance, workplace safety, payroll, tax, unemployment, and workers' compensation claims management. The PEO has experts in all these areas on staff and available to help whenever necessary, but without the cost of an entire HR department's salary.

Focus1 manages all the responsibilities typically associated with a traditional in-house HR department much more cost-effectively than a small or mid-sized business can operate such a department. We provide HR support from hiring to terminations and all stages between including new hire enrollment, benefits enrollment, employee handbooks, and ongoing HR support services.
Outsourcing human resources is a proven way to improve efficiency, effectiveness, and minimize business risk. Clients reduce the amount of time spent on traditional "people and paper" management functions. Statistics show that a company's employee management practices have a direct impact on performance and profitability. PEO industry surveys continue to reflect that client companies improve operational efficiency, are exposed to fewer workplace-related lawsuits, and more importantly - improve profitability. 
While the human resources outsourcing industry is fairly young - having begun in the 1970's - the real growth has only occurred in the past ten years or so. The industry has seen growth at the rate of more than 20% a year during most of the last decade. And, while early on, primarily small employers found the services of a PEO to fit their business needs, increasingly larger and more diverse companies have contracted with human resources outsourcing providers  as companies like Focus1 HR Group have begun to offer more comprehensive HR management services and introduced more flexible ASO arrangements that appeal to larger employers.

Today, you can find companies in such varied industries as construction, manufacturing, retail, high-tech, and even large publicly traded companies such as Merck-Medco, Best Buy, and Unilever all utilizing the services of a human resources outsourcing provider.

A large driver for the industry's growth has been technology. Providers such as Focus1 HR Group offer web-based tools for clients and employees to enter and manage employee information, review payroll history and reports, and also offer customized reporting services that enable clients to quickly and easily enter critical labor cost information into the company's financial records.

Another critical driver for growth is the ever-increasing challenge of legal and regulatory compliance. The number of federal, state, and local regulations employers must comply with has more than doubled in just the last 20 years.  PEOs maintain trained HR professionals who keep current with the changing guidelines and help client companies stay current and compliant.