Your Total number of Employees

Your Payroll Frequency / Method

Your Workplace Safety Risk Factor

Your Employee Benefits Products Offering Level

Your Turnover Rate Per Year

Frequency of Employment "Issues / Problems"

What will you do with the Saved Time?

i.e., Number of terminations/new-hires in a year, divided by baseline number of employees.

Workplace Safety Risk Factor - on a scale of 1 to 10 examples would be:

1: totally administrative/clerical

2: exposure outside of office - sales, deliveries, etc., medical practice

3: restaurant

4: auto body shop

5: printing company

6: sheet metal shop

7: inside electricians

8: trucking

9: building erection

10: roofing

These are just examples.  Your exact profession/profile may not be listed here.

Cost "avoidance" is next to impossible to quantify, and/or outside the scope of this simple model.  So the cost reductions illustrated here are conservative numbers based on common things businesses do spend money on to "avoid" larger fines and lawsuits.

Many businesses now carry Employment Practices Liability Insurance (EPLI) and spend additional monies to protect themselves from the highly regulated and highly litigious employment environment.

A PEO client may be covered by ELPI insurance the PEO provides, and the legal relationship of co-employment further protects the client against employment risks.

A PEO's larger group may allow a client to receive lower WC costs.  Plus enhanced safety initiatives further reduce risk and improve employee productivity.

In addition to saving money on Employee Benefits through a PEO's larger group, many clients use this buying power to significantly enhance their benefits offering, at a fraction of the cost of doing so themselves.  This gives them a competitive edge in attracting and retaining the best employees.  Be sure to include your total costs (not just employer portions) of Medical, Dental, Life, Disability, etc.

The number shown here is conservative, as it assumes that all coverage is "employee only", with no additional dependents enrolled.

Included in PEO services is the handling of payroll through a very advantageous co-employment relationship that actually eliminates some tax and law requirements of the client company (they are handled through the PEO's Employer ID Number).

The number shown here is conservative, just addressing payroll.  But there's usually more… Additional costs replaced may include 125 plan fees, retirement plan fees, employment related legal costs, etc.   And other costs that may be reduced include drug testing fees, background checks and more.

If this Time is currently that of an administrative support person, leverage its value by having that person take administrative tasks away from employees who Drive Revenue Driver and Impact Margins, thus “giving” the freed up admin hours to those high value people.

If this Time is currently that of upper management employees who drive the business, then its value is immediately obvious, since they directly recover the time.

If these hours can be eliminated, ensure you enter the TOTAL cost of wages, taxes, and benefits.

Human Resources                         Benefits Management                     Workers Comp and Safety                     Payroll and Tax Admin

107 employment tasks, services and products are in this model.

Laws not applicable to the size business you entered are automatically not included in the time estimate.

If your company is NOT doing all or most of the remaining things, there would be great value in doing so, both from the aspect of controlling employment risk, and optimizing the performance of your employees.

PEO Value Illustrator Instructions:

Clicking Next will take you to a "Quik Profile", 8 question value estimater tool that only takes a minute or so.

PEOs provide great value to all small/mid sized businesses (SMBs) for many different reasons that will vary depending

on the client's type of business and employment profile.

  Advantages for a 20 employee landscaping firm will be different than those for a 12 employee CPA firm or a 40 employee manufacturer.

When you're done creating your own worksheet, use the print button at the left to print a copy,

and click Save Entries if you want your entries next time you visit.

This tool is just a quick way to conservatively 'ball park' the value your company may receive from [demo PEO/HRO].  It does not constitute a proposal nor a quote for services.  When you're done please give us a call for no-obligation discussion about how we might help YOUR company with its unique needs.