Professional Employment Organizations (PEO) provide businesses with specialized management expertise as needed to improve profitability in the areas risk management. But what is “risk management” and how do PEO’s help?

Risk management is a structured approach to managing uncertainty related to a threat, a sequence of human activities including: risk assessment, strategies development to manage it, and mitigation of risk using managerial resources. The strategies for managing risk include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk.

Here are some (but not all) examples of how PEO’s traditionally assist businesses with risk management:
   Managing Workers’ Compensation insurance
   Performing Safety and Loss Prevention
   Providing Safety training, including OSHA mandated training
   Implementing and developing Safety Programs
   Assisting with OSHA compliance
   Reviewing the OSHA 300 log
   Customizing Safety Manual, including OSHA-mandated documentation
   Managing Claims for work-related injuries
   Performing Accident investigations and follow-ups
   Implementing Return-to-work programs
   Performing Inspections, reports and data tracking as required
   Provinding Drug testing scheduling and coordination

  There are volumes of local, state and federal employment laws for businesses to keep up with these days.  For businesses to adequately protect themselves it is essential that they be meticulous about record keeping.  Below is a partial list of checklists, forms and reports that businesses need to retain.

  Applicant Criminal Background
  Applicant Reference Check
  Applicant Screening Evaluations
  Assignment Status Changes
  Assistance Request Forms
  Benefit Applicaitons
  Compensation Records
  Disciplinary Action Records
  Emergency Contact Information
  Employment Applications
  Exit Interview Records
  General Safety Orientation
  Incentive/Bonus Plans
  Investigatory Records
  Leave of Absence
  New Hire Orientation Checklist
  Offer/Acceptance Letters
  Payroll Deduction Authorizations
  Performance Appraisals
  Position Description
  Proof of Employment eligibility
  Safety Meeting Topics
  Tax Withholding Forms
  Training & Development Records
  Vacation/Holiday Requests

If record keeping is not your forte, consider outsourcing this crucial responsibility to a Professional Employment Organization (PEO).

  The Tuscon Citizen published great article on the role Professional Employers play during a recession.  Here’s an excerpt:

In today’s market, owners of small and medium-sized businesses may be forced to ask themselves a few critical questions:
“Will a recession affect my business?”
“How can I be sure my employees are taken care of?”
“How can I be successful when others are struggling?”
One way business owners can begin to address these difficult questions is by using the services of a professional employer organization.
A PEO serves as a human resources department for small- and medium-sized businesses. By entering into a relationship with a PEO, companies receive assistance with payroll processing, employee benefits management and compliance with the growing number of federal and state employer-related laws and regulations.
In short, PEOs can help small- and medium-sized businesses manage risk. This is essential during periods of economic downturn when there are more workers’ compensation claims and terminations, and increased opportunities for unemployment-related risk.

For the complete article CLICK HERE.

  I read a noteworthy article from 4Hoteliers.com about who should and should not consider outsoucing their Human Resource & Payroll functions.  Below is an excerpt.  Take a look at what they said.

If you have fewer than 100 employees, the answer is yes. At this size, you often don’t have the resources for an in-house HR staff, so outsourcing is just right for you. You don’t have to worry about managing all the details that are so critical to HR in your business, and most small-business owners just don’t have the skills and experience to do so. Remember, HR functions must be handled correctly as close to 100 percent of the time as possible; slip-ups can cause your business major problems…whatever you decide, make sure to keep your employees in the loop. They will appreciate knowing that you are seeking the most affordable solution for the business while doing your best to meet their needs.

All in all I have to agee their assessment.