The PEO Bunch

PEO Case Studies: Here’s the story of several happy HRO families.

by Margo Alderton

Picking the right HRO partner is a deciding factor in improving your company’s chance of success… or, seen the other way, lowering your risk of failure. What makes a successful pick? Where are the pitfalls? These case studies tell all.

Conventional wisdom says that small- and mid-sized businesses fail 90 percent of the time. In the introduction to the reality TV show The Restaurant, the 90 percent failure rate is thrown around as casually as a plate of deli meat. The actual number is quite different, quite dependent on your choice of partners, and especially sensitive to your pick of an appropriate HRO provider.

Statistics from Professor H.G. Parsa of Ohio State University, as quoted in USA Today May 6, 2004, found that the actual three-year failure rate for restaurants is 59 percent. For small- and mid-sized businesses overall, the number is 50 percent over five years according to David Birch, a small-business research expert. Yet for those small businesses who choose HRO services from professional employer organizations, or PEOs, the anecdotal evidence is that the failure rates are much lower, probably as low as 15 percent for companies with less than 500 employees and 5 percent for 500+ employee companies, according to HRO Today’s informal survey of PEO top management.

What are the factors that go into picking the right HRO provider for small- and mid-sized businesses? How are companies that go the HRO route different from their go-it-alone counterparts? What is the experience of those who have partnered with a PEO? What are the risks and rewards? For these answers and many more, HRO Today turned to some of the leading PEO providers and their clients for frank answers and very revealing lessons. Here are their stories.

Finding Precisely the Right Partner
For Precyse Solutions, a successful HR outsourcing was all about finding the right partner.

Finding the Right Partner at the Right Time
A time and a place for HRO: for this growing company, HRO was a question of when, not if.

Man Bites Dog: Small or Large Provider?
Regus knew that one day they were going to outsource HR. The question was, what type of company could best meet its needs?

A Shot of Employee Satisfaction
Jose Cuervo Internationals HRO satisfies its highly discerning customers & Cuervos employees.

Posted June 10, 2004 in Engaged Workforce

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