Thousands gather annually in New York in the spring to get more than an academic discussion of outsourcing at NY HR Week. They get down and dirty with buyers, providers, and other industry thought leaders in an all-out, two-day HRO festival.
How do you capture and keep the attention of some 4,000 high-level HR professionals for two days? Try sending them to HRO World as this year’s NY HR Week, which encompasses HRO World, drew a record number of attendees and exhibitors.
HRO World’s chairman looks back at HRO World 2003-2005 and helps us look forward to 2006.
April 26 and 27 will represent either the last HRO World Conference in New York City of which I will be chairman, or not.
St. Petersburg, FL-based First Advantage, a global risk mitigation and business solutions provider, has acquired SkillCheck, Inc., an international pre-employment testing and educational skills assessment company. Following the recent acquisitions of applicant tracking software and recruiting services, First Advantage has created the Hiring Solutions Group within the employer services segment. This group will be led by Rick Mansfield, executive vice president of the Hiring Solutions Group, and former chief marketing officer of First Advantage Corporation.
Headquartered in Burlington, MA, SkillCheck serves thousands of organizations and more than 15,000 installed users worldwide. Since its inception in 1988, the company has provided skills testing products and services to staffing agencies, corporate human resources departments, training organizations, and schools.
“I am thrilled to be kicking off the year with the addition of advanced skills testing services to our employer services offering,” said John Long, chief executive officer of First Advantage Corporation. “This latest product expansion continues to solidify the depth and breadth of our services package for human resources professionals worldwide.”
North Carolina-based PEO Network has purchased the Aegis Group, which was founded by T. Joe Willey, an early pioneer of employee leasing, known today as professional employer organizations (PEOs).
PEO Network is a consulting firm to the HRO industry.
"We’re pleased and honored to continue the legacy of T. Joe Willey, he’s an icon in our industry," said Carrie Aaron, president of PEO Network.
PEO Network plans to market Aegis Group material through a new seminar series called "Agency HRO Solutions." This seminar will educate owners of insurance agencies on the synergies of adding an HRO division to their companies.
"Independent Insurance Agencies have the highest rate of long-term success in launching a PEO because the barriers to entry are currently very high and they bring the right tools to the business," Aaron said.
Outsourcing helped a legendary Florida Keys resort reduce workers’ compensation claims.
Holiday Isle Beach Resorts and Marina is a sprawling four-resort complex that includes hotels, restaurants, shops, recreation, and entertainment in Islamorada, Fla. We have more than 275 employees and all the complex payroll, risk, safety, and human resource issues that come with such an expansive seasonal organization.
FINDING CALM IN THE CHAOS
We first began utilizing professional employer organizations (PEOs) several years ago as a resource for reduced workers’ compensation rates. We had to go through a number of PEO relationships, however, before finding the right outsourcing group that took the time to partner with us to establish compliance procedures that would really get a handle on reducing costs. It got to the point where our average annual costs for compensation claims was well into the six figures. And that was before September 11th.
The entire hospitality industry experienced considerable loss in occupancies and halting reservation projections during the latter part of 2001. Rising claims costs and the severe drop in revenue could have spelled disaster for what has become something of a legendary resort (not to mention our “world-famous” Tiki Bar). Thankfully, by that time, we had signed with AlphaStaff.
AlphaStaff is a PEO that already had customers in the hospitality industry, so they understood the destabilization that we were experiencing after 9/11. Plus they established processes for our resort community that forced us to review how we trained our employees on safety and human resource issues and how we approached our staffing in general.
A detailed survey of our health and safety programs revealed a number of improvements that could be implemented to create a safer working environment and control costs. AlphaStaff laid out causation factors for claims from the past three years. They presented a loss control service plan–complete with goals, target dates, and formal reviews. They even sent our head of security to a three-day safety management class so he could better understand the processes. He returned enthused and ready to work hand-in-hand with our outsource partner.
Such safety programs do not even address everything our outsourcer offers in regard to payroll, technology integration, and human resource management, as well as their disaster preparedness in the face of hurricane devastation, which is extremely important for any business located in the Keys. They helped us establish “best practices” with reporting payroll and provided reports for auditing that ensured our employees are accurately compensated. They have provided training on documentation for new hires and other required documents for account maintenance, and supplied customized reports to assist with our GL accounting. They keep us informed of any new HR laws, such as the recent FLSA changes, to ensure there’s no negative impact, or at least that the impact is mitigated. But it’s their focus on safety that reduced our claims cost from a couple hundred thousand dollars in years past to less than $50,000 in 2004 and projecting to almost half that amount in 2005–more than an 85 percent drop in claims.
Possibly the most beneficial aspect to this particular outsourcing experience was how extremely interactive our PEO was with our employees. They made sure that everyone, from our senior management to our janitorial staff, understood their contribution to maintaining a safe work environment. AlphaStaff made safety education a priority and engaged with every department until the entire organization was on board. An additional benefit to this employee focus has been a significant increase in employee retention. The heightened awareness of all safety issues has proven to be a wonderful demonstration of how much Holiday Isle values our workforce, and our employees have responded appreciatively.
All PEOs are not created equal. But if a hospitality, or any, organization can find a vendor that takes so much interest in reducing risk and touting safety throughout the company like AlphaStaff has done for Holiday Isle, we would recommend they sign on immediately. Then maybe the HR manager making such a cost-conscious decision on behalf of their organization can reward themselves with a trip to the Florida Keys, of course!
One of the heavyweights in the enterprise outsourcing market, New Delhi, India-based Gecis Global has changed its identity to Genpact. The former GE unit said the change was to better convey its global scope.
We chose [the new name] because it so aptly communicates our brand promise generating value, commitment, partnership and impact, said Pramod Bhasin, president and chief executive officer, Genpact
Growing Defense and Safety Contractor Sought Partner to Upgrade All HR Functions
BOCA RATON, FL September 21, 2005 The Protective Group, Inc., a Miami-based company specializing in the manufacturing of personnel protective material for use in military, security and firefighting applications, and AlphaStaff Group, Inc., a market leader in Human Resource Outsourcing (HRO), today jointly announced that they have entered into a partnership through which AlphaStaff will provide the Protective Groups more than 200 employees (including its subsidiaries of Protective Materials and Chieftain Safety) with critical support in all areas of human resource administration
HSAs Help Business Owners and Their Employees Control Health Care CostsMIAMI–(BUSINESS WIRE)–May 31, 2005–ADP TotalSource, Inc., oneof the nation’s largest Professional Employer Organizations (PEOs),and part of the Employer Services division of ADP, Inc., todayannounced it is expanding its benefits program to offer health plansthat are compatible with health savings accounts (HSAs). EffectiveJune 1, 2005, clients may select HSA-compatible high deductible healthplans (HDHPs) as part of the comprehensive suite of health benefitsoffered by ADP TotalSource, Inc. Clients who elect an HDHP through ADPTotalSource, Inc. will make their worksite employees eligible toestablish Health Savings Accounts (HSAs) through JPMorgan Chase BankN.A., a leading provider of HSAs.
HSAs, which were authorized by the Medicare Prescription Drug,Improvement and Modernization Act of 2003, are portable health savingsaccounts that individuals can use to pay for qualified medicalexpenses.
“With health care costs far outpacing wage growth during the pastseveral years, employers large and small are challenged to provideaffordable coverage,” said Carlos Rodriguez, ADP TotalSource’sdivision president. “We’re regularly evaluating benefits that we canoffer to our clients to help them attract and retain the bestemployees. The availability of HSA-compatible HDHPs means thatemployees will be eligible to establish HSAs, and this will provideour clients and worksite employees with a means for reducing theoverall cost of health insurance while encouraging employees to besmarter health care consumers. To help our clients decide whether theHDHP/HSA option is right for their business, we offer access toexpertise from our human resources representatives and a variety ofself-service decision support tools, including cost calculators,educational Web casts and plan comparison tools.”
TAMPA, Fla., May 19, 2005 – SCI, a national leading Professional Employer Organization (PEO), announces the opening of a new office in New Delhi, India, and the expansion of its Atlanta operation center. The expansion comes as the company scales to meet increasing demand for outsourced human resources (HR) services
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