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Total HR Management Recognized As ESAC Accredited Professional Employer Organization At NAPEO Conference

In Phoenix at the NAPEO conference, Total HR Management was officially recognized as an ESAC accredited PEO. Cana Tighe, the COO of Total HR Management and the head of the New York office, proudly accepted the award. The recognition by NAPEO is an affirmation of the quality performance that Total HR Management supplies as a human resources outsourcing services provider.

ESAC Accreditation for Total HR Management

ESAC, NAPEO, Cana Tigher

Cana Tighe Accepts ESAC Accreditation for Total HR

Responding to the needs of its membership, the National Association of Professional Employer Organizations instituted a strategic plan to promote the financial, operational, and ethical performance practices sought by consumer and regulators. The Employer Services Assurance Corporation (ESAC) is similar to the assurances offered by FDIC for the banking industry. ESAC accreditation includes $15 million in surety bond coverage as financial assurance for clients and employees of accredited PEOs.

It is important to note that less than 10% of PEOs receive this accreditation. Total HR Management works hard to provide our clients with the highest quality in professional employer organization services. By achieving ESAC accreditation, the hard work for clients by Total HR Management is being recognized.

Professional Employer Organization Excellence

By verifying compliance with important industry practices and ensuring financial responsibility ESAC accreditation increase a PEO’s credibility, attracts more distinguishing clients, and dramatically increase client retention. An independent non-profit corporation, the Employer Services Assurance Corporation is managed by a board of directors that includes PEO industry attorneys, CPAs, and independent directors representing over 100 years of combined PEO industry regulatory experience. ESAC has been building trust for the PEO industry since 1995.

NAPEO endorses and strongly supports ESAC efforts to promote professional practices that address financial, operational, and ethical performance sought by PEO customers. A broad based Industry Advisory Council developed ESAC standards. Total HR Management is honored to have been recognized as an ESAC accredited professional employer organization. The accreditation is given only to the very best professional employer organizations that reflect the high standards of the ESAC.

Total HR Management = Reliable Business Success

As the Chief Executive Officer of Total HR Management and the head of the Southern California office, James Harwood attended the NAPEO conference in Arizona as well. He watched from the sidelines as Cana Tighe, the Chief Operating Officer of Total HR and his sister, accepted the award for the company. Like a supportive family that comes through for their clients, Total HR Management has developed a proven track record of providing the very best in professional employer organization services for companies across the country.

PEO Certification Legislation Small Business Efficiency Act Approved And Signed Into Law By The President

small business efficiency act, peo, professional employer organization

Small Business Efficiency Act

Total HR Management marks both the passage of the Small Business Efficiency Act by Congress and the signing into law of the act by President. Approved by the Senate on December 16 after being passed by the House of Representatives two weeks earlier, the bill was signed into law by President Barack Obama on December 19. The voluntary certification programs for Professional Employer Organizations will now help to separate the wheat from the chaff, allowing responsible HR outsourcing companies like Total HR Management to lead the way.

The Small Business Efficiency Act

The PEO voluntary certification program will be administered by the IRS and allow the quality Professional Employer Organizations to rise above the second-rate companies that have damaged the industry in the past. Backed by the National Association of Professional Employer Organizations, the passage of the bill is a true step in the right direction.

NAPEO Chairman Brent Tilson expressed his satisfaction with the approval; “This is truly a historic moment for the PEO industry… We urge the president to sign the extenders bill and we look forward to working with the administration on the regulations so we can get the necessary framework in place to broaden our reach within the small business community.”

Professional Employer Organizations

Under the legislation, PEOs can become IRS certified by meeting certain financial standards. Rather than being easy obstacles to navigate, the rigorous standards include bonding and independent financial audit requirements. By satisfying these reporting obligations and other standards set by the IRS, the weeds will be cut from the PEO industry, allowing the quality companies to take deeper root and provide better services

Once certified, a PEO would take sole liability for the collection and remission of federal employment taxes for client employees. According to NAPEO, companies that contract with a Professional Employer Organization would be assured they would not be liable for employment taxes once they remit their employees’ tax withholdings to the PEO. NAPEO believes such assurances should lead to a needed expansion of the PEO industry by fostering confidence.

Value Of Professional Employer Organizations Study By NAPEO Reveals Faster Growth, Lower Employee Turnover & Higher Business Survival Rates

Faster Growth, Lower Turnover & Higher Business Survival Rates =

                                         It Just Works…

In a report on a convincing study, NAPEO revealed that companies, which chose to work with PEOs, have lower employee turnover and higher business survival rates respectively. Released during the annual NAPEO conference in Miami, the study underscores the true value of professional employer organizations. From past and present experience with a long list of loyal client companies, Total HR Management is not surprised by the positive results of the NAPEO study.

NAPEO Study By Two Respected Economists

napeo study, pat cleary, it just works

NAPEO Study: It Just Works…

Achieved by the respected economists Laurie Bassi and Dan McMurrer, the 2014 NAPEO study was a follow-up to a report released in 2013 that clearly showed that small businesses in PEO arrangements grow faster than non-PEO using competition. PEOs provide payroll, benefits, recruitment and selection, and other HR related services to small and mid-sized companies. Through PEOs, employees at small to mid-sized businesses gain access to quality benefits typically only ever provided by large companies.

In a statement about the success of the 2014 study, Pat Cleary, NAPEO president and CEO, explained the positive results of the outcome: “”It’s very simple: Small businesses that use PEOs grow 7-9 percent faster, have employee turnover that is 23-32 percent lower, and are 50 percent less likely to go out of business than companies that don’t use PEOs. This proves through hard data the value proposition of PEOs.”

Impressive NAPEO Study Figures Cannot Be Ignored

An impressive figure in the study was the drastic reduction in employee turnover rate for companies using PEOs. While the overall employee turnover rate in the United States is approximately 42 percent per year, companies using PEOs experience only a 28-32 percent rate. When you are talking about keeping an additional 10 to 15 percent of your employees working and happy, the obvious value of PEO relationships is clear. After all, such a percentage is a definitive edge that could have an actual impact in a competitive business environment.

Without question, however, the most impressive value-driven outcome of the 2014 NAPEO study was the resonating fact that businesses partnering with PEOs are 50 percent less likely to fail from one year to the next when compared to similar companies in the business population as a whole.

Pat Cleary Of NAPEO Illustrates The PEO Edge

Proud of the accomplishments of American PEOs, Pat Cleary expressed his faith in the positive results of the 2014 study when he said, “”Across all industries, this study shows that there are clear advantages for PEO clients on two of the most fundamental issues faced by any business: retention of employees and continued survival… PEOs make it possible for companies to retain their best and brightest employees and focus on their core business, which helps them survive and grow.”

James Harwood and the Human Resources Professionals and Managers at Total HR Management could not have said it any better. In the competitive post-recession economy of the early 21st century, a professional employer organization like Total HR Management provides small to mid-sized companies with the extra edge they need to succeed. As Total HR Management states on The Total HR Difference section of the website, “Most importantly, we consistently deliver on our promise to help you work “on your business” and not “in your business”…. Our clients stay with us because we follow through with our promises, delivering consistent and reliable services.” Such service is why PEOs are so successful today.

NAPEO Provides PEO Fact Sheet To Support The Small Business Efficiency Act In Washington

In support of the Small Business Efficiency Act, James Harwood of Total HR Management travelled with NAPEO to Washington in June. In order to help HR outsourcing professionals explain the value of a professional employer organization to their congressman, NAPEO provided a PEO fact sheet that helped illuminate the nature and value of the business. The information provided in this PEO fact sheet is relevant to both clients and potential clients of professional employer organizations.

PEO Fact Sheet & Small Business Success

The PEO fact sheet in support of the Small Business Efficiency Act included the following 5 points that are excerpted in part:

  1. Over 250,000 small and mid-sized businesses and 2.5 million people are part of PEO arrangements.
  2. The average size of a small business client of a NAPEO member is 20 employees.
  3. Small businesses that use PEOs grow faster than those that don’t. Since 2010, employment growth among PEO clients has been 9 percent higher than other small businesses.
  4. While only 27 percent of small businesses offer employee retirement plans, 95 percent of NAPEO’s members offer retirement plans to their small business worksite employees.
  5. PEOs reduce the basic costs of workers’ compensation by as much as 25 percent for small business enterprises.

Professional Employer Organizations Save Time & Money

peo fact sheet

PEO Fact Sheet in Washington

At this stage of the game, 40 states have adopted some form of PEO legislation and PEOs operate in all 50 states. As the PEO Fact Sheet explains, a professional employer organization  provides a small business with the advantage of having a human resources department, a team of experienced HR professionals, while only having to pay a small portion of the expenses. By saving money for companies, helping them provide better benefits and payroll services, and protecting them from potential sources of liability, a professional employer organization opens the door to much greater success.

At Total HR Management, the HR professionals like to say that we help our clients do what they do best: work on their business, instead of getting lost in the bureaucracy and the minutiae of their business. To find out about the tailored options available at Total HR, please contact us by calling toll free (800) 975-5128.

 

 

James Harwood Of Total HR Appeals To Congressman Schiff For Support Of NAPEO And The Small Business Efficiency Act

congressman schiff, peo, sbea

Congressman Schiff with James Harwood

As part of his trip to Washington DC to promote PEOs and the Small Business Efficiency Act on Capitol Hill, James Harwood of Total HR Management met with California Congressman Schiff on June 11, 2014.  As the Representative for the 28th District in California, Congressman Adam B. Schiff has been a vocal supporter of lending a helping hand to small businesses. James Harwood discussed with Congressman Schiff how PEOs are helping small businesses in his district and all over the state of CA.

In light of the ability of PEOs to allow small business owners to focus on what they do best – working on their business and not in the bureaucratic labyrinth of their business – James Harwood also asked for Congressman Schiff’s support of NAPEO and the SBEA (Small Business Efficiency Act).  Throughout his tenure in Washington, Congressman Schiff has focused on improving the economy by helping small businesses move beyond the recent recession. The ultimate goal  for such company owners is to find the financial stability they need to be profitable and productive.

Congressman Schiff’s Support For Small Business

Since Congressman Schiff states on his website that he is “looking for common sense approaches to help small businesses grow and add jobs again,” James Harwood believes common ground could be found between his legislative agenda, and the backing of NAPEO and the SBEA (Small Business Efficiency Act). By outsourcing human resources and becoming part of a pool of companies to help lower the costs of both benefits administration and insurance acquisition, small businesses can achieve a balance and reduce costs when they team up with Professional Employer Organizations.

On his Congressional website, Congressman Schiff makes it very clear that he believes, “Small businesses have always been the true engine of economic growth in challenging times and have helped power the country out of every recession in our history. Unfortunately, small businesses are suffering from an uncertain economic climate, an overly complex tax code, and the accelerating cost of health benefits.” Although Professional Employer Organizations cannot solve every problem facing small business owners, they are a major step in the right direction for such companies.

A Productive Meeting With Congressman Schiff

After a very productive meeting with Congressman Adam B. Schiff, James Harwood of Total HR Management hopes NAPEO and the Small Business Efficiency Act has another positive voice in support of them on Capital Hill. By legitimizing Professional Employer Organizations through voluntary certification and instituting a process by which PEOs can effectively work with the IRS as payroll providers, SBEA sends a needed message to the small business owner in the United States. With a proactive leaders like Congressman Schiff supporting the process, such a message is sure to be conveyed, laying a durable and smooth surface on the road of ongoing economic recovery and small business success.


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