With hundreds of Employee Leasing companies operating in the United States, The process of selecting a Employee Leasing company can be time consuming and frustrating. A Google search may turn up hundreds of Employee Leasing company names yet it provides no insight into the viability of any Employee Leasing arrangement viable for your company. Many states require a Employee Leasing company to be licensed in order to do business with you. In addition, each Employee Leasing company has different risk tolerance (for workers’ compensation insurance), health insurance offerings and general HR service capabilities. At StaffMarket we advise clients to run a StaffMarket RFP. The RFP process matches your company profile and service requirements against our extensive database of Employee Leasing company profiles (nearly all of the Employee Leasing companies in the nation!) We profile each Employee Leasing company on over 150 delivery points to ensure that you quickly target the most appropriate providers. The StaffMarket RFP process will identify three to ten companies that will provide a quote for your business. Of course selecting a Employee Leasing company is about more than just the Employee Leasing price. You will need to feel comfortable with the entire Employee Leasing offering, their financial stability and insurance coverage they are offering. In addition, reviewing the way a Employee Leasing company responds to your StaffMarket RFP and follows up with you about questions you have is a good indicator of how attentive they will be if you become their client. A careful courtship makes a happy marriage!
In addition, it makes sense to ask for proof of insurance coverage. All StaffMarket members can provide a copy of their master policies for your review. Finally it is a good idea to ask for client references. StaffMarket can assist with arranging a reference call for any Employee Leasing company, at your request.
StaffMarket has prepared an entire section on our web site to help explain Employee Leasing pricing. While at first it may seem arcane, with some study it makes good sense. In general if your company has relatively low wage employees like food service, a Employee Leasing company will provide you a “bundled” quote that charges an administrative fee based on the total wages each pay period. Rates vary from 3-5%. If you company has relatively high wages and low workers’ compensation risk, most PEOs have moved to a fee passed on a flat dollar charge each month. These amounts vary from $500 to $900 per employee per year.
Since co-employment is a contractual assignment of employment related responsibilities between your company and a Employee Leasing company, you need to understand the agreement. This document defines what you and the Employee Leasing company are responsible for in the ongoing relationship. Click here for an example of a Employee Leasing company - PEO Client service agreement (CSA) . Most Employee Leasing companies want a 12 month agreement with a 30 day termination provision.
When you are ready to evaluate Employee Leasing quotes, StaffMarket has prepared some Excel based tools that enable easy understanding of the value offered in each Employee Leasing company proposal. Our dedicated staff of Employee Leasing experts can prepare a custom analysis for you upon request.
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