GVHR » Topics » Human Resource Outsourcing Industry

These excerpts taken from the GVHR 10-K filed Mar 16, 2009.

Human Resource Outsourcing Industry

 

The Company believes that small and medium-sized businesses are the primary drivers of economic growth and the chief source of job growth. These businesses are also potential HR outsourcing customers since many desire to outsource non-core business functions, reduce regulatory compliance risk, rationalize the number of service providers that they use, enhance their benefit offerings and reduce costs by integrating HR systems and processes.

 

The National Association of Professional Employer Organizations (“NAPEO”) defines the PEO industry as follows:

 

Professional employer organizations (PEOs) enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation. PEO clients focus on their core competencies to maintain and grow their bottom line.

 

Businesses today need help managing increasingly complex employee related matters such as health benefits, workers’ compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. They contract with a PEO to assume these responsibilities and provide expertise in human resources management. This allows the PEO client to concentrate on the operational and revenue-producing side of its operations.

 

A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the client’s worksite and by contractually assuming certain employer rights, responsibilities, and risk.

 

PEOs provide:

 

·  Relief from the burden of employment administration;

 

·  A wide range of personnel management solutions through a team of professionals;

 

·  Improved employment practices, compliance and risk management to reduce liabilities;

 

·  Access to a comprehensive employee benefits package, allowing clients to be competitive in the labor market; and

 

·  Assistance to improve productivity and profitability.

 

Human
Resource Outsourcing Industry



 



The Company
believes that small and medium-sized businesses are the primary drivers of
economic growth and the chief source of job growth. These businesses are also
potential HR outsourcing customers since many desire to outsource non-core
business functions, reduce regulatory compliance risk, rationalize the number
of service providers that they use, enhance their benefit offerings and reduce
costs by integrating HR systems and processes.



 



The National
Association of Professional Employer Organizations (“NAPEO”) defines the PEO
industry as follows:



 



Professional employer organizations (PEOs) enable clients to
cost-effectively outsource the management of human resources, employee
benefits, payroll and workers’ compensation. PEO clients focus on their core
competencies to maintain and grow their bottom line.



 



Businesses today need help managing increasingly complex employee
related matters such as health benefits, workers’ compensation claims, payroll,
payroll tax compliance, and unemployment insurance claims. They contract with a
PEO to assume these responsibilities and provide expertise in human resources
management. This allows the PEO client to concentrate on the operational and
revenue-producing side of its operations.



 



A PEO provides integrated services to effectively manage critical human
resource responsibilities and employer risks for clients. A PEO delivers these
services by establishing and maintaining an employer relationship with the
employees at the client’s worksite and by contractually assuming certain
employer rights, responsibilities, and risk.



 



PEOs provide:



 



·  Relief
from the burden of employment administration;



 



·  A wide
range of personnel management solutions through a team of professionals;



 



·  Improved
employment practices, compliance and risk management to reduce liabilities;



 



·  Access
to a comprehensive employee benefits package, allowing clients to be
competitive in the labor market; and



 



·  Assistance
to improve productivity and profitability.



 



Human
Resource Outsourcing Industry



 



The Company
believes that small and medium-sized businesses are the primary drivers of
economic growth and the chief source of job growth. These businesses are also
potential HR outsourcing customers since many desire to outsource non-core
business functions, reduce regulatory compliance risk, rationalize the number
of service providers that they use, enhance their benefit offerings and reduce
costs by integrating HR systems and processes.



 



The National
Association of Professional Employer Organizations (“NAPEO”) defines the PEO
industry as follows:



 



Professional employer organizations (PEOs) enable clients to
cost-effectively outsource the management of human resources, employee
benefits, payroll and workers’ compensation. PEO clients focus on their core
competencies to maintain and grow their bottom line.



 



Businesses today need help managing increasingly complex employee
related matters such as health benefits, workers’ compensation claims, payroll,
payroll tax compliance, and unemployment insurance claims. They contract with a
PEO to assume these responsibilities and provide expertise in human resources
management. This allows the PEO client to concentrate on the operational and
revenue-producing side of its operations.



 



A PEO provides integrated services to effectively manage critical human
resource responsibilities and employer risks for clients. A PEO delivers these
services by establishing and maintaining an employer relationship with the
employees at the client’s worksite and by contractually assuming certain
employer rights, responsibilities, and risk.



 



PEOs provide:



 



·  Relief
from the burden of employment administration;



 



·  A wide
range of personnel management solutions through a team of professionals;



 



·  Improved
employment practices, compliance and risk management to reduce liabilities;



 



·  Access
to a comprehensive employee benefits package, allowing clients to be
competitive in the labor market; and



 



·  Assistance
to improve productivity and profitability.



 



These excerpts taken from the GVHR 10-K filed Mar 17, 2008.

Human Resource Outsourcing Industry

        The Company believes that small and medium-sized businesses are the primary drivers of economic growth and the chief source of job growth. Dun & Bradstreet estimates that during 2007, 46% of the U.S. workforce was employed at these companies.

        These businesses are also potential HR outsourcing customers since many desire to outsource non-core business functions, reduce regulatory compliance risk, rationalize the number of service providers that they use, enhance their benefit offerings and reduce costs by integrating HR systems and processes.

        The National Association of Professional Employer Organizations ("NAPEO") defines the PEO industry as follows:

      Professional employer organizations (PEOs) enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation. PEO clients focus on their core competencies to maintain and grow their bottom line.

      Businesses today need help managing increasingly complex employee related matters such as health benefits, workers' compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. They contract with a PEO to assume these responsibilities and provide expertise in human resources management. This allows the PEO client to concentrate on the operational and revenue- producing side of its operations.

      A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the client's worksite and by contractually assuming certain employer rights, responsibilities, and risk.

3


      PEOs provide:

      Relief from the burden of employment administration.

      A wide range of personnel management solutions through a team of professionals.

      Assistance to improve employment practices, compliance and risk management to reduce liabilities.

      Access to a comprehensive employee benefits package, allowing clients to be competitive in the labor market.

      Assistance to improve productivity and profitability.

Human Resource Outsourcing Industry



        The Company believes that small and medium-sized businesses are the primary drivers of economic growth and the chief source of job growth. Dun & Bradstreet
estimates that during 2007, 46% of the U.S. workforce was employed at these companies.




        These
businesses are also potential HR outsourcing customers since many desire to outsource non-core business functions, reduce regulatory compliance risk, rationalize the
number of service providers that they use, enhance their benefit offerings and reduce costs by integrating HR systems and processes.



        The
National Association of Professional Employer Organizations ("NAPEO") defines the PEO industry as follows:






      Professional
      employer organizations (PEOs) enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation. PEO clients
      focus on their core competencies to maintain and grow their bottom line.



      Businesses
      today need help managing increasingly complex employee related matters such as health benefits, workers' compensation claims, payroll, payroll tax compliance, and unemployment insurance
      claims. They contract with a PEO to assume these responsibilities and provide expertise in human resources management. This allows the PEO client to concentrate on the operational and revenue-
      producing side of its operations.



      A
      PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an
      employer relationship with the employees at the client's worksite and by contractually assuming certain employer rights, responsibilities, and risk.





3











      PEOs
      provide:




      Relief
      from the burden of employment administration.


      A
      wide range of personnel management solutions through a team of professionals.


      Assistance
      to improve employment practices, compliance and risk management to reduce liabilities.


      Access
      to a comprehensive employee benefits package, allowing clients to be competitive in the labor market.


      Assistance
      to improve productivity and profitability.




This excerpt taken from the GVHR 10-K filed Mar 16, 2007.
Human Resource Outsourcing Industry
 
The Company believes that small and mid-sized businesses are the primary drivers of economic growth and the chief source of job growth. Dun & Bradstreet estimates that during 2006, 46% of the U.S. workforce was comprised of these companies.
 
These businesses are also potential HR outsourcing customers since many desire to outsource non-core business functions, reduce regulatory compliance risk, rationalize the number of service providers that they use and reduce costs by integrating HR systems and processes. According to Dun & Bradstreet, during 2006:
 
  •  there were approximately 61.3 million employees working for companies with between 10 and 499 employees, which is defined as the small and emerging market segment; and
 
  •  there were approximately 25.6 million employees working for companies with between 500 and 1,999 employees, which is defined as the mid-market segment.
 
The Company believes that the small and emerging market segment of the HR outsourcing market is particularly attractive because:
 
  •  this segment is large and has a low penetration rate of outsourced comprehensive HR services;
 
  •  small and mid-sized businesses typically have fewer in-house resources than larger businesses and, as a result, are generally more dependent on their outsourced service providers;
 
  •  businesses of this size select service providers primarily based upon the quality of service, ease of use, and responsiveness to clients’ needs;
 
  •  businesses of this size generally do not require customized solutions, enabling service providers to obtain significant scale advantages if they operate on an integrated technology platform; and


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Table of Contents

 
  •  this segment is characterized by a relatively short sales cycle and lower client acquisition cost as compared to the large business market.
 
The Company also believes that the mid-market segment is currently underserved and shares some of the attributes above that make small and emerging market companies an attractive market.
 
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