WHILE THE RECESSION has had an oveiwhelmingly harmful effect on just about every business in New Jersey, its effect on professional employer organizations serving the Garden State has been complex. While their clients have been cutting costs and payments, other businesses are now looking to save money by contracting with PEOs, which provide outsourcing for human resources, payroll, health care and other areas.
SMALL BUSINESS REPORT The recession’s complex effect on PEOs said his firm has lost revenue from many of its existing clients, who have been shedding jobs during the recession and have asked for reductions in their rates. More companies look to outsource HR functions, but many clients cutting costs, payments to stay afloat However, the layoffs also bring about By ANDREW KITCHENMAN the Garden state has been complex. human resources, payroll, health care and additional work for peos, which provide wHIle THe reCessIoN has had an while their clients have been cutting other areas. peos serve as the employer for assistance to their clients while they perform overwhelmingly harmful effect on just about costs and payments, other businesses are client firm’s workers. necessary staffing reductions. every business in New Jersey, its effect on now looking to save money by contracting Thomas J. Cioffe, chief executive officer “we certainly couldn’t afford to reduce our professional employer organizations serving with peos, which provide outsourcing for of wayne-based Compensation Solutions, staff,” Cioffe said. However, the recession has also had a silver lining, he said. Firms looking for help with their human resources costs are looking for alternatives. “everyone is recognizing the value of outsourcing,” Cioffe said, adding that outsourcing has become as much a part of the business world as cell phones. more opportunities are on the horizon for peos, Cioffe said, with increasing state and federal government rules and regulations likely leading businesses to look outside for help. “we’re here to stay,” Cioffe said. When it counts. Janis B. Sweeney, principal of National Employee Management Resources, of marlton, “Everyone is recognizing the value of outsourcing.” Thomas J. Cioffe, chief executive officer, Compensation Solutions said the need to reduce costs during a recession is both good and bad news for peos. sweeney estimates her business has lost 20 percent of its revenue from existing clients due to their staff cuts. “By the same token, this has been the best year ever for taking in clients” as businesses For a balanced financi
Pages to are hidden for
"The recession's complex effect on PEOs"Please download to view full document