The recession's complex effect on PEOs by ProQuest

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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
								
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