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Frequently Asked Questions
What do the terms "PEO" and "HRO" mean?
Professional Employer Organizations (PEOs) provide outsourced human resource solutions, employee benefits (including employee and workers' compensation insurance), and payroll and benefits administrative support to small and mid-sized businesses. The $43 billion PEO industry celebrated its 20th anniversary in 2004 and is one of the fastest growing industries in the Human Resource Outsourcing (HRO) sector.
How is a PEO different from temporary staffing and employee leasing?
Clients and EMS become co-employers of the client's employees. Co-employment involves all or a significant number of the client's existing worksite employees in a long-term, non-project-related, employment relationship. EMS brings services to the client, including the management of human resources, employee benefits, payroll and worker's compensation. In most cases, EMS assumes employer responsibility for employment tax, benefit plans and other human resource purposes. EMS provides access to health insurance, retirement savings plans, and other critical employee benefits for their worksite employees. If a relationship with EMS is terminated, the co-employees will cease to work for the EMS but will continue to work as employees for the client.
By comparison, a leasing or staffing service supplies new workers on a temporary or project-specific basis. These leased employees return to the staffing service for re-assignment after completion of their work with the client company. Some would define employee leasing as a supplemental, temporary employment arrangement where one or more workers are assigned to a customer for a fixed period of time, often for a specific project. This concept creates little long-term equity or investment between the worker and customer.
How does an HRO arrangement work?
Once a client company contracts with EMS, we will then co-employ the client's worksite employees. In the arrangement between EMS, a worksite employee and a client company, there exists a co-employment relationship in which both EMS and the client company have an employment relationship with the worker. EMS and the client company share and allocate responsibilities and liabilities. EMS assumes much of the responsibility and liability for the business of employment, such as risk management, human resource management, and payroll and employee tax compliance. The client company retains responsibility for and manages on-site management, product development and production, business operations, marketing, sales and service. EMS and the client will share certain responsibilities for employment law compliance. As a co-employer, EMS will often provide a complete human resource and benefit package for worksite employees.
Who can benefit from EMS?
Almost any business can find value in a relationship with EMS. Increasingly, larger businesses find value in an EMS relationship, because EMS offers robust web-based HR technologies and expertise in HR management. EMS can partner with companies that have between 10 and 500 or more employees and work in conjunction with their existing human resources department.
EMS clients include many different types of businesses ranging from accounting firms to high-tech companies and small manufacturers. Many different types of professionals, including doctors, retailers, mechanics, engineers and plumbers, also benefit from EMS services.
What makes EMS different from other HROs?
EMS is unique in the human resources outsourcing industry for several reasons. The company's history (and parent organization CBS) provides it with credibility and stability. EMS's comprehensive product and service offering and its customized and personal service delivery model ensure each client maximizes employee potential and firm profitability. Additionally, and perhaps most importantly, EMS is uniquely self-insured for workers' compensation in Ohio, allowing us to manage and control your costs more effectively. No other competitor in Ohio can make the same claim.
Will I lose control of my company by using EMS?
No. As our client, you retain ownership of the company and control over its operations. As co-employers, EMS and our clients contractually share or allocate employer responsibilities and liabilities. EMS will generally only assume responsibilities and liabilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits. You continue to have responsibility for worksite safety and compliance. EMS will be responsible for payroll and employment taxes, will maintain employee records and reserves a right (not the right) to hire and fire (a right that would only be exercised if the employment decision broke a law or otherwise jeopardized the business or workplace). Because EMS may also be responsible for workers' compensation, we also focus on improving safety and compliance.
How will my employees be affected by a relationship with EMS?
Most employees desire the environment of smaller employers; however, the realities of increasing healthcare costs, insurance protection for disability or death, and, most importantly, saving for retirement keep good employees with a larger employer. The "big company" human resource practices and benefit plans EMS provides for its clients help to attract and retain these employees.
Can I feel secure with EMS?
Yes. EMS is owned by one of the largest and most successful staffing firms in the U.S. CBS Personnel Holdings, Inc., founded in 1970, is a dominant player in the commercial staffing market. Headquartered in Cincinnati, Ohio, the company operates under three brand names - CBS Personnel, Venturi Staffing Partners, and Columbia Staffing and Healthcare. Thousands of customers are serviced each week from more than 135 offices located in sixteen states. Over 800 professionals staff these offices, fielding upwards of 20,000 temporary associates each week.
How much will EMS's services cost me?
EMS will conduct a detailed analysis of your current costs and prepare an assessment of EMS cost advantages. Depending on average wages, EMS administrative fees generally range between 2 - 4% of gross wages (the SBA estimates the cost of human resources at 6 - 25%). However, in most cases, the reduction in administration and insurance costs will offset all or most of the EMS administrative fee. And remember the value of the time you save by relying upon EMS.
Still have questions?
Contact us! We will be happy to provide any information you request.
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