PEO Industry Continues Taking Bite Out of Small Business Injury Costs

ALEXANDRIA, Va., May 6 /PRNewswire-USNewswire/ -- At a time when the insurance industry is under scrutiny and workplace health and safety have proved to be a crucial investment to a small business's long-term success, three professional employer organizations have attained additional workers' compensation risk management credentials from the Certification Institute.

Statistics show that small businesses who have a strong health and safety culture that includes comprehensive health and safety procedures, on average reduce their injury and sickness costs by 20 percent. A well planned health and safety program is obtainable even for small businesses and doesn't have to be an administrative burden if outsourced to a PEO or professional employer organization.

PEOs arrange workers' compensation coverage, provide risk management, manage claims and provide back to work programs for several million workers as part of their service to small to mid-sized businesses. The PEO model also enables 300,000 small businesses to cost-effectively outsource the management of human resources, employee benefits and payroll. As a result, business owners are able to retain and attract employee talent and focus on their core competencies to grow their bottom line.

"It's a simple proposition, really," said Milan P. Yager, executive vice president for the National Association of Professional Employer Organizations. "Investing in health and safety can save you money. Failure to do so can erode your output, add considerably to costs, and tear a business owner away from revenue generating activities."

The PEO Workers' Compensation Risk Management Certification Program was launched in 2002 by the Certification Institute (CI), an independent nonprofit promoting industry professionalism. The certification program is an effort by the PEO industry to work cooperatively with workers' compensation carriers to ensure long term profitability and growth for all parties. Certification is based on the insurance industry's time-tested standards and procedures, which equal or exceed the requirements of any state or federal agency.

According to the National Federation of Independent Business, workers' compensation costs ranks as the 10th most important problem for small business owners. The rising cost of healthcare directly affects the cost of workers' compensation insurance and will continue to be a burden for small firms. A business owner with a PEO relationship can benefit from economies of scale for both workers compensation insurance and health care benefits.

"Mounting costs of employee injuries and the expense and disruption of staff turnover is turning many small business owners to health and safety," added Yager. "The payback in health and safety programs comes in the form of improved productivity, fewer insurance and worker's comp claims, less absenteeism, decrease in accidents, reduced staff turnover, higher employee morale, and leads to a better business reputation and customer loyalty."

The three PEOs that earned the Workers' Compensation Risk Management Certificate include Selective HR Solutions, Inc., based in Florida, Illinois' Pantheos, LLC, and Staff-Line, Inc. of Poughkeepsie, NY.


As the recognized Voice of the PEO Industry,(R) NAPEO represents nearly 400 professional employer organizations (PEOs). The PEO industry has matured to $68 billion with double digit growth annually. As NAPEO enters its 25 year, the potential market remains promising with high client retention rates, a projected 20 percent increase in revenues for 2009 and the current untapped market now serving 2 to 3 million workers. PEOs allow clients to "reduce costs and free up time to devote to revenue generating activities, improvements that can be instrumental to gaining competitive advantage," according to research by the Society of Human Resource Management Foundation. To learn more about how PEOs contribute to small businesses' success, visit the NAPEO Web site at

SOURCE National Association of Professional Employer Organizations (NAPEO)

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