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PEO Creates Job Security

By editor | November 14, 2008

One can’t help but wonder where they’ll end up within a year, or even a month, from now. With a recession around every corner and companies constantly trying to go lean and cut back on “non-profit” areas, the bulk of the working class is finding it hard to hold a job and harder to hold any sense of loyalty to a company. In many cases, positions that one would think are safe from the layoff line of fire, such as payroll services and accounting, are in actuality the first to be let go. Since companies don’t make money directly from these departments, they feel that they are expendable and the positions can be merged into other departments. Sadly, this leaves the remaining employees feeling helpless, worried and planning for their next stage in employment, but the business makes everything better by throwing a potluck and giving a lovely speech about increasing productivity equals survival through these tough times.

There is a solution, but it’s outside the box and requires a new type of loyalty. For an individual who specializes in payroll or human resources, it may be worth looking into a PEO, professional employer organization, as this type of company has the same focus. A payroll outsourcing company manages the HR department for another company and handles all aspects of those employee’s payroll and HR functions. While this may allow the other business to completely remove its internal department, the PEO now needs people of quality who have experience working in the industry. If you happen to have knowledge of the E Verify system, know how to navigate PeopleSoft or understand the world of workers comp, then you have the skills necessary to land the perfect, non-disappearing, job of a lifetime.

What’s nice about this set up is that the payroll services company isn’t going to layoff its HR department because of a recession; in fact, since they sell the that HR department to other companies, there is no reason to ever reduce its size, unless the person is truly not doing their job properly. This creates a new sense of loyalty, not to a business where you’re merely a cog in the wheel, but to a payroll outsourcing company, where you’re as important as their sales department and less expendable then their upper management. Of course, you’re still required to show up to work on time and do a good job, but you were laid off from your last job due to downsizing and not because you really didn’t understand the world of payroll services, right.


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