What is a PEO?
Professional employer organizations (PEOs) enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation. PEO clients focus on their core competencies to maintain and grow their bottom line.
Who uses a Professional Employer Organization (PEO)?
Any business can find value in a PEO relationship. An average client of a NAPEO (National Association of Professional Employer Organizations) member company is a business with 19 worksite employees. Increasingly, larger businesses also are finding value in a PEO arrangement, because PEOs offer robust Web-based HR technologies and expertise in HR management. PEOs can partner with companies that have 500 or more employees and work in conjunction with their existing human resources departments.
Landrum 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 PEO services.
How long will it take you to find an employee for my company?
In order to respond quickly to your requests, we keep a pool of qualified candidates on file. Landrum's applicant tracking system enables us to conduct searches for specific job requirements in a matter of seconds. However, our response time depends largely on the availability of individuals with the required skills.
How does a PEO arrangement work?
Once a client company contracts with Landrum, Landrum will then co-employ the client's worksite employees. In the arrangement among Landrum, a worksite employee and a client company, there exists a co-employment relationship in which both Landrum and the client company have an employment relationship with the worker. Landrum and the client company allocate responsibilities.
Landrum assumes much of the responsibility for the business of employment, such as risk management, human resource management, payroll and employee tax compliance. The client company retains responsibility for and manages product development and production, business operations, marketing, sales, and service. Landrum and the client company will share certain responsibilities for employment law compliance. As a co-employer, Landrum will provide a complete human resource and benefit package for worksite employees.
What is NAPEO?
Formed in 1984, the National Association of Professional Employer Organizations is the national trade association for the PEO industry. NAPEO is known both as NAPEO - The Voice of the PEO Industry® for government affairs and as The Source for PEO Education® due to the association's education and training programs. NAPEO promotes a Code of Ethics and a number of best practices to its member companies. NAPEO has nearly 400 PEO members operating in all 50 states, representing approximately 91 percent of the revenues of the $68 billion industry.
Are PEOs recognized as employers at the state and federal levels?
Yes. PEOs operate in all 50 states. Many states provide some form of specific licensing, registration, or regulation for PEOs. These states statutorily recognize PEOs as the employer or co-employer of worksite employees for many purposes, including workers' compensation and state unemployment insurance taxes. The IRS has accepted the right of a PEO to withhold and remit federal income and unemployment taxes for worksite employees. The IRS has promulgated specific guidance confirming the authority of PEOs to provide retirement benefits to workers.
Why would a business use a PEO?
Business owners want to focus their time and energy on the "business of their business" and not on the "business of employment." As businesses grow, most owners do not have the necessary human resource training, payroll and accounting skills, knowledge of regulatory compliance, or background in risk management, insurance, and employee benefit programs that meet the demands of being an employer. PEOs give small-group markets access to many benefits and employment amenities to which they would not otherwise have access.
Do the business owners lose control of their businesses?
No. The client retains ownership of the company and control over its operations. As co-employers, Landrum and client will contractually share or allocate employer responsibilities. Landrum will assume responsibilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits. The client will continue to have responsibility for worksite safety and compliance. Landrum will be responsible for payroll and employment taxes, will maintain employee records. Because Landrum is responsible for workers' compensation, we also focus on and improve safety and compliance. In general terms, Landrum will focus on employment-related issues, and the client will be responsible for the actual business operations.
What is the difference between employee leasing and a PEO arrangement?
A PEO or co-employment arrangement involves all or a significant number of the client's existing worksite employees in a long-term, non-project related, employment relationship. Landrum brings services to the client, including the management of human resources, employee benefits, payroll and worker's compensation. Landrum assumes employer responsibility for employment tax, benefit plans and provides human resources advice and recommendations at the request of the client. Through the use of a PEO relationship, client companies make a long-term investment in their workers, because in most cases, the PEO provides access to health insurance, retirement savings plans, and other critical employee benefits for their worksite employees. If a PEO relationship is terminated, the co-employees will cease to work for Landrum but will continue as employees of the client.
Some older statutes governing PEOs still use the leasing terminology.
How many Americans are employed in a co-employment PEO arrangement?
It is estimated that 2-3 million Americans are currently co-employed in a PEO arrangement. The average PEO has grown more than 20 percent per year for each of the last six years, according to a survey of NAPEO members. About 700 PEOs that offer a wide array of employment services and benefits are operating today in 50 states. The PEO industry generates approximately $68 billion in gross revenues annually. PEOs have an 88 percent client retention rate due to strong client satisfaction. NAPEO member companies are estimated to account for more than 91 percent of the industry's gross revenues.
How do PEOs help their clients control costs and grow their bottom line?
The PEO's economy of scale enables each client company to lower employment costs and increase the business's bottom line. The client can maintain a simple in-house HR infrastructure or none at all by relying on Landrum. The client also can reduce hiring overhead. The professionals at Landrum can provide critical assistance with employer compliance, which helps protect the client against liability. In many cases, the client can pay a small up-front cost for a significant technology and service infrastructure or platform provided by Landrum. In addition, Landrum provides time savings by handling routine and redundant tasks for its clients. This enables the business owner to focus on the company's core competency and grow its bottom line.
How do employees benefit from a PEO arrangement?
Employees seek financial security, quality health insurance, a safe working environment and opportunities for retirement savings. When a company works with Landrum, job security is improved as Landrum implements efficiencies to lower employment costs. Job satisfaction and productivity increase when employees are provided with professional human resource services, training, employee manuals, safety services and improved communications. And in many cases, a co-employment relationship provides employees with an expanded employee benefits package, to include a 401(k), life insurance, disability insurance, discount plans, a flexible spending plan and more.
Do workers receive comprehensive benefits?
Frequently, a PEO arrangement is the only opportunity for a worker of many small businesses to receive Fortune 500 quality employee benefits like health insurance, dental and vision care, life insurance, retirement saving plans, job counseling, adoption assistance, and educational benefits. Without the PEO relationship, a small business can neither afford nor manage these benefits.
Who is responsible for the employees' wages and employment taxes?
Landrum assumes responsibility for payment of wages and compliance with the rules and regulations governing the reporting and payment of federal and state taxes on wages paid to its employees. Landrum has long established their role as reporting income and handling withholding, FICA and FUTA. In 2002, the IRS issued guidance confirming the ability of PEOs to offer qualified retirement benefits.
Who is responsible for state unemployment taxes?
As the employer for employment tax and employee benefits, Landrum assumes responsibility for payment of state unemployment taxes, and most states recognize the PEO as the responsible entity. In those states that require or allow the PEO to report unemployment taxes under its clients' account numbers, the PEO can still manage this responsibility.
Who is responsible for workers' compensation?
Many states recognize the PEO as the employer of worksite employees for purposes of providing workers' compensation coverage.
Does a PEO arrangement impact a collective bargaining agreement?
No. PEOs work equally well in union and non-union worksites. The National Labor Relations Board (NLRB) recognizes that in co-employment relationships, worksite employees may be appropriately included in the client employer's collective bargaining unit. Where a collective bargaining agreement exists, PEOs fully abide by the agreement's terms.
Do PEOs need to be licensed to provide insurance benefits to their workers?
Like other employers, a PEO may sponsor employee benefit plans for its worksite employees. Such benefits may be mandated by law, such as workers' compensation and unemployment benefits. Or they may be voluntary benefits that will help attract and retain quality employees, such as health, life, dental and disability insurance. PEOs as employers may sponsor or acquire programs for their employees. As such, PEOs are consumers of insurance and procure these benefits from licensed insurance agents and authorized insurers.
Can I interview candidates before they start?
Yes. We will send you resumes of those candidates that have been thoroughly screened and most closely match what you're looking for. You let us know which candidates you'd like to meet with and we'll coordinate the interviews.
What does the bill rate cover?
Our bill rate covers the employee's pay, all payments for Social Security, State and Federal Unemployment tax and claims, Workers' Compensation and Liability insurances. It also covers recruiting costs, drug screens, criminal background checks, work reference checks, motor vehicle records and credit checks where applicable, payroll processing, and payroll tax deposits. Your bill rate also includes your Landrum team of HR professionals available to you for consultations and employment guidance.
What if I find someone on my own and want to payroll them through Landrum until I decide if I want to hire them?
This option is referred to as our Payroll Advantage. Your company receives a discounted bill rate because you find the employee. These employees must still complete our thorough screening and evaluation process. There is not a liquidation period for these individuals. You may hire them onto your payroll anytime. We welcome our Payroll Advantage customers!
What if the employee you send us doesn't work out?
We are proud of our reputation for quality and customer service. If you are not 100% satisfied, please contact your Landrum representative immediately and a replacement will be arranged. If you are utilizing the Landrum Temp-to-Hire Program, the liquidation period will be prorated for the replacement.
Can I work the employee overtime?
Yes! You will be billed at time and a half for all hours over 40 in a given week.
How do I open an account or request an employee online?
Click here to fill out our Request an Employee form. Or, for more information call our Pensacola office at 850-476-5100 or our Fort Walton Beach office at 850-244-0026.
What if I want to hire the person you send?
You may hire any Landrum employee using our Temp-to-Hire or Direct Hire options. Please contact your Landrum representative at (850) 476-5100 to initiate this process.
Can the employee pay the fee?
No. We never charge a fee to our applicants.
Tell me about your contract. What do I have to sign?
You will find our "Customer Agreement" on every Landrum timesheet or on the electronic timesheet approval page. When signing this "Customer Agreement," you are (1) certifying as correct the number of hours worked by our Landrum employee, (2) agreeing to pay for the hours worked by our Landrum employee, (3) agreeing that you may hire our Landrum employee only after they have completed the required 12 week (480 hour) liquidation period or a period of six months has transpired since our Landrum employee completed their assignment with your company, and (4) agreeing to adhere to the Conditions of Service, including payment terms, noted on the reverse side of the Landrum timesheet and invoice.
How big is the industry?
The staffing industry generated more than $87 billion in revenue in 2008: $71 billion from temporary and contract staffing and $16 billion in search permanent placement services.
What accounts for the growth of the industry?
America's work force is changing as more and more people are looking for the flexibility that temporary work provides. Companies are tapping into the flexible labor market to keep fully staffed during busy times.
How long do people hold temporary jobs?
While specific jobs may last from a few hours to several years, the best estimates for the average tenure of temporary and contract employees range from three to four months.
What types of assignments do staffing companies offer?
Jobs range from a general labor worker to salaried professionals and are available in virtually all occupations.
What are the trends in the kinds of jobs being assigned?
The fastest growth is occurring in professional and technical occupations.
How many staffing companies are there in the U.S.?
There are about 6,000 firms that have been in business a year or more. Those companies operate approximately 20,000 offices. American Staffing Association member companies operate more than 15,000 offices across the nation and account for more than 85% of U.S. industry sales.
What kind of pay and benefits do temporary and contract employees receive?
To attract the most qualified employees, staffing services offer highly competitive wages and benefits. The average temporary or contract employee earns more than $12 per hour. Some earn more than their permanent counterparts. Most staffing companies offer some type of health insurance as well as vacation and holiday pay. Virtually any temporary or contract employee who wants benefits can find a staffing firm that offers them.
What kinds of services do staffing companies provide?
Staffing companies offer a wide range of employment related services and solutions, including temporary and contract staffing, recruiting and placement, outsourcing and outplacement, training, and human resource consulting.
Sources: American Staffing Association, U.S. Bureau of labor Statistics, Staffing Industry Analysts, the Omnicomp Group
How do I get paid?
Landrum employees can submit their hours via our electronic timesheet submittal process, also known as PeopleNet, or by completing a paper timesheet.
At the end of your work day each Friday, visit the Landrum website. On the home page, click on the "Sign In" button located at the top right corner of the screen. This will take you to a page where you can access the PeopleNet link - scroll down until you see the PeopleNet login. To login, you must first create an account. Please visit www.mypeoplenet.com/logon.
The timesheet deadline for entering online hours is Saturday, 11:59 p.m. Hours MUST be entered by 11:59 p.m. on the Saturday following the work week to guarantee that your supervisor will receive an e-mail to approve them. Hours MUST be entered by 11:59 p.m. on the Saturday ending the work week to guarantee that your supervisor will receive an email to approve them.
Your funds will be processed and either direct deposited to a checking or savings account, or EZPay paycard.
If you have any questions on entering time, please call your Landrum supervisor at 850-476-5100 (Pensacola) or 850-244-0026 (Fort Walton Beach).
A paper timesheet is still acceptable. Please remember to:
- Print your full name and social security number on your timesheet.
- Enter our customer's company name and the name of the person you report to for the assignment.
- For each day worked, record the date, time started, time finished, time taken for lunch, and actual hours worked.
- Sign your timesheet and enter the correct week ending date (Saturday).
- Have our customer sign your timesheet and indicate whether your assignment is continuing or has been completed.
- Leave the last copy with our customer and return the balance of the set to the Landrum office.
- Timesheet deadline is 10:00 am every Monday morning (including holiday weeks). The Landrum Pensacola office has a convenient drop slot at our front door for evening or weekend drops. In our Fort Walton Beach office timesheets must be dropped off during business hours (M - F, 7:30 am - 4:30 pm)
- Extra timesheets can be downloaded and printed here.
How often will I be paid?
Our pay days can vary depending on your assignment and location. Your Landrum representative will let you know when you can expect to be paid. If you selected to utilize the EZPay paycard, you will need to pick up your paycard from the Landrum office on or after your first scheduled pay day. Once you have the card in your possession, your funds will be loaded to the card each week.
How soon can you find me a job?
We try to place candidates as soon as possible. However, we cannot guarantee employment. Please use Landrum as one of your sources during your job search. There are numerous resources in the community that you will want to research also.
Do you charge for the drug screening?
There is no charge. The drug screen is a part of our application process.
Is there a placement fee?
No, all charges are paid by Landrum clients.
What are Landrum's business hours?
Our Pensacola office is open from 8:00 am to 5:00 pm, Monday, Tuesday, Thursday and Friday, and from 7:30 am to 5:00 pm on Wednesday.
Our Fort Walton Beach office is open from 7:30 am to 4:30 pm, Monday - Friday.
How can I brush up on my computer skills?
Computer tutorials are offered through Landrum to our employees free of charge. You do not need an appointment, just come in anytime between 1pm and 4pm.
Do I need a resumé ?
We utilize your resumé as a placement tool for the client. We ask that you submit your resumé electronically. Be sure to include a phone number where we can contact you. You can send your resumé to LSS@LandrumStaffing.com. Please be sure your resumé is a Microsoft Word document.
Can I create a new resumé or update an old one in your office?
We do not have a resumé program available at the Landrum office. A resume service is available at CareerSource Escarosa in Pensacola and CareerSource Okaloosa Walton in Fort Walton Beach/Destin.
What are my staffing options?
• Temporary Assignments ranging from a few days to a few weeks or even longer depending on our clients’ staffing needs.
• Temp-to-Hire Assignments that provide the opportunity to be hired by the client company. Candidates are employed by Landrum Staffing for a certain timeframe until an offer of employment has been made by the client company.
• Direct Placement Landrum assists the client company with recruiting and screening candidates for direct placement for their staffing needs.
Does Landrum have any locations outside of Pensacola?
Yes. We also have an office in Fort Walton Beach that services Okaloosa and Walton Counties. We are also members of a network of independently owned staffing services called TempNet and can refer you to other member companies throughout the United States.
What are the pay ranges for your jobs?
There are many variables in determining pay rates including skill requirements, education, experience, etc. Most job postings on our website will have pay ranges listed.
How do I know my HR policies are in compliance with the new employment law revisions?
There has never been another time in modern day history when so many employment law changes have been made or proposed. Just since January, 2009, both FMLA (Family and Medical Leave Act) and ADA (American's with Disabilities Act) have gone through major amendments. Landrum's Human Resources Assessment will help determine where you stand in this ever changing world of employment law, and can help give you a peace of mind about your employment practices.
Is my employee handbook out of date?
Laws can change from day to day. Federal and state employment law is certainly not immune to change, as we have seen in the many revisions and proposed amendments made to major employment laws in 2009. Your employee handbook should reflect those changes so that it can serve as a communication tool for your employees. With our Employee Handbook review, Landrum's experts can help.
Are my HR forms getting too old?
As with employee handbooks, any employment forms you use should reflect current rules and regulations. For example, you wouldn't want to use a form that asks an applicant to indicate marital status or whether he/she has been arrested, which could inadvertently place your company in a vulnerable position for a discrimination claim. With our Human Resources Assessment, Landrum will make sure your employment forms avoid asking questions that could get you in trouble, as well as to provide you with the pertinent data you need.
What is an I-9 form?
Form I-9 is a form required by the U.S. government that shows your employees are legally eligible to work in the United States. Many government entities have authority to review I-9's, and fees and sanctions can add up quickly if there are any mistakes or omissions. Through our Human Resources Assessment, Landrum can show you the right way to complete the I-9 on each employee, so that you can avoid costly fees.
What if one of my employees complains they weren't paid properly?
Wage and hour laws require employees to be paid according to the Fair Labor Standards Act and state law. There are many nuances of this law which often makes it difficult to know how to appropriately pay an employee. For example, if an employee works overtime and earns bonuses or commissions in addition to their regular pay, there are steps that must be taken to ensure overtime pay is calculated correctly. With ongoing HR assistance, Landrum On-Call can also be available if and when a question arises regarding wages.
What if I have some employee relations issues?
There are many types of employee relations issues ranging from basic employee counseling, coaching, conflict resolution or resolving complaints. The range of potential issues is endless. Through Landrum On-Call, expert advice is just a phone call away! We'll be there to walk with you through those sticky employment issues.
What if I only need an HR Manager every once in a while?
Landrum-On Call is the answer to your needs! When you need us, we'll be there to help. Your business will have a Landrum HR expert dedicated to knowing your business so that when you call, we'll be familiar with your operations and can respond to your specific needs.
Can Landrum be available when I have an employee issue?
Yes! There are many ways in which Landrum can serve your specific needs, even if it's just the peace of mind to know you have an expert ear to talk to when needed. Landrum-On Call is our way of meeting your needs, when you need us!
What do I do if I know there's a problem concerning my employees, but I don't know what it is?
Unlike morale issues and high turnover, sometimes you can tell something is "off" with your employees but you have no way to define the problem. Our focus groups and surveys are able to pinpoint real issues that may not be uncovered any other way. We'll convey your employees' issues to you, and provide guidance on how to address those issues.
What do I do if I think my company has a morale problem?
There may have been a specific event that sparked a morale issue, or things may just seem "not right"; therefore, you suspect there may be low morale among your employees. Landrum's focus groups and surveys are proven to help determine the exact nature of the issue(s), and take the guess-work out of the equation.
Why do I have such a hard time finding and keeping good employees?
Do you have high turnover but don't know why? Are you losing your top people? Landrum's focus groups and surveys can show you why this is happening. Landrum's process not only shows you the issue(s), but we provide insight and guidance on action steps you can take to turn around your turnover problem.
Do my supervisors need training?
Your supervisors represent you in everything they do. In other words, if a supervisor doesn't handle a situation appropriately, it is you and your company that doesn't handle the situation appropriately. Therefore, supervisors should be periodically trained in the many different areas in which their decisions and actions (or inactions) can affect your business. Landrum's customized approach is different than other "cookie cutter" training programs, and we design a meaningful and effective plan to meet your specific training needs.
Is it important for supervisors/managers to do things the same way?
Treating your employees consistently, appropriately and with dignity and respect are some of the best ways to avoid a claim of discrimination, harassment, hostile work environment, or even wrongful termination. If one supervisor treats employees differently than another supervisor, it could potentially place your company in a position to receive such a complaint. Landrum has an effective training program than can help you and your supervisors protect your company.
Why do I need job descriptions?
Job descriptions, job performance and pay go hand-in-hand. Employees are paid based on how well they perform a job. How well someone performs a job can't be determined without knowing the job responsibilities. So ultimately, a job description is the heartbeat of a job position. Accurate and thorough job descriptions serve a vital role in determining whether a position qualifies to be exempt from overtime, and also provides important information to employees' physicians in order for them to determine if an employee can perform the essential functions of job.
How can I be sure my employees are classified properly?
Many employers believe that by simply paying an employee a salary instead of an hourly wage, it does away with the obligation to pay overtime. It is not the job title or solely the method of payment that determines if a job position meets the Department of Labor requirements to be exempt from overtime. A person may have "Manager" or "Supervisor" in their job title, but if certain criteria aren't met the employee may be entitled to overtime even if they are paid a salary. Accurate and thorough job descriptions play a vital role in determining whether a position qualifies to be exempt from overtime. Through Landrum's Human Resources Assessment, a certified HR expert can also review (or create) your job descriptions and provide valuable feedback regarding the appropriate classification according to the Fair Labor Standards Act.
How do I ensure that my employees avoid work-related injuries?
OSHA reports that 85% of all work place injuries are the result of unsafe acts…the remaining 15% are due to unsafe conditions. Consequently, the focus has to be on employee behavior. On-going safety awareness is crucial, and each employee should be held accountable for their actions. To reduce or prevent "unsafe acts" incidents, trained and skilled supervisors are the most effective method to convey safety awareness to the work force. With our comprehensive safety assessment, Landrum's Risk Management experts can provide valuable (and sometimes required) training to your supervisors and employees, as well as guidance and assistance in developing safety campaigns, rewards and recognition programs, and general safety awareness.
How do I know if my benefits stack up to other employers?
The marketplace is ever-changing, and the benefits employers provide to their employees can be a determining factor in recruiting and retaining quality employees. Landrum's Benefits Review compares your company's offerings to the current marketplace, and provides valuable feedback on "best practices" standards as well as trends that may be evolving. Our review also covers compliance guidelines with benefits-related employment laws, including retirement plan laws and the recent American Recovery and Reinvestment Act (ARRA), which has required major COBRA (Consolidated Omnibus Reconciliation Act) compliance changes since the passing of President Obama's stimulus package in 2009.
What do I do if an employee says they are being harassed at work?
If an employee complains of harassment, there is a legal requirement for employers to thoroughly and promptly investigate to determine if illegal harassment is taking place, and to take appropriate action. The result of the complaint investigation is what determines what appropriate action, if any, should be taken. Landrum's certified HR experts are experienced in conducting fair investigations that get to the truth. We will determine the facts from the information provided to us, give a report of the findings, and if desired we will provide guidance and advice on appropriate actions to take.
How do I report a work related injury?
The form below lists the procedures you must follow when reporting on-the-job injuries.