MIAMI 7/3/2012 6:28:22 PM
News / Business

Florida PEO companies

"a response to a genuine need"

The growth of professional employer organizations in Florida did not happen unnaturally. It wasn’t a fad forced on an unwilling business community through the wonder of modern marketing. The growth is organic. Florida PEO companies are a significant player in workplace management because they are meeting the needs of small and large business people.



According to the Florida Association of Professional Employer Organizations, the organizations employ 900,000 Florida residents who are affiliated with some 60,000 businesses responsible for payrolls totaling $25 billion. By every yardstick, this describes a workplace structure that is a major administrative influence on Florida business life.


Somewhere between 30 and 40 PEOs operate across The Sunshine State, an industry that is in its third decade of existence. The numbers of organizations fluctuate, as they do in any early period of a new industry, but they continue to proliferate, a sure sign that the businessplace functions they are providing are fundamental. The needs are genuine and being genuinely met.


What are some of the needs? Florida PEO companies are a way for businesses to offload some administrative hassles that are vital and necessary but not directly related to production. One such function is workers comp insurance, the vehicle for resolving workplace accident and grievance incidents. It is important to workers and management, but is a headache for all.


PEO workers comp specialists take on such issues, freeing up CEOs and their HR people to push ahead with product or service development and delivery. In the same way, PEOs assume responsibility for employee services in other areas, including payroll, unemployment claims, HR standards and compliance issues, and health care regulation compliance.


Florida PEO companies can wring coherence from frustration in these and other employee management matters. That they can do so is evident in PEO’s growing popularity as a management tool. They were not foisted on the business community as an unneeded layer of management. They are an administrative edge in a competitive world searching for edges.