Administaff Inc
June 4, 2011 – 4:07 pm
Administaff, Inc. is a professional employer organization (PEO) firm which is involved in providing various Personnel Management Systems (PMS). The Company’s range of services includes payroll and benefits administration, insurance program for workers’ compensation and health, personnel data management, employer liability management, recruitment and selection, performance management of employees and employee training. Administaff also offers some development service.
The Company started its operation in April 1986 and caters to more than 5,700 clients with help of 100,000 worksite employees and 1,700 corporate employees. Administaff is one of the prominent companies listed with New York Stock Exchange under ticker ASF. The Company completed its initial public offering in January 1997 and is only professional employer organization to qualify for listing on the NYSE.
Administaff’s total revenue increased 18.8% to $1.4 billion in 2006 from $1.2 billion in 2005. The Company’s net income increased 55.1% to reach $46.5 million in 2006 from $30.0 million in 2005.
Out of almost 2000 PEO firms, the Company is one of 20 PEOs currently accredited by the Employer Services Assurance Corporation (ESAC). Administaff is an active member of the National Association of Professional Employer Organizations (NAPEO). The Company was named to Fortune magazine’s list of America’s Most Admired Companies for the fifth consecutive year, ranking among the top four businesses in the Payroll Services category in year 2003.
The Company caters to small and medium-sized enterprises in some selected markets by offering complete solution for their human resource requirements and administrative services.
The Company enters into a co-employment relationship with clients, its employees and business owner in order to provide PMS services. With such arrangements, Administaff shares employee responsibilities along with the client. In addition, Administaff provides the client company and their employees with value-added services and benefits that are typically not available to employees of business units. This helps client in maintaining valuable employees and also is free from burden of managing employee expectations. Hence, the Company helps owner to structure and strategically utilize resources more productively.
Administaff offers a gamut of services and utilizes IT software and technologies to help their clients in employee management. The Company has also targeted its approach to include certain range of companies. Hence to complement its services and offering Administaff follows two approaches:
• eBusiness: The Company’s eBusiness strategy includes Employee Service Center which is basically an interactive eService platform to assist client and its employees with information and resources. The Employee Service Center also has MarketPlace, an eCommerce portal that offers services and value added products like mobile services, bill payment and easy ticketing from best and renowned service providers like Cingular, Continental Airlines, Dell, FTD.com, Office Depot, Ticketmaster and Wells Fargo.
• Target Market: The Company defines target market as growing companies with 10 – 2000 employees. Administaff believes that there is low risk involved as employees are with relatively low salary levels and unemployment risks. In such case target companies are mostly white collared or skilled blue collared. The industry includes technology, engineering, real estate, finance & accounting, medical, banking, legal and insurance.
Following are list of few basic service that company offers:
• Employment Administration
• Government Compliance
• Recruiting and Selection
• Performance Management
• Benefits Management
• Employer Liability Management
• Training and Development
• Business Services
All above basic services can be clubbed into four major service segments:
Administrative Relief: The Company helps clients in managing their administration related services and hence free up client’s time to focus on core activities. It can be anything ranging from government regulations, various paperwork and employer-related obligations. This is done by transfer or share employer liabilities and cover grounds which are left out. Administrative Relief includes Employment Administration, Government Compliance and Employer Liability Management.
Big Company Benefits: The Company provides employees of its client with value added benefits package which in turn helps in easy recruitment and retention. The Client is benefited by quality employee benefits and hence can have competitive advantage in market place. Services include in-sourced retirement services, retirement savings plan for client’s employees with no set-up cost and marginal participation fees. Under Big Company Benefits Administaff offers Benefits Management, Retirement Services and Business Services.
Reduced Liabilities: The Company helps clients by sharing the responsibility of managing employer and employee disputes. This helps client to focus on business and reduce risks associated with employee and employer litigation. Employer obligations are also managed effectively. Under Reduced Liabilities, the Company offers Government Compliance and Employer Liability Management.
Improve Productivity: The Company provides human resource (HR) consulting services by providing guidance on HR best practices and help implement them for deriving benefits. This helps in increasing client’s productivity and profitability. Administaff provides comprehensive solution through strategic HR services which includes Recruiting and Selection, Performance Management, and Training and Development.