As a business owner in Tampa, FL, you are required by law to provide workers’ compensation insurance to your employees. This insurance covers medical expenses, lost wages, and other related costs in the event that an employee is injured or becomes ill on the job. While workers’ compensation is a necessary expense, it can also be costly for businesses, particularly those with a high risk of workplace injuries. Fortunately, there is a solution that can help businesses save money on workers’ compensation: employee leasing.

What is Employee Leasing?

Employee leasing, also known as a professional employer organization (PEO), is a business arrangement in which a company hires another company to handle certain human resources tasks, such as payroll, benefits administration, and workers’ compensation insurance. In this arrangement, the leased employees work for the leasing company, but they perform their duties at the client company’s worksite. The client company retains control over the day-to-day operations of the employees, while the leasing company takes care of the administrative tasks.

Employer Solutions is a local PEO consultancy in Tampa, FL that helps businesses connect with the best PEO option for their specific business needs. Their experienced team of professionals can help guide businesses through the complex process of selecting and implementing a PEO solution.

How Can Employer Solutions Save You Money on Workers’ Compensation?

There are several ways that Employer Solutions can help businesses save money on workers’ compensation:

1. Group Purchasing Power

PEOs provide workers’ compensation insurance to their client companies, and because they have a large pool of employees, they are able to negotiate better rates with insurance carriers. This means that the cost of workers’ compensation insurance is typically lower for businesses that use employee leasing services.

Employer Solutions has strong relationships with many of the top PEO providers in the industry, which allows them to negotiate the best rates and terms for their clients. By leveraging their group purchasing power, Employer Solutions can help businesses in the Tampa area save money on workers’ compensation insurance premiums. With their knowledge of the industry and the latest trends, they can help businesses make informed decisions about which PEO provider to choose.

2. Risk Management

PEOs also provide risk management services to their client companies. This includes safety training, workplace inspections, and claims management. By working with a PEO, businesses can reduce the likelihood of workplace injuries and minimize the impact of any injuries that do occur. This can help businesses save money on workers’ compensation insurance premiums and claims costs.

Employer Solutions can help businesses in Tampa, FL find a PEO that provides the most comprehensive risk management services. By working with a PEO that has a strong focus on safety and risk management, businesses can reduce their risk of workplace injuries and save money on workers’ compensation insurance premiums and claims costs. Research has shown that PEO clients generally have lower workplace injury rates, making it a smart investment for any business.

3. Experience Rating

Workers’ compensation insurance premiums are based on an experience rating, which is a measure of a company’s claims history. If a company has a high number of claims, its experience rating will be higher, and its premiums will be more expensive. By using a PEO, businesses can benefit from the leasing company’s experience rating, which may be lower than their own. This can result in lower workers’ compensation insurance premiums.

Employer Solutions can help businesses in Tampa, FL select a PEO with a strong experience rating. By working with a PEO that has a lower experience rating, businesses can save money on workers’ compensation insurance premiums.

3. Administrative Savings

Finally, employee leasing can help businesses save money on administrative costs. By outsourcing human resources tasks such as payroll and benefits administration to a PEO, businesses can reduce their staffing needs and administrative overhead. This can result in significant cost savings. In fact, according to NAPEO, businesses that use a PEO save an average of $450 per employee per year on administrative costs.

Employer Solutions can help businesses in Tampa, FL find a PEO that provides comprehensive administrative services. By working with a PEO that can handle payroll, benefits administration, and other administrative tasks, businesses can save money on staffing and administrative overhead.

Real-World Data on Employee Leasing and Workers’ Compensation

The benefits of employee leasing for workers’ compensation are not just theoretical; there is real-world data to support the idea that businesses can save money by using a PEO. According to a study by NAPEO, businesses that use a PEO have:

  • 21% lower turnover 
  • 14% lower employee absenteeism
  • 50% less likely to go out of business

The average cost savings from using a PEO is $1,775 per year per employee, and the ROI of using a PEO is 27%. Businesses that use a PEO have 10 to 14% lower employee turnover than those that don’t, and 7 to 9% faster revenue growth than those that don’t. Additionally, businesses that use a PEO can offer better employee benefits, such as health insurance, retirement plans, wellness programs, etc., which can help them attract and retain talent.

Employer Solutions can help businesses in Tampa, FL understand the real-world benefits of employee leasing. With their experience and expertise, they can provide businesses with data and statistics on the benefits of using a PEO for workers’ compensation insurance.

Conclusion

In conclusion, employee leasing, or PEOs, provide a cost-effective solution to businesses for handling workers’ compensation insurance. Through group purchasing power, risk management services, experience rating, and administrative savings, businesses can save a significant amount of money on workers’ compensation insurance premiums and administrative costs. Real-world data and studies confirm that businesses that use PEOs are less likely to experience workplace injuries, employee absenteeism, and turnover, and are more likely to succeed in their industry.

If you’re a business owner in Tampa, FL, interested in learning more about how Employer Solutions can help your business save money on workers’ compensation insurance, contact them today to schedule a consultation. Their team of professionals can help you understand the benefits of employee leasing and connect you with the best PEO option for your specific business needs.