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PEO - Human Resource/Payroll Outsourcing

A PEO (Professional Employer Organization)  is the solution Zayo uses to manage human resources. 

Zayo is growing really fast - from 7 employees a year ago to over 300 employees in 14 states today.   

We decided to stay focused on our business plan and not try to grow a competency in HR (the regulatory environment in HR varies from state to state, keeping up would require experts with knowledge of each state’s laws).  We wanted a single solution, with a vendor we could trust.  We needed a solution that  provided maximum automation, cutting edge Human Resources and payroll management, and fantastic employee benefits.

We are currently working with ADPTotalSource.  They provide the following services:

  • Payroll, time tracking (the time tracking is even available for contractors)
  • Workers’ compensation insurance
  • Human resources expertise
  • Employee benefits that are as good or better than Fortune 500 companies (health, dental, vision, HSA, Flex Spending, life, disability, legal, pet insurance, and more)
  • 401K administration
  • Training and development (free manager training and carreer development courses for <$50 each)
  • Recruiting
  • Performance management
  • Wage and hour assessment
  • Risk management and safety
  • Regulatory compliance
  • Fully automated, online Human Resource Management System
  • Automated reporting
  • Job description development
  • Employee assistance program
  • Legal support
  • State unemployment claim processing
  • Employee handbook
  • Personal discounts for employees
  • Employee Service Center staffed Monday - Friday from 8:00 am to 10:00 pm EST
  • Employee trouble ticket tracking
  • HIPAA compliance

According to ADP’s annual report, ADPTotalSource is the “largest PEO in the United States in terms of number of worksite employees paid.”  This is important, because we benefit from their buying power for benefits.  Rather than buying as a 300 person company we have the buying power of a 160,000 person company. 

Last week we took on the monumental task of de-integrating our payroll.  We had been on a regional model (one paygroup per aquisition) and needed to move to one paygroup per business unit (Zayo Bandwidth, Zayo Managed Services, and Onvoy Voice Services).  It sounded simple, but was a ton of work.  We complicated matters by wanting to pay everyone on the 15th and last day of the month.  This required changing the dates people are paid, and changing the way our time tracking system works.

ADP Totalsource led by Jeff Davis in Payroll and AJ Andersen in Benefits worked tirelessly with Bonnie Peterson (Zayo’s new Payroll Manager and only person employed by Zayo to work exclusively on HR activities).  They completed the migration in 1 week, and while there were a few problems, I am very pleased with the result.  When problems came up during the migration, ADP Totalsource made themselves available 24×7 to assist our employees.  They didn’t charge us extra for this service.  They didn’t complain.  They didn’t tell us that we were asking for the impossible.  Instead, they listened to our needs, then developed and quickly implemented a solution. 

That’s the type of service we’ve come to expect from ADPTotalsource.  Because we partnered with a company that has made HR and payroll their core competency, we benefit from their expertise and we can focuse on our business plan.

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21 Comments so far (Add 1 more)

  1. Doh! I was domain searching at namecheap.com and went to type in the
    domain name: http://businesstoolsblog.com/2008/06/peo-human-resource-management-outsourcing/ and guess who already acquired it?
    You did! haha j/k. I was about to purchase this domain name but noticed it was taken so
    I decided I’d come check it out. Good blog!

    1. no al Descuelgue on November 8th, 2012 at 4:13 am
  2. YES outsourcing of the payroll and HRM Admin is very important.

    2. Payroll outsourcing on July 19th, 2012 at 10:41 pm
  3. RK Information Technologies is specialized in outsourcing services providing Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) Services in the areas of Finance, Accounts and Transaction Processing.

    3. Manohar Reddy on October 21st, 2011 at 9:04 am
  4. Hi, I just found the best PEO match for me and I can’t say anything but they did a great, great job.
    peo brokerage

    4. shandsdiaz on October 20th, 2011 at 4:36 am
  5. We wanted a single solution, with a vendor we could trust. We needed a solution that provided maximum automation, cutting edge Human Resources and payroll management, and fantastic employee benefits.

    5. payroll india on June 27th, 2011 at 12:06 am
  6. Talent HR Solutions will take care of your human resources obstacles.

    6. payroll india on June 27th, 2011 at 12:04 am
  7. Employee leasing and/or PEO is not for everyone. It is a great model, don’t get me wrong, but oftentimes, we see the ASO or HRO model just as effective.

    7. Kristian Svindland on May 11th, 2011 at 10:18 am
  8. Until recently, our small company adopted new web-based ERP package with HRM(with excellent payroll component), CRM, PM, Accounting and Finance and other functions. You can take a look at http://www.workforcetrack.com .

    8. Craig Rogers on May 11th, 2011 at 7:02 am
  9. I read this post. It proved very useful for my studies on payroll, but i didn’t understand some points regarding HR and finance.

    9. Payroll India on March 20th, 2011 at 11:59 pm
  10. To make payroll more cost effective: If you analysis the expenses accrued throughout the payroll process you would be shocked at the amount of money it can cost. In addition to this there is all the paperwork to file safely and confidentially and the need to keep employee files up to date.

    10. sample pay stub on January 29th, 2011 at 9:05 am
  11. hi,
    i have read this post and really very good post !!and all these services are very valuable and beneficial ,ADPTotalSource is the largest PEO in united states……Payroll Outsourcing

    11. Payroll Outsourcing on January 4th, 2011 at 2:44 am
  12. We have been servicing PEO’s, Brokers and industry in general since 1974 and can do things that you can not do. We cover 50 states and are “A” rated. Our police has provided us the ability to offer coverage almost always in one day.
    Don’t loose a client, we are happy to work with you and have the highest commissions in the industre.

    12. Stan Simkins on July 11th, 2010 at 12:23 pm
  13. Fun. Add to your bookmarks. And how long it took to write articles?

    13. Marat on November 5th, 2008 at 10:44 pm
  14. Our clients find they are more productive, and more focused on strategic business goals, as they outsource non-profitable administrative functions to MidwestHR. MidwestHR’s expertise is in the management of human resource administration, payroll, taxes, employee benefit plans and worker’s compensation insurance. It is our only business.

    MidwestHR is a different kind of PEO. Our goal is to maximize our customers’ return on investment in people. We value our Clients. Check out our Employee Benefits.

    14. Employee Benefits on October 14th, 2008 at 12:50 pm
  15. 1)There is a huge reduction is cost: If taken a general view the direct cost of payroll can be easily be reduced if we outsource payroll services.
    2)The personal involvement and pain taken to manage payroll activities would be eliminated.
    3)Payroll processing is a time-consuming process.
    4)Outsourcing payroll can free up staff time to pursue more important value-added and revenue-generating activities.
    5)The headache involved in technological updations is also not required.
    6)By outsourcing payroll, a small business can take advantage of expertise that was previously available only to big companies.

    15. online payroll outso on September 29th, 2008 at 11:16 pm
  16. Call Tri-State PEO for services.

    877 736-0605

    16. Thomas on September 17th, 2008 at 5:41 pm
  17. I recently developed a site which lists PEO’s by state. Also, it is completely free for PEO’s to list their site and company information.


    17. PEO List on August 20th, 2008 at 1:29 pm
  18. Very informative post, Sandi!
    Employee leasing services can save employers valuable time and money. I also agree with the above comment about using PEO/ employee leasing brokers. They work with many different companies and can truly tailor an employee leasing arrangement to fit the needs of your business. I’m familiar with ADP and understand how they work and I’m glad you’re happy with them now. If anything changes, visit http://www.EmployeeLeasingQuotes.com and I’ll be glad to help your business. Good luck!

    18. Mike Burgelin on August 8th, 2008 at 6:21 am
  19. Hello,

    ADP TotalSource is a good company, expensive though. My research has found a great tool for prospects to find a PEO or a Broker.

    Go to http://www.peobizz.com and you can search for a PEO or Broker by City/State.



    19. Mike on July 28th, 2008 at 8:01 am
  20. I am a former sales person for ADP TotalSource and currently work for another PEO (a friendly competitor). ADTS is a great company to partner with, as you have described. I enjoy hearing success stories like yours for our industry.

    It amazes me sometimes that the market penetration for PEO’s is not higher. The growth potential for our industry is tremendous.

    I wish you the best in your continued relationship with ADPTS.

    20. Kevin on June 12th, 2008 at 7:37 pm
  21. As for PEO’s, I have yet to find one that is customer focused as Employers Resource of America. They go the extra-mile to ensure customer satisfaction.

    As a business owner, payroll and legal HR management is the last thing I want to focus on… They take care of it all for me.

    Matt Rissell

    21. Matt Rissell on June 12th, 2008 at 7:28 pm

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