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Contents
Hello and welcome to the Fall edition of The Alcott Advisor. This month we are taking a look back over
the first 20 years of the PEO industry. At 20 years old, we are a very young industry. However, fueled
by the outsourcing trend, along with the growing complexity of the human resources regulatory environment,
the PEO concept has gained traction. Read more about this below.
During the pre-sales process, prospective clients often ask to speak with a new client as well as one
that has been on our program for several years. They provide tellingly different perspectives about
the customer experience. To that end, we thought it would be a good idea to feature two such clients
in this month's "Client Spotlight."
There are also several new developments at Alcott and theses are covered in the "What's New at Alcott?"
and "Who's New at Alcott?" articles.
We wish you the very best during Q4 and, as always, if you have comments or suggestions please send them
to Al Anastasi at ata@alcottgroup.com
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THE PEO INDUSTRY 20 YEARS LATER
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The PEO Industry Celebrates Two Decades of Serving Businesses
Over the past two decades, the Professional Employer Organization (PEO) industry has undergone a major
metamorphosis. What was born out of the TEFRA tax legislation of the late 70s, which made staff leasing
a tax-advantaged option for businesses, has since evolved into an industry providing comprehensive Human
Resource and related value-added employee services. Today’s PEO serves as a true Human Resources partner
to its clients. These savvy businesses rely on their PEOs for everything from payroll, tax and benefits
administration to employment law and regulatory compliance, employee discipline and Workers Compensation
hearing representation to such valuable employee offerings as wellness programs, adoption assistance and
discounts for transportation, travel, entertainment and shopping.
On September 20-22nd, the National Association of Professional Employer Organizations (NAPEO) celebrated
its 20th anniversary in a gala annual conference. Its theme, “Achieving Market Leadership,” speaks volumes
about the industry’s emphasis on high quality services stemming from highly educated, motivated and
standards-driven PEOs. Speakers driving that mission included prominent authors Jason Jennings, a
renowned management consultant and author of Less is More and Oren Harari, author of The Leadership
Secrets of Colin Powell and Leapfrogging the Competition. Also on the program was Fortune 500 consultant
Towers Perrin’s who spoke on consumer-driven healthcare.
Click here to read more
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CLIENT SPOTLIGHT
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Since its inception in 1986, The Alcott Group’s client base has evolved to reflect the broader acceptance
and application of Professional Employer Organizations (PEO). Where the typical client was once a small manufacturer
or distributor, today our affiliated companies represent a wide diversity of organizations. They range in
size from small and middle-market firms to larger employers and reflect a cross-section of vertical markets,
manufacturers and distributors, high tech, medical entities, professional services and not-for-profits.
Following are the thoughts of two such clients – one of our longest standing clients, Norman Hecht Research,
a client of Alcott’s since 1989, and Softheon, Inc., a Business Process Software Solutions firm and one of
the region’s fastest-growing technology companies, which just began its HR outsourcing relationship with
Alcott in 2005.
According to Softheon’s Corporate Controller Dianne Meyers, CPA, “We were at a crossroads in terms of
how to best manage our human resource functions. As a 25-employee organization, we didn’t feel that our
size warranted a full-time HR Manager. Still, we wanted that level of expertise and resources for our
employees. After careful consideration, we determined that an HR outsourcing relationship would be most
effective. We interviewed a few firms and selected Alcott based on its comprehensive offerings,
customer-service orientation and the fast-response we received to all of our preliminary inquiries.”
Click here to read more
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WHAT'S NEW AT ALCOTT?
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When it comes to applying the latest technology to advance its PEO services, Alcott has remained on the
leading edge. Today, Alcott’s sophisticated, secure Web-based Information System gives both employers and
their employees online access to important information from payroll records and personnel information to
status of benefits and claims. This information, along with related forms, can be obtained from any
compatible computer, on a 24/7 basis.
In discussing Alcott’s decision to name Invision.com, a PEO client of Alcott’s, as its website developer,
Alcott Vice President Barry Shorten who directed The Company’s online application, explained “After making
a substantial investment in an advanced software program which would enable our clients and their employees
to check their benefit programs online, 24/7, we knew for the website to succeed it needed to have the right
navigation, functionality and design. We know that our confidence in Invision, a market leader in leading-edge
website and e-solutions is well-placed.”
Click here to read more
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WHO'S NEW AT ALCOTT?
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The Alcott Group announces the appointment of Dawn Davidson Drantch, Esq. as Director & Counsel, Employee
Relations. Ms. Drantch brings over 15 years of experience in employment law and employee/management training.
At Alcott, she will be working directly with The Company’s Human Resource professionals, guiding them in
various matters ranging from policy/procedural development and compliance with various employment laws.
In addition, she will be serving as a value-added resource to the organization’s over 350 affiliated
companies and their over 4,500 employees.
Directly prior to joining Alcott, Ms. Drantch served as an attorney with the law firm of Alan B. Pearl &
Associates, P.C. (Syosset, NY) where she represented clients in all aspects of employment and labor law
litigation and at arbitrations and grievances before state and federal administrative agencies. In addition,
she served as a Human Resources Consultant with Portnoy, Messinger, Pearl & Associates, Inc. (Syosset, NY).
Click here to read more
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ALCOTT IN THE NEWS
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The Alcott Group President Louis Basso was recently named one of “Five People to Watch in Human Resources”
by Long Island Business News (July 29-August 4, 2005), the Long Island region’s leading business weekly.
In its article, the newspaper noted that, “Louis Basso may be the biggest small businessman on Long Island,”
a reference to the fact that as a professional employer organization (PEO), Alcott now employs an estimated
4,000 people. Touted in the column was Mr. Basso’s leadership in growing Alcott from serving a client base
of 35 with 475 employees to now serving over 200 clients and their 4,000 employees. Also noted was Mr. Basso
and his partner, Barry Shorten’s successful merger/acquisition of Contract Staffing, a Buffalo, N.Y. PEO,
which now serves as Alcott’s Western New York division. Mr. Basso’s distinction as the recipient of the
National Federation of Independent Businesses’ 2005 Small Business Champion Award was also cited.
The Alcott Group received further recognition by Long Island Business News in its article entitled,
“Human Resources – The labor pool…HR consultants cull the resources of many small firms to win better
benefits packages” (July 29-August 4, 2005). In the article, Alcott client, Servo Corp. of America President
Steve Barre discussed how well his company’s relationship with Alcott has worked for Servo. Mr. Barre said,
“The benefits are much better than we could afford even with 200 employees."
Click here to read more
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IS A PEO RIGHT FOR YOU?
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Take Alcott's
SELF EVALUATION
to learn if your company is a candidate for HR Outsourcing.
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FREE HR STRATEGY EVALUATION
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Is your HR shop in order? Do you have a focused HR strategy or is it something you just
can't seem to get to? Alcott's on-site evaluation will help you create an actionable
plan for addressing one of your most critical business processes. Click here to request a
FREE HR STRATEGY EVALUATION
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Out & About on Long Island:
October 14, 2005
LI Capital Alliance
Topic: Banking & Alternative Financing
Fox Hollow, Woodbury
8:00am - 10:00am
http://www.licapital.org
October 18, 2005
LISTnet
Seminar: All About e-learning: Sales / Product Training
Hosted by LISTnet's e-learning SIG
8:30am - 11:30am
Integra A+, Bayshore, NY
LISTnet SIG Event
October 19, 2005
LISTnet
Human Resources SIG
Location TBA
8:30am - 10:00am
RSVP: pamb@alcottgroup.com
October 19, 2005
LI Entrepreneurs Group
Speed Networking event
North Fork Theatre, Westbury (formerly Westbury Music Fair)
6:00pm - 9:00pm
http://www.lieg.org
October 21, 2006
HIA
Healthcare Symposium
Huntington Hilton, Melville
8:00am - 3:00pm
HIA Symposium
October 26, 2005
LIFT
Business & Technology Expo
Huntington Hilton, Melville
8:00am - 1:00pm
LIFT Expo
October 27, 2005
LISTnet
Emerging Technologies SIG Meeting
Topic: Increasing Sales by Asking the Right Questions
Huntington Hilton
6:00pm - 8:00pm
LISTnet SIG Event
November 1, 2005
LISTnet
Tech Melt 2005
LI Business & Technology Center, Great River
8:00am - 3:00pm
LISTnet Event
October 9, 2005
repeat on October 15, 2005
The Alcott Group
Seminar: HR Outsourcing - A Best Practices Mgt. Tool for Growing Businesses
8:00am - 10:00am
Alcott Corporate Offices - Farmingdale, NY
Call for additional information - Al Anastasi (631) 420-0100 Ext. 313
December 15, 2005
LISTnet
Twenty Top Techies (T3)
Honoring behind the scenes techies
6:00pm
LI Business & Technology Center, Great River
LISTnet Event
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