Managing HR in the Small and Medium Enterprise: The Impact of Professional Employer Organizations

Brian S. Klaas, John Mcclendon and Thomas W. Gainey

Entrepreneurship Theory and Practice, 2000, vol. 25, issue 1, 107-124

Abstract: Due to their limited size, many small and medium enterprises (SMEs) cannot justify full-time HR professionals in their organizations. Thus, the complex and time-consuming nature of many HR activities can result in a significant drain on existing managerial resources. Professional employer organizations (PEOs), however, offer SMEs an alternative for handling their workforce by providing compensation programs, regulatory compliance, and other HR-related services. This study examines the satisfaction levels of 763 customers of one large PEO. Results show that firm growth, past HR problems, workforce size, contractual detail, service representative-client relations, value congruence, and overall PEO usage are significantly related to managerial satisfaction with PEO services.

Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:25:y:2000:i:1:p:107-124

DOI: 10.1177/104225870002500109

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