1. PROFESSIONAL EMPLOYER ORGANIZATION (PEO) HR OUTSOURCING Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Professional Employer Organization (PEO) Type of outsourcing that enables businesses to partner with a PEO to handle organization’s HR functions. Joint-employment or co-employment arrangement in that PEO provides client with HR solutions and becomes employer of record for its worksite employees. Pro-2

3. PEO Contractually Assumes Some Accompanying Employer Legal Risks And Liabilities And Typically Handles HR Functions Considered Non-core To The Business, Such As payroll processing tax administration compliance and regulatory issues reporting, benefit plan design and administration employee relations advisement training and development unemployment insurance and claims management workers’ compensation coverage and administration and safety programs Pro-3

4. 3 PEO BENEFITS 1.Frees resources and time to focus on core business, profitable activities and growth. 2.Reduce employer-related exposure by leveraging a team of professionals’ expertise, particularly for complex employment-related matters, rather than relying on a few or less individuals. 3.Gain efficiency through integration by having one system and one provider service several areas rather than divvying the services out as piecemeal to different providers. Pro-4

5. The PEO setup works particularly well with small to mid-size businesses that do not have the capacity for an in-house HR Manager or want to leverage better efficiency and integration by collaborating with specialists. Pro-5

6. 10 Reasons Why Organizations Outsource Non-core Administrative Functions Through PEOS 1.Allows business owners to outsource non-revenue producing functions and refocus their attention to bottom line. 2.Minimizes capital investment in technology and eliminates technology obsolescence. 3.Allows business owners benefits of growth minus burden of asset ownership Pro-6

7. Reasons Why Organizations Outsource Through PEOS, Cont. 4. Makes operating costs more predictable and stabilizes cash flow. 5. Converts what is traditionally a fixed administrative cost to variable costs. 6. Provides employees with access to enhance employee benefits. Pro-7

8. Why Organizations Outsource Through PEOS, Cont. 7.Increases ROI on existing employees, through refocus on core functions. 8.Helps relieve business owners of employment-related responsibilities and liabilities. 9.Reduces vulnerability to key employee turnover. 10. Enhances owner’s exit strategy. Pro-8

9. PROFILE OF A PEO Odyssey One Source, Inc. is a HR outsourcing firm dedicated to helping clients grow their businesses through a full range of strategic HR administration and management solutions. Founded in 1990 as an HR consulting firm, Odyssey helped pioneer the PEO industry and emerged as one of the country’s first full-service PEOs. http://www.odysseyonesource.com Pro-9

10. LINKS www.shrm.org. www.napeo.org. http://www.odysseyonesource.com http://www.theblackbookofoutsourcing.co m Pro-10