15 May Use of PEO's and BPOs (...save up to 30%...increase...satisfaction...)

[Paul Terlemezian]

Two points of interest for me:

 

1. The growth of the industry has been influenced by the complexity of laws and regulations (this doesn't sound like fun) and yet the result is cost savings and increased employee satisfaction. I wonder if this also related to increased worker productivity or some other measurable business result?

 

2. In the 20th century I learned of "The Buyer's Triangle." Functionality, time and cost (Better, Faster, Cheaper) were three aspects of decision making. We came to expect that we could only have two out of three. We could not have it all!

 

Better and faster would not be cheap.

Better and cheaper would not be fast (i.e. we would have to wait)

Faster (i.e. available now) and cheap meant lower functionality.

 

The PEO industry (clearly a knowledge worker industry) allows high functionality, less cost and improved quality - Better, faster, cheaper.

 

This has been the impact of technology - when applied well - technology can replace existing methods - better, faster and cheaper. We can have it all.

 

Do we need legislation to accelerate this for the learning industry? What new businesses would emerge if there were legislation that required:

 

1. Public companies to prepare succession plans

2. Public companies to reveal employee attrition rates by function (i.e. customer service; sales; R&D:Senior management...)

3. Pulbic companies to reveal investments intended to increase the knowledge of its workforce?