Startups, Entrepreneurs Can Win War for Talent with Professional Employer Organization

ADP TotalSource (No. 21 on the DiversityInc Top 50 Companies for Diversity list), the largest Professional Employer Organization (PEO) in the United States, will now offer startups and entrepreneurs the opportunity to be more competitive in the war for talent by providing their employees benefits and HR resources similar to those enjoyed by employees in FORTUNE 500 companies.

ADP has traditionally offered HR and payroll services to businesses of all sizes. However, ADP TotalSource, with more than 400,000 worksite employees which has traditionally served small businesses with more than 10 employees, can now enter into a co-employment relationship with very small firms with as few as two employees. In a co-employment relationship the business owner continues to handle the day-to-day management of their employees, while ADP TotalSource serves as a comprehensive HR partner for benefits, payroll, compliance, risk management, safety, recruiting and more. As part of this relationship, each ADP TotalSource client company is connected to a dedicated HR professional who knows and understands their business objectives and can help make strategic HR decisions to help each client succeed.

“Today’s announcement offers significant opportunities for startups and very small businesses,” said Maria Black, president of ADP TotalSource. “Now, the country’s largest PEO can directly help lean startups focus on mission-critical objectives while freeing them from many of the compliance, HR and benefits management challenges that every new business faces. We want to help these entrepreneurs develop their businesses and serve their customers.”

With ADP TotalSource, clients gain access to an extensive suite of offerings including health benefits, employee growth and development programs, retirement plan services and compliance assistance. These, in turn, allow clients to provide more robust HR services and benefits to help attract and retain the employees they need to drive business success. Through the co-employment relationship, client companies and ADP TotalSource share responsibility for minimizing certain employment risk.

“Co-employment is an increasingly viable option that companies of all sizes as well as venture capital firms, incubators and other professional services firms are starting to consider,” said Black. “Firms are turning to the PEO model because it gives them peace-of-mind when it comes to HR and employee benefits administration responsibilities. That’s good for our clients, and it’s good for ADP TotalSource.”

ADP TotalSource has continued to grow organically over the last 17 years. In fact, if ADP TotalSource were an independent employer, its work with more than 400,000 worksite employees would rank it among the top five private sector employers in the United States.

For more information about ADP TotalSource, please call 1-800-HIRE-ADP (1-800-447-3237) or visit

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