Which of the following is a true statement about professional employer organizations?
A) PEOs have the right to hire and fire the client company's employees.
B) PEOs are less popular than in the past due to technology improvements.
C) PEOs run day-to-day operations for client companies.
D) PEOs lease employees from other businesses.
Question 2
Shelby Organic Foods is a fast growing firm that produces organic frozen food entrees. The firm employs 700 people and expects to hire more in the next few years. Currently, all of the firm's HR tasks are handled internally by Shelby's HR department.
However, top executives at Shelby are considering the idea of outsourcing benefits administration. Which of the following questions is LEAST relevant to the decision to outsource Shelby's benefits administration tasks?
A) What is the cost difference for Shelby between handling benefits internally and externally?
B) How much time is spent by Shelby's HR department handling benefits administration tasks?
C) Which Shelby HR professional should oversee benefits administration at the shared service center?
D) How knowledgeable is Shelby's HR staff about benefits administration and federal health care laws?
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