Group Management Services Acquires Corporate Business Solutions

GMS expands its footprint with addition of Georgia-based HR outsourcing provider.


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RICHFIELD, OhioJune 19, 2020 /PRNewswire/ — Group Management Services Inc. announced today the acquisition of Corporate Business Solutions, a Georgia-based Human Resources Outsourcing provider.

CBS was founded more than 20 years ago as a third party 401(k) administrator, developing over time into handling a full array of HRO services. This acquisition will add about 70 clients and 3,500 worksite employees to GMS.

As a Professional Employer Organization (PEO), GMS provides a suite of comprehensive HR solutions, allowing clients to focus on core business. These services include Payroll, Human Resources, Risk Management, and Benefits.

Both organizations share an emphasis on giving their clients a competitive edge when it comes to the technology, service levels, and human resources they provide. This is evident in the fact that they share a 90-plus percent client retention rate, well over the industry average.

Find out how PEOs help businesses: https://www.groupmgmt.com/why-gms/education-center/what-is-a-peo/

GMS started in the Cleveland area in 1996, eventually expanding into Columbus and Cincinnati, and now have 10 offices nationwide. The acquisition of CBS will further extend their client base outside of Ohio and increase their presence in the Southeast.

“We’ve been trying to expand our footprint outside of Ohio and have been showing some success in the past five years,” GMS President Mike Kahoe said. “In 2014, we were 99 percent Ohio-based. Today we are 90 percent Ohio-based and this will move us closer to 80 percent, making us a more diverse company.”

CBS President Jim Karle adds, “The acquisition by GMS will enable CBS to further deliver on its promise to provide our clients a wide array of quality insurance products that are affordably priced. Enhancing our clients’ competitive edge has always been core to CBS – this accelerates our ability to do that for our many valued clients.”

GMS plans to continue their expansion and grow organically and through acquisitions moving forward. This is just the beginning of more to come.

About Group Management Services
GMS has partnered with more than 1,500 clients across the country, representing about 26,000 employees from 10 different locations throughout the United States. We enable those clients to outsource all their back-office functions the areas of payroll, human resources, risk management, and workers’ compensation. For more information on GMS, visit: https://www.groupmgmt.com/about-us/.

 

Small businesses turning to PEOs for benefits, HR

An excellent article out of Benefits Pro on PEO that came out the last day of NAPEO… Trying to catch up after Austin!

“…which found that between 14 percent and 16 percent of those small businesses are reaching out to PEOs that provide payroll, benefits, regulatory compliance assistance and other HR services, rather than dealing with HR and benefits issues themselves.”

The statistics cited for the article provided by our friends at NAPEO in their fourth white paper that empirically backs up the value of the PEO model in growing your business, retaining your employees and offering a better employment experience to the American worker.

“…last year’s report figures indicating that PEOs generated between $136 and $156 billion in gross revenues, provided services to between 2.7 and 3.4 million workers, and offered HR, benefits and compliance assistance to between 156,000 and 180,000 small- to mid-size businesses.”

Wow, means ADP who payrolls 1 in 7  American workers now payrolls almost 1 in 5 coemployed workers.

As evidenced by the highly attended annual conference in Austin, with many newcomers in attendance, there is another surge of momentum going into the all-important 1/1 selling season where anywhere from 30-50% of new business for a growth PEO is attained.

The industry becomes more and more compelling as time goes by.  Really nice to see.

It was great to see and meet new faces, but always epic to see old friends of many years. Thanks for your friendship, love and loyalty.

NAPEO is in our fair town of Orlando next year… see you there!

-PRH