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Fed up with HR?

Let someone else handle it. Professional employer organizations let you hand off the headaches and focus instead on your business.

By: Max Chafkin

Published May 2006

Peter McCann's HR troubles started in 2001, when a former employee filed a complaint alleging that Ideal Images, McCann's Omaha-based screen printing and embroidery company, fired her because of her race. McCann and his entire staff were questioned by investigators from the state's Equal Opportunity Commission, and the investigation dragged on for several stressful weeks. The complaint was eventually dismissed, partly because the worker's replacement was also a minority, but the thought of another discrimination charge frightened McCann, who began to obsess over everything from background checks to performance evaluations.

By 2004, McCann's staff had tripled, to 27 employees, and the HR chores had become nearly all-consuming. Meanwhile, workers were grumbling about Ideal's lack of flexible spending accounts and a retirement plan. McCann was eager to offer the benefits, but he didn't