About Barrett Business Services
Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies. The company has developed a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. The company operates through a network of 56 branch offices throughout California, Oregon, Arizona, Colorado, Idaho, Utah, Washington, Maryland, Nevada, Pennsylvania, Delaware, North Carolina, New Mexico, and Virginia. Approximately 75% of its revenue during 2020 was attributable to its California operations. The company operates a wholly owned, fully licensed captive insurance company, Associated Insurance Company for Excess (AICE) and a wholly owned, fully licensed insurance company, Ecole Insurance Company (Ecole). AICE and Ecole provide access to insurance markets and provide risk management. Services The company’s core purpose is to advocate for business owners, particularly in the small and mid-sized business segment. Its business teams align with each business owner client through a structured three-tiered progression. In doing so, business teams focus on the objectives of each business owner and deliver planning, guidance and resources in support of those objectives. Categories of Services The company operates through two categories of services, Professional Employer Services (PEO) and Staffing. PEO The company enters into a client services agreement to establish a co-employment relationship with each client company, assuming responsibility for payroll, payroll taxes, workers’ compensation coverage (if elected) and certain other administrative functions for the client’s existing workforce. It refers to employees of its PEO clients as worksite employees (WSEs). The client maintains physical care, custody and control of the WSEs, including the authority to hire and terminate employees. During 2020, the company supported in excess of 7,500 PEO clients with an average of 108,249 WSEs. Staffing and Recruiting The company’s staffing services include on-demand or short-term staffing assignments, contract staffing, direct placement, and long-term or indefinite-term on-site management. On-site management employees are its management employees who are based on the client-site and whose jobs are to assist the company’s staffing employees. The company’s recruiting experts maintain a deep network of professionals from which it sources candidates. Through an assessment process, the company gains an understanding of the short and long-term needs of its clients, allowing it to identify and source the right talent for each position. The company then conducts a screening process to help ensure a successful hire. Technology Platform The company’s client-facing technology platform, myBBSI, includes both internally developed and licensed software, which gives its clients a range of tools, including the ability to process payroll, collect and process time and attendance information, and manage human resource information, including employee onboarding and termination, as well as compensation and payroll tax reporting. Strategy The company’s strategy is to align local operations teams with the mission of small and mid-sized business owners, driving value to their business. To do so, the company partners with business owners to leverage their investment in human capital through a high-touch, results-oriented approach; brings predictability to each client organization through a three-tiered management platform; and enables business owners to focus on their core business by reducing organizational complexity and maximizing productivity. The company’s growth strategy also focuses on various sources, including referrals from existing clients, direct business-to-business sales efforts by its area managers, and an extensive referral network. The key elements of the company’s strategy are to increase market share in existing markets; and penetrate new markets. Clients and Client Contracts The company’s business is characterized by long-term relationships that result in recurring revenue. The terms and conditions applicable to its client relationships are set forth in a client services agreement, which provides for an initial term of one year with renewal for additional one-year periods, but generally permits cancellation by either party upon 30 days’ written notice. In addition, the company may terminate the agreement at any time for specified breach of contract, including nonpayment or failure to follow its workplace safety recommendations. The company’s client service agreement requires that clients enter into a co-employment arrangement and maintains comprehensive liability coverage in the amount of $1.0 million for acts of their employees. The company has client services agreements with a diverse array of customers, including electronics manufacturers, various light-manufacturing industries, agriculture-based companies, transportation and shipping enterprises, food processors, telecommunications companies, public utilities, general contractors in various construction-related fields, and professional services firms. Competition The company’s competitors include companies that are engaged in staffing services, such as Robert Half International Inc.; Kelly Services, Inc.; and ManpowerGroup Inc. It also competes with companies that are focused on co-employment, such as Insperity, Inc. and TriNet Group, Inc.; and companies that primarily provide payroll processing services, such as Automatic Data Processing, Inc. and Paychex, Inc. History Barrett Business Services, Inc. was incorporated in the state of Maryland in 1965.
