Comments on: Administaff disappoints

By: Howard K

Howard K — Thu, 08 Sep 2011 14:40:33 +0000

Insperity (fka Administaff) has been for the last 3-4 years a nightmare to work with. I used them to handle HR/payroll/benefits for two of my companies. They are a firm that seems to be run by lawyers and have no concern other than to protect themselves from liability at the expense of their partners and clients. I do not have the time or space to list all the simply moronic, thick-headed, narrow-minded, and selfish things they have done. Their employees are rude and uncooperative. I operated my company in spite of them, not because of them. They are not in the business of providing HR services. They are in the business of collecting money from their partners/clients and protecting themselves from liability. I finally had enough and pulled the plug on them, and am now bringing all HR functions in house. Best decision I ever made.

I think they changed their name to escape their well-earned but bad reputation. Whether they call themselves Insperity or Administaff or something else, look for other options before using them.

By: James

James — Thu, 27 Jan 2011 03:46:15 +0000

I forgot to mention, they take their sweet ass time processing the check and reinstating benefits for COBRA beneficiaries. Meanwhile, I cant get my meds refilled or go to the DR. because UHC says my policy is cancelled. Payment is due 1st of the month and if it hasn’t been processed (cashed) by Administaff (3-5 days) and paid to UHC (2-3 days) before the 1st then they place your Health Insurance on hold. They say to pay out of pocket and I can submit to the insurer for reimbursement once benefits are reinstated but thats a whole other nightmare (6-8 wks) for reimbursement after the deny your claim and make you fill out extraneous appellate paperwork explaining when, where and why you skinned your knee.
So, Adminisatan now has $2300 of my $ for 2 mos of Cobra health insurance which has yet to be active for even a single day.

By: James

James — Thu, 27 Jan 2011 03:30:27 +0000

They didnt dispute UI claim, but I was legitimately laid off (not fired). It probably depends on what your employer instructs Administaff to do. Good Luck!

By: James

James — Thu, 27 Jan 2011 03:26:52 +0000

I can sympathize w/ all the Administaff frustration stated herein. I was recently laid off by my company of 5 yrs. as a result of “corporate restructuring” (which is code for having “no good reason but need space to hire a relative”). About a year and a half ago this former employer decided to contract w/ Administaff to limit liability and overhead. I was weary of the whole deal at the time, but at the behest of my employer I had little choice but to accept Administaff as my new “Co-Employer” (official Administaff terminology which wreaks of shady legal term). Anyway, things were never great w/ Administaff but nothing bad enough to where I felt I had to shout from the rooftops. Well, now that things have gone from bad to worse, Im pissed off. Administaff has done nothing but convolute an already difficult situation through this separation. They cause confusion and frustration to the point where most people just give up. I can go on about how they’re attempting to screw me out of $25k in unpaid wages, but I’ll save that for another time. What’s worse is how they manage their COBRA benefits. Federal law states that I’m entitled to continue my existing healthcare coverage with UHC (another shiite company) through my former employers group plan and benefit from their discounted group rate (not to exceed 102% of employers cost). Well, after I received the COBRA paperwork (a week after my benefits were expired with my wife and my prescription meds already running low) I was a little taken aback. First off, I was not given the COBRA paperwork until after my severance and benefits had expired. What’s more, administaff is gouging us for over $1100/mos. for the same healthcare coverage that I know for a fact my employer was paying less than $500 for. This seemed absurd and illegal, but after speaking with Administaff it appears to only be bending the law. What they’ve done is structure and catagorize their cobra plan to combat the negative impacts they suffered in 08/09. “The $1100/ mos cost is 102% of Administaff’s cost to insure COBRA beneficiaries and is catagorized seperately from the rest of the group plan members. Keep in mind that this is only for myself and my spouse and we’re both healthy young adults, and are primarily paying these ransom insurance rates as a precaution. The reason for Administaff gouging the COBRA benefiicaries is insurance companies raise their group rates as COBRA to Employee beneficiary ratio goes up. So, the group rate for the +/- 100,000 employees managed by Administaff is x including up to 5% being part of a Cobra program, but should they incur major layoffs (i.e. recession) and the percentage go up to 7% or 10% or … The rates for the entire group go up incrementally. So with unemployment rates over 9 or 10%, Administaff’s overhead increased significantly. When they attempted to pass this along to their “Client Companies” (like my former employer) they saw some of their biggest accounts leave. Administaff’s answer to all this appears to be a loose interpretation/manipulation of the law which benefits their bottom line and limits the pass through costs to their clients (the client companies who pay for their services). They really do not care about the employees of these companies, current or former, so long as the client companies aren’t upset by it. The result of this maneuver Administaff can offer Client Companies a competitive rate, Administaff maintains profitable growth and poor bastards like me have to foot the bill with what little we have saved by passing along the entire burden of marginal percentage cost increase across tens of thousands of members. Me thinks there’s some shady accounting maneuvers happening here. SEC auditors wont look for this as the money is there and is “willingly” being paid. After all, if I’m paying that much for insurance while Im unemployed there’s little likelihood that I’m going to have the time or resources to pursue legal action.
Anyway, sorry to get political, but Administaff is just another cog in the powerhouse insurance industry wheel. A wheel which has churned out the most profitable industries in the past century. They’re not going to let Obamacare or any other legislative measure compromise this. The insurance industry is too heavily invested and engrained in the US economy to just roll over and let their money well run dry. Insurance conglomerates will always find a way to “bend” the laws. The only way to combat the conglomerate insurance industry monopoly is through a free market. Legislation only makes it difficult for new companies to start, the giants have thousands of lawyers on staff just waiting for new laws that they can manipulate into killing their competition.

By: about to be let go

about to be let go — Fri, 19 Nov 2010 06:07:07 +0000

has anyone tried to file a UI claim after being let go? Was it a fight? Thanks!

By: bill

bill — Mon, 01 Mar 2010 14:34:01 +0000

the mega PEOs often have the issue of being “impersonal” and not handling customer service as important. my way of saying it is that it is like dealing with the post office or a govt agency. that is why the PEO i invested in is taking a different approach. like it is “less efficient”, but we really do stress customer service and low internal employee turnover.

By: Chris Poole

Chris Poole — Fri, 26 Feb 2010 18:39:35 +0000

If you are an employer and would like to find a more qualified business model that works for you, I can help. Let us provide you with an RFP.

By: PEOSPectrum

PEOSPectrum — Fri, 26 Feb 2010 12:51:43 +0000

Disgruntled ASF clients, you’re not alone in your concerns. Don’t let their bad practices put a bad taste in your mouth for the entire industry. At PEO Spectrum, we’ve literally helped dozens of Administaff clients find other PEOs that do deliver on their services, and if you’re interested, we would gladly put you in touch with them. Check out our website at http://www.peospectrum.com. Also, check out the latest ASF concern http://phx.corporate-ir.net/phoenix.zhtml?c=105568&p=irol-newsArticle&ID=1387087&highlight=

By: TT

TT — Sat, 09 Jan 2010 00:10:44 +0000

I have so much bad experience with Administaff that I hate that company. Frequent errors with their pay accounting and constant issues with benefits. They even send a lot of e-mail spams to promote their money-making, they call, Administaff benefits. Lately (12/31/2009), they failed to deposit employee pay to banks which caused so much inconvenience to their customers. A lot of employees were on holiday vacation during that period.
Direct deposit is something that should never fail. Administaff is incompetent and I hope that my employer get rid of them.

By: CP

CP — Thu, 16 Apr 2009 20:16:47 +0000

Administaff has been a complete disappointment. They make one “error” after another after another…..I really do not want to deal with them for 401K, healthcare, etc.

There comes a time when there are too many mistakes, which are very suspicious, and one starts to think that they are terribly inadequate/incompetent or they are deliberately deceitful.