Profile: TriNet Group Inc (TNET.N)
2 Dec 2016
TriNet Group, Inc. (TriNet), incorporated on January 26, 2000, is a provider of human resources (HR) solutions for small to medium-sized businesses (SMBs). The Company's human resource solutions include offerings, such as multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers compensation insurance and claims management; federal, state and local labor, employment and benefit law compliance; risk mitigation, including employment practices claims management; expense and time management, and human capital consulting. Its cloud-based HR software systems are used by its clients and their employees, whom it refers to as worksite employees (WSEs), to store and manage their HR-related information and conduct a range of HR-related transactions anytime and across the world. It has served over 12,700 clients in all over 50 states, the District of Columbia and Canada, co-employed over 324,000 WSEs.
The Company offers professional services; insurance services, including employee benefit plans, workers compensation insurance and employment practices liability insurance, and seasonality and insurance variability services. It provides a range of HR professional services to execute fundamental HR transactions and manage a set of HR regulations, costs, risks and responsibilities. The Company provides its clients with fundamental HR transactional capabilities, including multi-state payroll processing and tax administration, as well as a cloud-based system of record for various HR transactions. Its online and mobile self-service tools enable clients, to manage employee hiring and termination, administer changes to employee payroll, view real-time benefits data and create compensation reports. In addition, WSEs are able to access its system to manage their own payroll information, request paid time off (PTO) and view approval status real-time, view paystubs, PTO balances and W-2s, among others.
The Company monitors changes in the labor, employment and benefit regulatory environment, and offers guidance and training to clients to assist them in avoiding or reducing liability and exposure. The Company's professional HR services include access to HR templates, best practices, employee handbooks, disciplined process management guidelines, employee relations consultation, issue investigation, workplace employment posters and compensation practice benchmarking data. In addition, its clients can consult directly with the Company's HR professionals through a range of interaction models, ranging from call center support for basic questions to pooled specialized resources and HR professionals, depending upon the needs of the client and their WSEs. The Company's HR teams also provide additional services upon request to support-stages of its clients' growth, including recruiting or other services (with an incremental charge for such services).
The Company offers its clients and WSEs access to a range of TriNet-sponsored benefits and insurance programs that many of its clients may be unable to obtain for their WSEs on their own and that are compliant with state, local, and federal regulations. In addition, its insurance services offerings include plan design and administration, enrollment management, and WSE and client communications relating to its sponsored benefits and insurance programs. It sponsors and administers various fully insured, risk-based employee benefit plans, including group health, dental, vision and life insurance as an employer plan sponsor. It also offers other benefit programs to clients and WSEs, including individual life insurance, a legal services plan, commuter benefits, home insurance, critical illness insurance, pet insurance and auto insurance. It provides group insurance coverage to WSEs through a national network of carriers, including Aetna, Blue Shield of California, Florida Blue, BlueCross BlueShield of North Carolina, Tufts, Kaiser Permanente, MetLife United Healthcare, EyeMed, Delta Dental and Vision Service Plan.
The Company provides fully insured workers compensation insurance coverage for its clients and WSEs through agreements that it negotiates with its third-party insurance providers. Its services include performing workplace assessment, safety consultation, accident investigation and other risk management services at its client locations to help prevent situations that could lead to claims and services to help remediate claims when they occur. The Company provides employment practices liability insurance (EPLI) for its clients through agreements that it negotiates with its third-party EPLI insurance provider. These EPLI policies provide for a per-claim retention amount. For most of its clients, the retention amount is split between the client and TriNet, with the client paying its portion of the retention amount first. For claims covered by the EPLI insurance, actual litigation defense is conducted by one of several outside employment law firms chosen by the EPLI carrier with whom it and its EPLI carriers have previously negotiated rates, established billing guidelines and invoice review processes and developed a case management protocol to defend such claims. The Company's business is affected by cyclicality in business activity and WSE behavior. The Company also experiences various levels of client attrition in connection with renewals of the health insurance it sponsors for its WSEs.
TriNet Group Inc
1100 San Leandro Blvd Ste 300
SAN LEANDRO CA 94577-1599