CNA UniSource Launched As Professional Employer Organization

CNA UniSource has announced the start of its business operations, which include payroll administration, employee benefits, workers' compensation coverage and human resources services. The business targets employers with between five and 500 employees. It does so by becoming what it sees as "a co-employer with the business owner," assuming the responsibility for many of a firm's administrative functions.

The new company handles daily administrative responsibilities, including responding to unemployment claims, providing workers' compensation coverage, enrolling employees in group medical benefits and maintaining personnel files. CNA UniSource also provides a vast array of benefits, including HMOs, dental plans, flexible spending plans and retirement plans.

"Keeping up with many workers' compensation laws and other employment-related requirements has become a full-time job in and of itself," says Najeeb A. Khan, president and chief executive officer of CNA UniSource, part of the CNA Financial Corp. family.

By eliminating administrative issues, the PEO industry is poised for rapid growth in the next few years. There are currently about 2.5 million employees in a PEO arrangement today. It is projected that over the next five to 10 years that number could increase to as much as 20 million.

CNA UniSource has been introduced in many states. Remaining state introductions will continue through 1998.