Hot Growth Special Report 2006 >



Gevity HR (GVHR)

For small and medium-sized businesses, often operating on a shoe-string budget, finding the right staff -- and managing the paperwork to employ them -- can be a real headache. That's where Gevity comes in. The Bradenton (Fla.) company helps entrepreneurs cut down on the bureaucracy of human resources with a combination of services: finding the right talent, processing their paychecks and company taxes, and ensuring firms' compliance with government regulations. It's a nifty niche. Profits at Gevity have jumped 102% on average over the past three years, to $37.4 million in 2005 in revenue of $608.8 million. In 2005, the number of Gevity-supplied employees who stayed with client companies jumped to 82.5%, from 77% in 2004. And the addition of UnitedHealthcare as a health-insurance provider expanded its network of reputable providers. Add it all up, and the company promises double-digit growth in 2006.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

19.4 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

101.5 %

Return on Inv. Capital (3-yr.)

20.5 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

24.1 %

P/E Ratio


No. of Employees


Industry Data Processing & Outsourced Services


Location Bradenton, Fla.
Phone 941 741-4300
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Gevity HR provides human capital management solutions to small and medium-size businesses in the U.S. It enables its clients to achieve workforce alignment, obtain administrative relief, and access business protection services. The company assists its clients in achieving workforce alignment by enabling them to find talent, implement formal HR processes and use professional management standards, and utilize employee motivation and retention practices. Gevity HR is also involved in the management of employee administrative matters, such as processing of payroll, taxes, and insurance premiums; and record keeping and technology. It also provides business protection to clients to ensure employment-related regulatory compliance and risk management practices. The company serves health services, business services, personal services, hotel and lodging services, computer services, legal services, building maintenance, social services, general contracting and other trade work, and miscellaneous repair services industries. Gevity HR delivers its services through its human resource consultants, self-service portal, and through the Internet. As of Dec. 31, 2005, it served approximately 8,200 clients with approximately 137,000 active client employees. Gevity HR has strategic alliances with Aetna; American International Group; Blue Cross and Blue Shield of Florida; Capital Health Plan; Frontenac Company LLC; Harvard Pilgrim; Health Net; HealthPartners of Minnesota; Hewlett-Packard; Kaiser Permanente; Oracle Corporation; Spectera Vision; and Transamerica Retirement Services. The company was founded in 1993. It was formerly known as Staff Leasing and changed its name to Gevity HR in 2002. Gevity HR has its headquarters in Bradenton, Fla.

Data provided by Capital IQ
Erik Vonk

Erik Vonk, 53

Chairman and Chief Executive Officer

Total Compensation*

$ 1,460,830

Total Options Value*

$ 22,790,525

* Fiscal Year 2005

Executive Bio

Erik Vonk has been chief executive and chairman of Gevity HR, since April, 2002. Prior to his tenure with Gevity HR, Vonk established and built the North American operations for Randstad, one of Europe's largest staffing companies. He served as president and CEO of Randstad North America from 1992 through 2001, a subsidiary of Randstad Holding, a worldwide staffing services provider, where he was responsible for organizing North American operations. In addition, Vonk served as a member of the executive board of Bank Cantrade from 1989 to 1992. He held senior management positions at Chase Manhattan Bank and ABN-AMRO Bank. He has been a non-executive director of Danka Business Systems since February, 2004. He has been an independent director of CBRL Group, since August, 2005. He has been a director of Gevity HR since April 2004, and is chairman of the executive committee. He serves on the human resources and Danka 21 board committees. Vonk holds board positions with the Carter Center, Goizueta Business School at Emory University, and the Roosevelt Institute in Warm Springs. In addition, he serves as Honorary Counsel of the Netherlands for Georgia and South Carolina and is the author of Don't Get a Job, Get a Life, a book about flexible employment and work/life balance.

Management Team

Key Executives

Erik Vonk; James Slaba; Nick Iacono; Megela, Anne-Marie;Peter C. Grabowski; Sal J. Uglietta; Lisa J. Harris; Edwin Hightower; Clifford M. Sladnick

Board Directors

George B. Beitzel; James E. Cowie; David S. Katz; Jeffrey Sonnenfeld; Darcy E. Bradbury; Jonathan H. Kagan; Erik Vonk; Paul R. Daoust

Executive Data provided by Capital IQ