Are you considering hiring a professional employer organization (PEO) for your business?
PEOs help you by serving as the employer for your business. When you enter into business with a PEO, your employees become leased to the PEO company, and they cover your administrative services and share liability with you. PEOs also offer benefits packages, including health insurance policies.
It differs from an administrative services organization (ASO) in that PEOs enter a co-employment agreement with their clients. So, PEOs employ a company’s workers, whereas an ASO just offers administrative services.
But are the primary PEO benefits?
We’ll get into 8 of them below. Keep reading to learn more!
1. PEO Companies Handle Your HR
HR is an essential part of your company, yet so few managers have the time to perform all of their duties and do HR work and other administrative duties as well. If you find yourself growing well but struggling to find the time and resources to hire an HR team or do the responsibilities yourself, think about partnering with a PEO company.
PEOs take over many HR-related duties, such as administering benefits, unemployment, workers’ compensation, and family and medical leave details. Essentially, a PEO company handles all of the employment and administrative duties in your organization, and you take care of the on-site management.
Many companies find this helpful, especially if they are smaller and don’t have a lot in terms of funds or the ability to hire an HR team. Larger companies also like taking advantage of PEO benefits because they redistribute administrative duties, letting the company’s employees focus on their daily duties.
2. Get Recruiting and Hiring Help
Are you looking to grow your team but don’t know how to get a great new employee?
When you go through the process of taking on someone new, you might find yourself overwhelmed as you try to find a great candidate, sometimes even amid hundreds of resumes. PEOs take over your job search for you, using their professional expertise to advertise your opening, wade through quality candidates, and hire the perfect person for the job.
3. Payroll Administration Assistance
Paying your employees constitutes one of the most important parts of your business, and as a company owner, you need to make sure you have the best experts handling your payroll.
Payroll also involves the payment of your employee’s taxes and how much goes into their individual bank accounts, so it’s important that you have someone who knows how to properly handle and organize all of your payroll details. That’s where a PEO service comes in. As the employer of your workers, PEOs handle all of your payroll needs.
4. Shared Liability
Because you and the PEO company enter a co-employment agreement, they also share liability when accidents and other incidents come about. This often saves the company a lot of trouble, as the PEO handles workers’ compensation and other key items.
As such, it’s important to communicate any issues with the PEO as soon as they happen. That way, they can help you handle them and shoulder their part of the liability.
5. Handling Local Compliance Laws
Have you ever found local business laws to be a bit of a jungle?
When it comes to running a business, it’s important to remain compliant with the law, and many business owners have every intention of doing so. Still, unless you’re a lawyer or have a law background, you might not be intimately familiar with all of the legal requirements for your business.
PEO companies manage legal compliance for you. They make sure that your business remains in accordance with the law at all times, taking action when needed to ensure you stay compliant. This takes a large weight off of your shoulders, freeing you to focus on your business.
6. More Time to Focus on What You Need to Do
Let’s face it: most managers and business owners need to manage their time carefully to ensure that everything gets done. If they had to also handle HR responsibilities, they might not be able to properly balance everything.
So, when you work with a PEO, you lighten your workload and that of your employees, freeing them to do what they do best: helping your business expand and grow.
7. Onboarding and Training Help
Getting a new employee is often exciting and difficult. You might look forward to having the extra help, but you also may have a few days where the new person–no matter how well-intended they are–just doesn’t understand the position yet.
If you want help with onboarding and training, work with a PEO company. PEOs often provide their own onboarding and training services for your company so you don’t have to worry about it.
8. Employee Benefits Packages
Do you ever find yourself trying to find the time to look over your employee benefits package?
When you try to find the best package of benefits for your employees, you might be wondering how to balance excellent plans and your budget. PEO companies provide their own benefits packages, which often include medical coverage.
Even better, the benefits packages are offered to you at a discounted rate, making sure you save money while getting great coverage.
Ready to Take Advantage of PEO Benefits?
So, are you ready to take advantage of PEO benefits?
When it comes to taking care of administrative business while promoting employee welfare and high performance, PEOs constitute your best choice. They give you more comprehensive services than ASO or HRO companies, given that ASOs don’t serve as your employer and HROs only supplement an existing HR team.
So, working with a PEO is absolutely a worthwhile move and can greatly boost your company’s growth and productivity.
Ready to work with a PEO? Contact us today to learn more!