As an HR professional, do any of these statements sound familiar?
“I know compliance with laws like FMLA is important, but I’m not 100% certain my team is aware of all the regulations.”
“We have so many different systems and processes that sometimes I’m overwhelmed. I’m concerned my team is, too—and that things may be slipping through the cracks.”
“We have a great HR team but we’re stretched thin when it comes to benefits and payroll work—how can we improve?”
If so, you’re not alone. In fact, many small to midsize business owners find themselves asking these questions, and others. Fortunately, a Professional Employer Organization (PEO) can help.
What is a PEO?
A Professional Employer Organization (PEO) allows its clients to outsource many of their human resource functions, share employment liability, and, oftentimes, gain economies of scale to bring an improved benefits package to their employees.
A PEO helps your business manage complex employee-related matters. PEO services include administration of the following:
- Employer compliance
- HR practices
- Employee benefits
- Payroll & payroll tax compliance
- Risk management and workers’ compensation claims
It contracts with your business to perform these processes, assume associated responsibilities, and provide ready expertise in human resources management.
4 Crucial Things You Can Do With A PEO (That You Can’t Do Alone)
1. Benefits That Bring In The Best Talent
To attract and retain top talent, small businesses must be able to offer competitive benefits. But many miss out on great employees because, alone, they can’t afford the same benefits the competition offers. When you partner with a PEO, you gain access to benefits you may not otherwise be able to afford.
2. Employer Compliance Expertise
Being an employer gets more complex by the day. Federal requirements, state and city legislation, and other mandates require compliance, but those requirements aren’t always communicated effectively (or correctly). This sets employers up to unintentionally make mistakes.
A good example of this is providing paid sick leave to employees. Laws vary in every state, and multi-state employers are challenged with keeping up and complying with laws in every state they operate in—but they may not even have the systems that help them to comply.
PEOs stay informed about all legislation that impacts employers. They also help their clients create necessary policies and practices when required.
3. Streamlined Technology
PEOs offer their clients a comprehensive technology solution that handles electronic onboarding, payroll processing, and data exchange with vendors (like insurance companies). Having all their human resource information in one system with appropriate levels of manager access and employee self-service features is something most small to midsize businesses can’t do on their own.
Systems like this bring a lot of business efficiencies. Without this technology, there is a lot of costly manual intervention involved, which can cause delays and errors. Employees of PEO clients love that this technology puts information at their fingertips that they would otherwise have to call their HR rep or a vendor to access.
4. A Wealth Of HR Experience & Knowledge
PEOs offer their clients a whole team of experts whose knowledge is leveraged to serve their clients’ needs. PEOs help with everything HR-related, including:
- Managing employee performance
- Training managers on effective interviewing
- Helping with the due diligence of acquiring other businesses
- Managing all employee benefit programs
- Insurance renewals and open enrollment
- Dealing with workplace accidents
- Handling restructuring and/or downsizing
- And more!
Small businesses simply can’t find all this crucial knowledge in just one person. Even if you have a qualified, competent HR professional on staff, it’s unlikely they would have ALL this expertise and knowledge of best practices.
PEO teams have a variety of expertise in all areas, so clients like you can tap into the professional experience in different industries and get the right counsel and advice.
Want to learn more about PEOs?
Staffed by knowledgeable, experienced individuals, a PEO may be the most beneficial way to get HR support for your company. Find out more about whether or not a PEO is the right option for you in the free white paper, Everything You Need To Know About PEOs.