A Professional Employer Organization (PEO) offers your small or mid-sized business comprehensive outsourced HR services. If you have an internal HR team already, a PEO works to complement your employees, not replace them. Partnering with the right PEO lets your in-house team focus on your core business needs while the HR experts work to protect every facet of your business.
From payroll processing to benefits administration, a trustworthy PEO provides your company protection by working to keep your business compliant. This reduces the likelihood of costly fines and penalties. The right PEO will protect your company in 10 key ways:
1. HR Compliance
Compliance and regulations often trip up small businesses. Whether the business owner is multi-tasking or an inexperienced HR employee makes innocent mistakes, HR compliance violations can be extremely costly.
Besides that, labor laws are constantly changing. This requires a pulse on the forthcoming changes and an ability to prepare for those changes. By reviewing and helping implement policies and procedures, your PEO ensures your company remains compliant with new laws and regulations.
2. Updated Employee Handbook and Guidelines
When employees understand what to do and how to do it, they are more efficient and productive. By providing uniform guidelines for all employees to follow, each team member has clarity about their role.
Building and updating an employee handbook is time-consuming. Documenting all of the processes your business has requires extensive time and attention to detail. Working with a PEO gives you access to HR experts who know how to craft policies and procedures to help your business succeed.
3. Uninterrupted Payroll
As a small business, you and your employees may wear several hats. There may be very little overlap between job duties. So if the person who runs your payroll is out, payroll may not be completed.
Working with a PEO, you have a dedicated team to ensure your employees get paid accurately and on time.
4. Bonded and Audited
Insurance coverage is important for any business. When you partner with a PEO, you want to know that they carry proper insurance coverage. If they make a mistake, you need peace of mind that your business is protected. Trustworthy PEOs exceed minimum insurance requirements and will be happy to provide you with proof.
5. Problems Solved
HR problems arise consistently, and each time the circumstances may be different. You want to make sure the HR needs of your team are handled correctly and in a way that does not put your business in jeopardy.
A trustworthy PEO will be available to you whenever you need them. They can provide you with clear guidance on how to handle any difficult HR matter no matter what time of day or night.
6. Shared Responsibility
When you partner with a PEO, the PEO becomes the employer of record for your employees. This relationship gives the PEO the responsibility to handle payroll errors and omissions, if they occur. Unlike other HR outsourcing solutions, this means trustworthy PEOs have “skin in the game.”
7. In-House Insurance Agency
Your business needs insurance coverage. Depending on your industry, however, that might be hard to come by and might present budget problems. A trustworthy PEO has relationships to help you get the most cost-effective plans possible. Your PEO can provide you with access to Employer Practices Liability Insurance (EPLI), cyber security insurance, workers' compensation insurance, and many other forms of insurance.
8. Files Secured
There are laws and regulations about how businesses store employee files. I-9 employee verification forms, for example, must be kept separate. This can create hassles internally for the storage of all these different documents.
Your PEO will provide you protection by giving you access to a secure online portal. Storing employee data digitally ensures that only the right employees have access to the right information. Each employee will be able to see their paystubs and benefits information, whereas managers and supervisors may have access to additional employee documents.
9. Learning Management System
A trustworthy PEO will have a learning management system already in place for your employees to access.
Starting with new hires, your PEO will make sure the new employees complete the required trainings. When requested, each employee will be provided with updated trainings to ensure they are up to date on current issues.
10. Stable Health Insurance Premiums
After pay, health insurance is the most important benefit a business can offer employees. Unfortunately, many small businesses cannot afford quality health coverage. Some businesses even cease offering coverage when prices get too high.
A trustworthy PEO will grant your company and employees access to their pre-negotiated healthcare plans. These plans, negotiated at scale, often provide better coverage at lower prices to you and your employees. They also are less volatile when it comes to renewal rates.
Trustworthy PEOs can be the Difference You Seek
PEOs remain the best HR outsourcing option for small and mid-sized businesses alike. But some PEOs are better than others. Your best bet to make sure you partner with a trustworthy PEO is to see if they can protect your business in the above ten ways.
To determine which PEO specifically should be trusted, download our eBook "How to Find a PEO You can Trust."