A common misconception about Professional Employer Organizations (PEOs) is that they exist to replace HR departments. The truth is that PEOs exist to relieve the administrative burden that keeps HR employees from focusing on high-priority, valuable tasks.
Beyond handling paperwork, PEOs come with benefits that result in lowered risk, lowered health costs, and even tax breaks.
Services Provided
PEOs can handle any aspect of Human Resources that is giving a company trouble. That means assisting in administrative duties regarding payroll, health benefits, worker’s compensation, regulatory compliance, retirement/401ks, risk management, and the development of HR policies.
Benefits of PEOs
Businesses that partner with a PEO have a higher rate of growth when compared to companies that do not work with a PEO. It is estimated that companies working with a PEO grow 7 to 9 percent faster than other companies. In large part, this is because PEOs enable in-house employees to focus on revenue-generating tasks.
Because PEOs have more purchasing power than the average company, they negotiate better rates with health insurance companies. Businesses that partner with PEOs get the same health insurance at the same low price.
Further savings come from reducing regulatory risk. Companies face major fines and damage to their reputation if they are not up-to-date with regulations under the Fair Labor Standards Act (FLSA), OSHA compliance, and various laws that govern each state. PEOs bring on regulatory experts to ensure you can sleep better
This also means having a safer, more enjoyable place of work for your employees.
For example, Aventa Specialized Women’s Care began working with a PEO to improve their HR Department. The PEO took on administrative tasks for the small business and cleared up more time for the HR team to focus on resolving interpersonal concerns within the company.
Benefits of PRemployer
PRemployer brings extra benefits to the table. Unlike other PEOs, PRemployer can handle staffing and hiring issues. They can even handle most aspects of employee termination. PRemployer specializes in finding the best and brightest for companies they work with.
Hiring new employees fits with PRemployer’s mission: to make life easier for in-house HR representatives. While PRemployer can take up any HR responsibility, the goal is to supplement HR to optimize a company’s revenue generation.
