Many organizations have found that partnering with a reputable PEO has removed a huge weight from the shoulders of their HR professionals. However, the question arises: How can you match your HR department with the perfect PEO?
Below are some of the traits to look for in any PEO under consideration.
They Deliver the Benefits You Need
Before your HR department can identify the perfect PEO to fit their needs, they have to clearly identify what their actual needs are. They have to locate their internal pain points such as process bottlenecks.
The best PEOs can customize services depending on the need of the client. For example, if your HR department only needs help with payroll processing and benefits administration, then you should have the option to outsource only those operations to your PEO partner.
Some specific advantages that PEOs offer include:
- Cost savings for the employer on healthcare plans and benefits
- The freedom for in-house specialists to focus on core business competencies
- The ability to keep up with compliance regulation updates more effectively
With regard to health benefits in particular, PEOs have much to offer their clients. Since top-performing PEOs cover many different organizations under one "umbrella," their clients are able to offer employees better rates and benefits under group plans. Such affordable insurance options can provide your company with a huge boost in terms of employee satisfaction and retention. In fact, one study found that 88% of employees view quality and variety of healthcare benefits as important factors in any job.
They Help You Focus on the Employee
One of the primary objectives of your HR department is to promote a strong company culture that will help your business turn a profit. In turn, one of the key ways HR professionals accomplish this is to identify and recruit top talent. However, the hiring process can be difficult when recruiters and HR managers are distracted by a myriad of administrative and regulatory activities.
PEOs can help clients to refocus on their hiring strategy and tactics. HR departments have the responsibility to carefully screen and vet job applicants so that only the best candidates come onboard. When recruiters are able to focus on this main prerogative, the entire business benefits. PEOs help make this ideal situation a reality. For example, research has shown that businesses in a PEO arrangement enjoy 10-14% lower turnover rates than non-PEO clients.
They're Quick to Respond
The perfect PEO offers prompt and effective support. For instance, it is always on standby to answer compliance questions that your HR department may have during business hours. Since many aspects of HR are time-sensitive, this should be an important feature of any PEO-client relationship. Areas of support may include:
- OSHA regulations and compliance
- Workers compensation claims
- Payroll
- Benefits questions
As an example, in many states, the employer must decide whether an employee is eligible for workers’ compensation benefits within a short time frame. Some states require employers to either approve or deny a claim within 30 days or less. With support from your PEO partner, you'll be able to quickly resolve any issues around such a claim and expedite the process, no matter your company's decision.
They Share Your Passion for the Employee
When exploring your PEO options, look for an organization that shares your passion for providing an exceptional employee experience.
While your HR team will take point, the PEO will be responsible for providing most of the "back end" support, such as automating time-consuming tasks for the HR department, staying up to date on the latest compliance regulations, managing payroll and benefits enrollment, etc. Still, your PEO partner should feel strongly about the importance of focusing on employee needs, and they should be eager to support your team as you endeavor to do just that.
Finding the Perfect PEO
With some diligence and forethought, you can find the PEO that perfectly aligns with your HR department's needs. Best-in-class PEOs allow HR professionals to focus their energy on identifying and recruiting top talent by handling the day-to-day administrative duties that keep the company legally compliant. They also offer excellent health benefits to employees and are quick to respond to client questions. Finally, they share a passion for improving the employee experience which informs all of their policies and expectations.
