When your HR department is spread too thin, it's difficult for them to focus on all the tasks that help maintain and grow your business. When you entrust your HR department with a professional employer organization (PEO), you can outsource some administrative tasks, allowing your human resources personnel to focus on your core business needs.
Below are some ways to tell that your HR department should be supplemented with a PEO.
Signs that It’s Time to Partner with a PEO
Several factors impact an HR department's choice to seek a partnership with a PEO. Some factors that strongly indicate it's time for you to find a PEO partner include:
- You are missing out on top talent because you cannot afford competitive benefits packages. PEO partnerships give you access to their benefits plan which they negotiated on behalf of all the employees they represent from different businesses. By increasing the size of their risk pool, PEOs can offer Fortune 500 benefits packages at Fortune 500 prices
- Your business is outgrowing HR’s capacity. By outsourcing and automating many HR tasks, you create an atmosphere where it's easier to hire and onboard new employees to help you meet customer demands. Working with a PEO frees up time to deal with growing pains, so your business thrives as you reach new heights.
- You want to consolidate your HR tech stack. Partnering with a PEO includes a software package that integrates tasks such as payroll, benefits enrollment, and onboarding. This can also result in massive cost savings. PEO software solutions also allow you to automate common forms. For example, you can electronically deliver forms like W-4s and I-9s to new employees as part of onboarding without having to manually have them fill out the paperwork
- Your HR department is spinning its wheels to keep up with compliance issues. Failing to comply with the newest regulations can result in massive fines and lawsuits. PEOs will always keep you in compliance because they stay up-to-date with the latest local, state, and federal regulations.
Advantages of a PEO Partnership
Although partnering with a PEO means outsourcing HR tasks and improving technology, the ultimate benefit of a partnership has nothing to do with technology. Your HR department gets to return to focusing on the 'human' in human resources. Specifically, your HR personnel will have the time to concentrate on talent development and core business competencies. This not only raises retention but helps attract top-tier candidates.
When you entrust your HR department with a PEO your business can benefit from affordable benefits, increased efficiency, and better technology, Additionally, you can save headaches and money from struggles related to HR compliance. At the end of the day, partnering with a PEO helps HR departments focus on their strengths while driving results for your business.