Small business owners wear many hats and need to plan, manage their employees, and handle all of their HR needs. With their attention always divided so much, anything that helps lighten their workload makes a huge difference. For many businesses, PEOs help them do just that by improving their company’s overall performance and making their lives significantly easier.
A Professional Employer Organizations (PEO) provides comprehensive HR support for small businesses, lifting that burden off their shoulders. Additionally, PEOs help small businesses consistently grow at a faster rate than competitors who have not partnered with one. Here, we’ll discuss how PEOs are the solution small businesses need to get ahead of the competition.
PEOs Handle Tedious Tasks for You
A PEO will handle many HR tasks for you, including:
- Payroll
- Tax remittance
- Benefits administration
Among many other HR tasks, your PEO will handle complex and time-consuming duties that free you up to focus on your core business needs. To properly manage payroll, you need to make sure that employees are paid accurately and on time. By ensuring accurate payroll, your employees feel confident about working for you and that your business is strong. With a PEO, accurate payroll will ensure that your employees remain loyal to your organization.
PEOs also handle benefits administration. This is a complex area of HR and often trips up small businesses. It can result in costly fines if not handled properly. Every employee wants high-quality benefits and PEOs can give your employees exactly what they want at costs you can afford. Offering improved benefits helps your company attract and retain top talent in your industry.
You Have Access to Better Benefits
PEOs provide small businesses with better benefits at cost-effective rates. Through economies of scale, a PEO negotiates better rates for your company's benefits through co-employment. Co-employment is a relationship that allows your PEO to become the employer of record for your employees, while letting you keep full control over your company.
Together with their other client’s employees, PEOs can negotiate better rates by reducing the insurance company's risk by having more employees. Co-employment provides the PEO the opportunity to negotiate better rates for their clients to give them the ability to offer their employees exactly what they want.
A co-employment relationship does not reduce your ability to control the day-to-day operations of your business. You still retain full control over your employees and have full say over hiring, firing, and other decisions regarding employees.
Offering a best-in-class benefits package has many positive effects for your small business. Because employees want high-quality health benefits, by offering this benefit to your team, they feel cared for and have more incentive to stay because of the benefits your company offers. Many workers may be enticed to join your company because of the benefits you offer.
Being able to offer Fortune 500 benefits without Fortune 500 costs, your company can get a competitive advantage. Employees look to benefits offered by employers. They want access to high-quality benefits and care that they may not be able to get elsewhere. By offering these benefits through your PEO, you can help attract and retain top talent in your industry.
A PEO Will Keep You Compliant
Compliance risks run rampant. Without accurate guidance, your company risks costly and embarrassing compliance fines and employee lawsuits. Noncompliance costs small businesses great sums of money by failing to follow employment law compliance and regulation. Even innocent mistakes can cause serious fines.
Compliance issues arise in several areas and may include payroll or tax errors. These mistakes can cost small businesses thousands of dollars per year, and are just two examples of the many types of protection a PEO can offer to you.
PEOs are HR experts who understand the regulations your small business faces. They have the knowledge and experience to help keep your business compliant. This proactive approach keeps your revenue with you. It can save your company significant sums of money, which you can re-invest in your business by offering more benefits and hiring more employees.
Many small businesses prefer to hire in-house HR employees to handle these duties. However, if your in-house HR employee is tasked with doing double and triple duty, they cannot focus on the compliance and regulation that is necessary for them to help keep your business out of legal trouble. That can result in small businesses violating employment laws.
With a PEO, however, you get access to a team of HR experts who work diligently to keep your business compliant. The right PEO can help you protect your company assets while freeing up your internal resources to focus on your core business needs and revenue generating tasks.
A PEO Keeps Your Small Business on the Right Track
HR outsourcing can provide small businesses with a great benefit that may help them increase their employee retention while also increasing their worker productivity. This can lead to rapid and sustainable growth.
A PEO provides your small business with help, support, guidance, and cost savings in all areas of HR. It helps your business grow and thrive, improving your ROI and allowing you to focus on the essential aspects of running your business. A PEO can provide this level of support by giving you access to HR experts who always have your company's best interests in mind.
From employment law compliance to risk management, a PEO can help your small business thrive by protecting your company and offering your employees best-in-class benefits. A PEO is the only HR outsourcing solution that provides your small business with comprehensive services and support to help your business thrive.
