Are you drowning in paystubs, I-9s, and benefits packages?
Rest assured, there could be a better way.
Today we’re putting the spotlight on your Human Resources department and explaining why it might make sense for you to outsource a portion of the work to a PEO.
What IS a PEO, Anyway?!
Glad you asked.
A PEO stands for professional employer organization.
And the same way you can outsource strategic finance to a fractional CFO, you can call upon a PEO to step in for HR assistance.
When you partner with this kind of company, you enter what is called a “co-employment agreement.” Simply put, this means your full-time employees are employed by both your company and the PEO.
Got It. So What’s the Breakdown of Roles and Responsibilities?
Don’t worry if the idea of passing the baton sends shivers down your spine. You’ll still get to control many crucial pieces of your human resources puzzle.
Hiring top talent, managing job functions, and overseeing day-to-day tasks still all sit underneath your umbrella.
But benefits, compliance, other to-dos that keep most HR professionals from seeing the light of day?
That’s where a PEO comes into play.
Here’s Where Your Outsourced HR Team Can Help
According to NAPEO, working with a PEO can make businesses 50% less likely to cease operations AND can also accelerate company growth between 7 and 9 percent.
With a PEO, you’ve got a full suite of trained professionals on board to help maximize talent, improve operations, and reduce the risks that come with hiring new employees.
Take a look at some of the biggest advantages below:
Update Your Benefits Package: Let’s face it. The talent pool is becoming larger every day, and you need to have top-tier benefits to recruit (and retain) the best. With a PEO, you can get access to attractive benefits packages for less money than it would typically cost a small-to-mid-sized business that’s going it alone.
Get Clear on Regulations: Sorting through constantly changing state and federal laws can be a nuisance for even the most detail-oriented mind. With a PEO, you’ll unchain yourself from the frustration of dotting your I’s and crossing your T’s by partnering with specialists who stay on top of laws, regulations, and reporting requirements.
Take Over the Nitty-Gritty: A PEO will also take over the payroll management, effectively giving you back hours each week to focus on big-picture strategy. They can also assist with administrative tasks, like onboarding new hires, terminations, and putting together an employee handbook that makes your talent proud to call your company home.
Reduce Risks Associated with Employees: Besides getting bogged down by an endless barrage of forms, mitigating risk is one of the less alluring aspects of the HR job. A PEO can help handle worker’s compensation and employment claims, so you can focus on driving the business’ bottom line.
Is My Company a Good Fit For a PEO?
If you run a small to medium-sized business, partnering with a PEO could be just what you need.
Imagine never losing a wink of sleep again worrying about whether an I-9 fell through the cracks… or knowing you’re offering a retirement plan that rivals that of a Silicon Valley giant.
And imagine what your days would look like if you weren’t drowning in the overwhelm associated with compensation. For many businesses, this is the most expensive line item — and often the most time-consuming.
They can even help spearhead recruiting efforts, step in during a crisis, and navigate the emerging world of remote work.
The bottom line is this…
Companies with solid human resources processes are the ones that tend to reach and sustain peak performance. And for a small to medium-sized business, a PEO can be the best route to getting those processes in place.