In our line of work, it’s common for us to hear from small business owners and leaders of growing organizations about the burden of overseeing items related to employee recruitment, training, payroll, taxes, workers’ comp, benefits, and ever-changing government regulatory compliance. As a PEO we are specifically able to offer customized solutions that immediately lighten the weight on these individuals’ shoulders.
What exactly is a PEO?
A PEO (Professional Employer Organizations) is an outsource solution for HR and payroll functions including hiring, firing, payment, insurance, taxes and regulation of all of a company’s employees.
How can utilizing a PEO benefit my business?
Time and resources are the most precious commodities for a successful, growing business. By enlisting the help of a PEO, you can save time, staff and, as a direct result, money. A PEO can remove certain responsibilities from a manager’s daily routine, allowing him or her to focus on what matters most – growing the business.
Cost savings are two-fold as PEOs have better access to, and can negotiate, better benefits packages to attract a higher caliber of worker. PEOs can also help with retention with HR services providing resources and expertise ranging from advice, to improvement plans, to employee and company handbooks.
Are there any drawbacks?
As with any type of outsourcing, business owners must be willing to give up a little bit of control and oversight in order to make using a PEO successful. But in giving up this oversight, PEOs offer the unexpected benefit of acting as a buffer for legal liabilities and obligations in regards to conducting compliance training and managing employee risk and safety.
Now you know the facts. What now?
Do you currently maintain immediate oversight of all functions? Or do you outsource to free up some time to actively improve processes and grow your business? In the end, you must decide what is best for your business, but we feel strongly – and have seen it firsthand – that the benefits often outweigh the initial discomfort of giving up some control.