Every dollar counts when it comes to running or owning a small to medium-sized business. When businesses begin growing, so do their human resource responsibilities. The U.S. Small Business Administration stated that 25 percent of small business owners spend their time dealing with employee-related issues.
Dealing with employee-related issues is a waste of time for managers to spending their time on, instead of focusing on items that make money for a business. This is why small or medium companies are hiring professional employer organizations (PEO) to oversee employee-related tasks.
A PEO will oversee the significant human resource responsibilities, which will help streamline HR in your business.
What is a PEO?
A PEO organization enters into a contract with your business, and undertakes the employee-related HR responsibilities, which include payroll and benefits. A PEO organization frees up valuable time, so that you can focus on running your business.
Here are seven benefits of working with a PEO company:
PEO organization’s job is to help provide your employees with access to cost-effective and comprehensive benefits without the overwhelming costs. The PEO can offer a wide variety of benefits to your employees through PEO-sponsored benefit plans, like medical, dental, and vision coverage. As a co-employer, the PEO handles the administrative tasks that include negotiating with insurance companies, enrolling employees, producing legal notice, and handling other administrative tasks.
A PEO organization can decrease your payroll-processing costs. The organization can automate the payroll process. You want to look for a PEO organization that can provide payroll services with a simple and straightforward fee.
PEOs have access to retirement savings programs. This is a benefit that can help with employee retention. A PEO handles the administration, and also provides educational materials that can help employees achieve better outcomes for retirement.
The laws for employment are always changing and are complex to navigate. Not being up to date on employment laws, rules, and regulations can cost your business. A PEO company is up to date and guides to help avoid costly.
Worker’s compensation can be costly and time consuming if dealing with insurance premiums and claims management. A PEO, as a co-employer, provides worker’s compensation, handles compliance, audits, paperwork, and certificates that are associated with running the insurance program. The PEO company will moderate risks and provide employees the answers that they need on time.
A PEO company shares the liability that is associated with specific employment-related claims, such as wrongful termination. Having a PEO as a resource, you can tap into the knowledge of multiple experts who can alleviate a costly settlement. A PEOs HR experience helps make sure agreements for terminations comply with all state laws.
Job positions open quickly and need a dast turnaround to find a qualified and knowledgeable employee. Most small or medium-sized businesses don’t necessarily have the tools, time, or budget to recruit strong candidates. A PEO should have additional services they can offer, that include assistance in recruitment, and the ability to provide access to professional recruiters who know your company’s employment needs.
Contraction, a PEO company, can help in relieving your business of many employment-related responsibilities and risks that can come with running your own business and hiring employees. By joining a PEO company, your employees will also have the opportunity for access to comprehensive benefit packages, online benefit information, enrollment tools, and help you attract top candidates to your business. You can find the top PEO companies on Retireat21.com.