As your company grows and you continue to adapt to an ever-changing business landscape, have you been thinking about partnering with a professional employer organization (PEO) – but you’re not quite convinced that’s the way to go?
That’s completely understandable. It’s your business, after all.
Like so many of the decisions you make, it’s an important one. It will help if you take a closer look at some of the common myths around PEO relationships – and why you can rest assured that that’s all they are: myths. Here are five common ones:
The 5 Most Common PEO Myths Holding Business Owners Back
I’ll lose control of my business if a PEO takes over.
A PEO doesn’t “take over.” You enter into a co-employment relationship whereby your PEO handles HR administrative functions, provides benefits that wouldn’t otherwise be affordable for you, and takes a significant chunk of the risk and liability off your plate. You retain control of your business and its day-to-day operations. This means you can focus your time and energy on revenue-generating planning and projects.
I’ll have to let my HR staff go.
Nope. Because your PEO has relieved them of so many time-consuming yet necessary administrative tasks, your talent management professionals can concentrate on the most business-critical tasks for which they were hired – including strategic planning, development, and interacting with prospective and current employees.
- Do you need stronger job descriptions or an improved employee handbook? Your existing HR pros can team up with PEO staffers – and the PEO will handle all the busy work on this and similar projects.
- A PEO enhances – not replaces – your HR department. PEOs work with myriad companies and industries. So, they bring all those best practices to the table, adding additional strength and knowledge to your existing team.
- What if one of your key HR players is unavailable due to sick leave, vacation, or another circumstance? No worries. Your PEO team is ready to step in and cover for them.
I won’t have employees any more.
Yes, you will. Granted, you’re sharing them in a sense with your PEO. But you still have the final word when it comes to hiring, promoting, job change, and firing decisions.
- A PEO is not a staffing company. You continue to employee your team members, along with your PEO business partner.
I’ll have to give up my HR decision-making authority.
As you make key HR decisions, you can rest assured that they’re the right ones, as you tap into the specialized expertise of your PEO. This rings true when it comes to sourcing, screening, narrowing down and hiring candidates, progressive discipline as needed, and other aspects of ongoing talent management.
My employees aren’t going to like this change.
The exact opposite is most likely true. When you work with a PEO, your employees get access to Fortune 500 level benefits, regardless of the size of your business. Plus, they can easily reach subject matter experts to answer all their employment-related questions. From hiring and onboarding to retirement planning and implementation, your PEO is your partner – there to enhance and continue growing your company.
Do you need to know more or have additional questions on PEO partnerships? If so, contact the Key HR team today.
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- On May 19, 2021
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