Are you familiar with professional employer organizations (PEOs) and their growing presence working with small to mid-sized companies?
In a nutshell, PEOs and their clients enter a co-employment agreement, making the PEO the employer of choice while still allowing a business owner to retain control and oversight of their company and workforce. A PEO partnership can be extremely beneficial as it helps to effectively manage payroll and related taxes, compliance, employee benefits, safety and risk management, and other areas of talent management. It also relieves business leaders of time-consuming HR tasks, freeing them up to focus on strategic planning, customer service, and other key areas of business growth.
- The National Association of Professional Employer Organizations (NAPEO) offers all the resources you need to become well-versed in PEO partnerships.
Here’s a closer look at five ways a PEO partnership can help build your business success:
Five Ways a PEO Partnership Can Help Your Business Success
Get hours back in your day.
There are never enough hours in a day when it comes to running your own business. Your PEO team will relieve you of any or all HR administrative tasks, from negotiating and communicating with benefits providers and vendors to open enrollment and related employee communications, safety and training programs, and more.
Protect your company against risk.
The Internal Revenue Service (IRS) reports that 40 percent of small businesses are fined each year for payroll-related tax issues. And that’s just payroll. Compliance can be complicated, and laws and regulations are constantly in flux. PEOs provide staff experts in all areas of employment-related compliance and can handle all the related complexities and paperwork for you.
Enable you to offer highly competitive benefits.
PEOs pool employees from their various client companies, giving them group purchasing power when it comes to offering Fortune 500 level healthcare and other benefits critical to attracting and retaining top talent. So, you can use this leverage to effectively compete for desired candidates, despite the smaller size of your organization.
Provide coverage for start-up operations.
Many standard market carriers require at least three years of business experience to provide an insurance coverage quote. A PEO can relieve the burden – and potential higher cost – of having to secure coverage through an assigned risk pool. If your company’s geographic scope reaches to multiple states, this includes numerous state funds.
Help you achieve cost savings through hiring.
Your PEO will help you manage much or all of your employment-related paper and legwork, as well as provide the needed HR support to avoid costly hiring delays. Just a few examples of tasks your PEO can take on are resume reviews and pre-screenings, interview scheduling and follow-up, handling orientation and onboarding needs, and designing and implementing state-of-the-art training programs.
Ready to Consider PEO Partnership? Get In Touch
Key HR is aligned with PEOs and other preferred partner businesses to offer innovative ways to meet a company’s payroll, compliance, insurance, benefits, employee leasing and other HR needs. Our relationships with these partners can help you reduce costs, save time, optimize your workforce, build revenue, and minimize risk. Read our related posts or contact us today to learn more.
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- On August 4, 2021
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