No business owner wants to waste time or money on routine HR administrative tasks, when those resources could be better invested in more critical strategic initiatives.
But, those tasks still need to be done. And, if any of them are poorly managed – in areas like compliance, taxes, or workers’ compensation, just to name a few – your company could land in deep financial or legal trouble.
The PEO Solution
So, other than adding another 24 hours to every day, what’s the answer?
An increasing number of businesses are learning that it lies in partnering with a professional employer organization, or PEO. The professional association of the growing PEO industry, NAPEO, recently conducted a study of 132 companies that worked with PEOs and 44 that did not. Among their findings: an average ROI of 27.2 percent in cost savings alone, for PEO-affiliated respondents.
- ROI (return on investment) is the net benefit of an investment divided by the cost of that investment. An ROI of 27.2 percent means that for every $1,000 spent on PEO services, a company saves $1,272, yielding a net benefit of $272.
In the same study, 98 percent of PEO clients said they would recommend a PEO to their business colleagues.
A PEO can function as your own off-site HR department.
This doesn’t mean replacing your current HR staff, if you have one. Rather, it means partnering with them and/or your company leadership to effectively, efficiently manage your talent management function. The advantages of a PEO relationship include:
- Better benefits and benefits management: Thanks to your co-employment arrangement, your PEO can tap into its group purchasing power when it comes to offering competitive employee benefits that would likely have otherwise been unaffordable for your company. And, PEO benefit specialists can handle related tasks ranging from ACA reporting and plan negotiations to open enrollment, premium reconciliations and payments, COBRA, HIPAA and ERISA assistance, and more.
- More robust risk management: PEOS also offer subject matter experts to address such areas as workers’ compensation coverage and procurement; safety planning and training; OSHA reporting; claims management; accident and fraud investigation, and liability insurance and worksite assessments.
- Accurate tax and payroll processing: Working with a PEO, you no longer need to worry about responsibility for direct deposits; checks and cash cards; FICA, FUTA and SUTA payments; W-2 and W-3 filings; time and attendance interface; new hire reporting; immigration verification; tax lien and garnishment processing, or HRIS and employee file maintenance and storage.
- Confidence that you’re hiring the right people: Your PEO can help you recruit quality candidates more effectively, manage the interview and selection process, and navigate onboarding so new hires quickly reach full productivity.
To learn more about the benefits of a PEO partnership, contact Key HR today. Based in Orlando, we’re aligned with preferred provider companies to offer innovative ways of meeting all your talent management needs while enabling you to save time, cut costs, raise revenue, and optimize your workforce.
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- On November 4, 2021
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