As a small business owner, chances are there aren’t enough hours in your day for – nor do you have the resources or expertise to effectively handle – the myriad tasks and responsibilities associated with HR. But you certainly can’t afford to let them slide, either.
For a growing number of people in the same boat, the right solution for keeping their companies and workforce on track is a partnership with a professional employer organization or PEO. Working with a PEO can relieve you of time-consuming and sometimes stressful HR duties, so you can focus on growing your business. It can also help you attract and retain top talent, ensure compliance with employment laws, achieve significant cost savings, and enhance your employer brand, so you remain competitive in the current tight labor market.
Here’s a closer look at some of the benefits that come with a PEO:
Benefits of a PEO Partnership
As reported by the National Association of Professional Employer Organizations (NAPEO), companies that enter into PEO agreements realize a resulting annual ROI of 27.2 percent, which equates to a cost savings of almost $2,000 per employee.
- Because PEOs manage hundreds of thousands of employees, they can offer access to higher quality benefits at lower cost to you and your employees. These include not only comprehensive healthcare options and retirement plans, but also dental and vision coverage, flexible and health savings accounts, and more.
Improved Talent Recruitment and Retention
In addition to competitive benefits, features like a streamlined hiring process and access to the latest HR technology – including self-serve and mobile options – are important to attracting desired candidates to your organization. Keeping them on board once hired is just as critical. The right PEO partner can help meet your company’s needs in this regard.
Even one mistake or shortfall in compliance with federal, state, or regional employment laws can result in a devastating cost to your company, both in terms of dollars and cents, and damage to your credibility, image, and reputation. PEOs have numerous HR subject matter experts on staff, including those who focus on compliance – from employee handbooks to the more intricate aspects of health insurance, unemployment, and other claims and management.
In addition to offering good benefits, you need the staff resources to administer them – whether this means handling open enrollment, responding to ongoing employee questions and concerns, or negotiating with providers. Here, too, your PEO can take the ball and run with it.
Your PEO can assume responsibility for processing and managing your payroll function, including all related taxes. You’ll no longer be penalized for inadvertently being late or missing a payment, or otherwise falling short of this ever-changing but always challenging area.
Looking for The PEO Partnership That is Right for You?
Key HR is aligned with a full spectrum of PEOs and other preferred provider companies, to help you stay current, competitive, and on track with all your talent management goals. Contact us today to learn more about the best partnership option for your company in the New Year and beyond.
- Posted by admin
- On December 7, 2022
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