Partnering with a professional employer organization (PEO) allows your business to outsource key HR functions such as benefits, payroll, recruiting and training. Having a PEO assist in handling these functions can provide you with competitive benefits, allowing you to optimize your business and take it to the next level. Here are some of the ways a PEO can give your business a competitive edge.
The competition of today’s talent market is pushing employers to offer more incentives to their employees without dramatically increasing costs. Job candidates pay attention to companies that provide benefits over ones that might not, which is why a PEO can help you stand out. Partnering with a PEO can provide benefits to your employees at a more affordable cost, such as employer-sponsored retirement plans and healthcare options.
It’s not always cost-effective for small and mid-sized businesses to administer benefits in-house. But by employing a PEO, you’ll have access to lower insurance costs because employees can be listed under the PEO’s federal ID number for payroll purposes. This allows for access to other benefits such as group insurance costs and worker’s compensation discounts.
A business should ensure their employees are safe, happy and productive while at work, and a PEO can help you manage that. Replacing an employee can be expensive, time-consuming, and disruptive to workflow. A PEO can handle HR functions that deal specifically with employee screening, training and hiring, as well as curating a policy handbook to ensure your company is protected. By providing competitive benefits and efficient service, a PEO can help you attract and retain talented candidates to reduce employee turnover rates for your business.
One of the more time consuming functions of in-house HR tasks can be payroll processing. It requires attention to detail, accuracy and compliance with tax regulations to ensure the correct amounts are being calculated. With a PEO, you’re able to completely outsource payroll processing to ensure employees are paid on time, offered appropriate benefits coverage, and everyt
hing is documented correctly. With a professional PEO, you’re hiring expertise, and they have working knowledge of the latest technology and integrated human resource management platforms so nothing gets lost or recorded incorrectly. By outsourcing payroll, you can free up time to focus on progressing your company.
Partnering with a PEO can help you stay on top of changing regulations and standards to avoid the risk of potential non-compliance. When state and federal regulations change, it affects payroll processing in that the amount taken out of employee checks needs to be updated. A PEO will help notify and educate employees on these changes as well to ensure there is no confusion or disruption to workflow.
A PEO can assist in staying on top of changes that can affect your business such as minimum wage regulations, safety/OSHA requirements, workers’ compensation and state unemployment insurance. Having assistance in managing these changes can reduce stress and bring peace of mind knowing that your business is following standards and is in compliance with federal and state regulations.
PEOs can add value to your business by providing employee benefits, handling HR functions, and ensuring compliance with state and federal regulations. With all of these functions being executed professionally and efficiently, your business can focus on growth and productivity. If you’re looking to better optimize your business and obtain a competitive advantage, then hiring a PEO might be the right option for you.