For small to medium businesses, the challenges of orchestrating a divine human resource department is a common occurrence. Depending on how much personnel you employ, it can become a nuisance to provide everyone with adequate health benefits, onboarding practices, and retirement plans. That’s why many small to medium businesses hire a PEO to overtake their HR department. Here’s how a PEO changes the hiring game for small to medium businesses.
A professional employer organization, or better known as PEO, is a third-party outsourcing service available for small to medium businesses. PEOs take on the duties of your HR department including benefits, hiring, and administrative services. Many businesses rely on PEOs to alleviate the timely tasks of their Human Resources department. Just think- all the time your employees are using to complete HR tasks could be directed towards focusing on the bigger picture at hand and developing a long-term strategy for your business. A PEO gives your organization more time to work on the important tasks that will grow your underlying business and strengthen your company culture.
When you decide to hire a PEO to handle your HR services, your organization is included into a larger benefits package that covers all the clients of the PEO. Larger organizations like PEOs can access better benefit packages than small businesses because of the number of personnel they employ. With a larger pool of employees, the benefits you’re able to offer will vastly improve without having to break the bank. Offering excellent benefits to everyone in your organization gives new hires an incentive to apply. If you want to attract the best talent in the aggressive hiring market, your organization will have to offer competitive benefits.
Having a PEO changes the hiring game for your organization by allowing you to retain your best employees for longer. Your HR department can offer better benefits and emotional support when you outsource it to a PEO. The trained professionals that are overseeing your HR are capable of handling emotional situations as they are self-aware and have prior experience working with a range of organizations. Your employees will notice the improvement in your HR department and will be inclined to stay with your company for longer.
It’s no surprise that the professionals working for your PEO are better at recruiting and hiring; they are experts in finding talent in a competitive job field. PEO’s can assist with interviewing, hiring, training, and holding reviews for employees. In a recent study, it was found that organizations with a positive onboarding process experience 62% greater new hire productivity. PEO’s consider the organizational, technical, and social aspects of onboarding a new hire, establishing a firm foundation for new employees. When you invest into your onboarding and hiring process, it will be shown in your new hire’s output and overall retention.
In the long run, relying on a PEO for your administrative processes will save you money, giving you the opportunity to invest more capital back into your business. Hiring a PEO means your employees will no longer be using company time to complete lengthy tasks like payroll and recruitment. Tasks like such drain company time and resources, which could be avoided by relying on a PEO. Not only does PEO services save you money, you also have time to think about your business from its core and create a strategy moving forward. The more time you focus on internal processes, the more you can grow your business; saving you time and money in the long-run.