A Professional Employer Organization (PEO) provides a number of benefits that can help grow your business in the short- and long-term by actively managing the various HR responsibilities small and medium sized businesses must juggle.
Among other areas, PEOs can help with following:
Now that you’re up to up to speed on what a PEO does, let’s explore the practical advantages gained through outsourcing to a PEO and how partnering with one can help grow your business.
Your employees simultaneously represent your greatest asset and worst liability. Payroll, tax, and legal issues can rapidly swallow up a business’s resources if not handled reliably. Yet, business owners are often averse to managing these essential aspects of their company. The two most common reasons for this are lack of time and education. It can be tough to “run the shop” while staying up to date on the bureaucratic milieu of state and federal regulations. That’s where the PEO comes in. PEOs are experts in the HR field and continually educate themselves to stay up to date with HR industry developments. A partnered employment agency can shoulder the employee management workload, providing better representation for both you and your employees.
Paying another firm to manage aspects of your business might seem cost-prohibitive at first, but modern PEO’s ability to offer scalable solutions means you only have to pay for the services you need. Let’s say you’ve been handling payroll internally and have recently been flagged for a few regulatory violations. It may not make financial sense to outsource your entire payroll process to another firm, but having to pay more fines isn’t great for the wallet either. A PEO can provide regular reviews of your payroll processing to make sure you’re in compliance.
One of the best ways a PEO can help grow your business is through time saved. With another entity managing wages, compliance, advisement, insurance, etc. you can focus on efforts directly related to getting your company to the next level. Endless paperwork is replaced with clean digital interfaces, and offsite support is a phone call or a click away. This keeps distractions minimal so you can focus on maintaining a productive and engaging work environment for your employees.
A PEO is in many ways a silent partner for your business – it’s success and growth will mirror your own. Therefore, a good one should leave you feeling supported at all times, lowering the daily stressors that come with managing a growing business.
When shopping around for a PEO, look for firms that offer modular packages that will let you get custom-tailored support in the areas you need it most. This approach will let you leverage outsourced services as cost-effectively as possible.