When you're starting a business, there are a lot of things to think about. This may include how to make remote work more efficient or which kinds of technology to use. One of the most important decisions you'll make is who will manage your payroll and HR functions. Many business owners choose to hire a Professional Employer Organization (PEO) to take care of these tasks. In this article, we'll discuss some of the benefits of doing precisely that.
What Is A PEO And What Does It Achieve?
A Professional Employer Organization is a company that provides comprehensive HR solutions for small to mid-sized businesses. A PEO can save your company time and money by handling all of the HR tasks that come with being an employer.
Some of the support that a PEO can provide include:
employee benefits administration
compliance with state and federal employment laws
It's Easy To Find A Good PEO
The internet can provide you with a wealth of information, making it easy to find customer reviews, company comparisons, and more. Most online PEO directories feature contact details so you can easily get in touch with them to ask questions or get more information. The businesses that look at this list of PEO companies demonstrate the need for advice on the top EOR and PEO providers in 2022. They want to access free guides to smarter outsourcing and find out how this affects companies in the long run.
You can get online quotes from multiple providers quickly and easily, which is a huge time saver. The internet can also help you find discounts and special offers from PEO providers, saving you even more money. Specialist websites also discuss things like offshore outsourcing, coronavirus, and BPO outsourcing.
It Can Reduce Your Costs
Running a business is all about making and saving money, and these factors can dictate whether you succeed or fail. Whilst many business decisions (including hiring a PEO) involve an initial financial investment, the key thing is to look at the long-term benefits.
The PEO industry is all about economies of scale. When you partner with a PEO, you gain access to their purchasing power and the ability to negotiate lower rates on behalf of their clients. This can result in significant cost savings for your company, especially when it comes to benefits like health insurance and workers' compensation insurance.
It Can Help You Comply With Employment Laws
Employment laws may vary depending on which state your business is located in. They're likely to include federal laws such as the Affordable Care Act, the Family and Medical Leave Act, and the Americans with Disabilities Act. Employment laws are constantly changing, so it can be difficult for small businesses to keep up with all the latest updates. If you fall short in any area, here are some of the possible consequences:
You could be sued by an employee
You could face hefty fines
Your business could be shut down
Your reputation could be damaged, which could forever reduce your revenue
PEOs can help you comply with wage and hour laws, including those governing overtime pay, minimum wage, and recordkeeping. In addition, PEOs can assist with unemployment insurance taxes and workers' compensation insurance. PEO companies can use their knowledge and expertise to ensure that your company's always compliant and up to date. This will give you peace of mind, knowing that your employees are being fully taken care of.
It Can Help With Health Insurance And Retirement Planning
Employee health insurance is a type of insurance that companies purchase for their staff. It helps to protect employees financially in the event that they become ill or injured and are unable to work. A PEO can help by providing access to group health insurance plans at a lower cost than if the company were to purchase them on its own. It can also assist with the day-to-day administrative aspects.
Retirement planning is the process of figuring out how much money you'll need to have saved up in order to cover your costs after you retire. It involves taking into account things like inflation, life expectancy, and the type of lifestyle you want to maintain. A PEO can help by providing access to retirement plans and investment options (including 401(k) plans and other retirement savings options) that may not be available to companies on their own. Once again, the PEO can help with the day-to-day running of these functions.
It Can Help With Employee Training And Development
This is when a company provides its employees with the resources and opportunities to improve their skill sets. These programs can help employees learn new skills or improve existing ones. They can also help employees stay current on the latest changes in their specific industry.
To achieve this, PEOs can help with things like classes, workshops, seminars, or even on-the-job training. They can also give access to discounted rates for these activities, and help to create employee development programs.
It Can Free Up Your Time
If you're like most small business owners, you wear a lot of hats and are constantly pulled in a million different directions. This can make it difficult to find the time to focus on things like reviewing your business plan or creating a marketing plan.
By working with a PEO it can free up your time so that you can focus on running your company. It can also release your colleagues to allocate their time and resources to other things. All the while you'll have the security that comes from knowing the HR function is being handled by competent experts. Because they'll be managing the paperwork, it won't be crowding out your office!
As you can see there are many reasons why a Professional Employer Organization can benefit your business. Whilst their services will cost you money it could be a great investment in your future success. You'll enjoy reduced expenses and increased efficiency, while your company continues to grow and expand.