You have lots to do. Your focus is constantly pulled in dozens of different directions. You need some help—just a little—someone to take some of the burdens off your shoulders.
Outsourcing your company's HR needs could be exactly what you need. With a Professional Employer Organization (PEO), you can expect that your HR needs will be handled accurately and in a timely manner. The PEO services provided to you will alleviate some of the burdens and help your company thrive.
Finding the right PEO doesn't have to be hard, but you need to be aware that most PEOs offer only a basic set of services. Only best-in-class PEOs provide businesses with a comprehensive suite of services from tax administration to recruiting assistance.
What is a PEO?
A PEO is an HR outsourcing provider that offers small and mid-sized businesses HR support. PEO services range from payroll and benefits to tax remittance and general HR administration.
However, only the best-in-class PEOs provide comprehensive support. They do this through a co-employment relationship with your business. Co-employment is a relationship between your company and a PEO where both companies share employment responsibilities for your employees. This does not take any day-to-day authority away from you but instead provides your PEO the ability to give your business cost-effective PEO services and benefits offerings.
What are PEO services?
PEO services are HR-focused duties and responsibilities that your company can outsource. This gives back valuable time and energy to you and your internal team.
Choosing the right PEO for your company means understanding your company's needs. For most businesses, getting more bang for your buck is essential. Best-in-class PEOs offer a more comprehensive suite of services without charging you anything extra. This provides you with substantial support at fair prices.
Which services should PEOs offer?
PEOs should offer their clients expert services in one comprehensive package. Best-in-class PEOs can, at a minimum, provide your company with these 9 services:
1. Payroll and Tax Administration
Your PEO should take the payroll burden off your internal team. Running payroll and ensuring absolute compliance with tax withholdings present challenges and difficulties. With expert payroll specialists at your PEO, they can take this burden off your shoulders.
2. Affordable Employee Benefits
A stellar benefits package helps your company attract and retain top talent in your industry. But for many small businesses, offering competitive benefits is cost-prohibitive. By partnering with a best-in-class PEO, your company gains access to the PEO's health benefits, retirement benefits, FSA, and HSA. Not only do your employees get what they want, but your company also gets these benefits at prices you can afford.
3. Benefits Administration
Administering all of these great benefits is not simple. It requires detailed information and adherence to regulations. Your PEO shoulders this responsibility by administering the health and retirement benefits for all of your employees. Because your PEO also manages your payroll, these benefit deductions are seamless.
4. Affordable Workers' Comp Coverage
Many small businesses have difficulty getting workers' compensation insurance at affordable rates. Depending on the industry in which your business operates, your workers' comp rates could be budget-busting. When you partner with a PEO, you may gain access to their workers' comp coverage, which may be much cheaper than what you could get on your own.
5. Workers' Comp Claims Administration
Getting affordable workers' comp coverage is just the start. When employees suffer on-the-job injuries, that creates additional headaches for your team as they deal with workers' comp administration. Responding to a claim requires time that your internal team just doesn't have. A PEO not only handles this but also proactively works to ensure each claim is valid, further reducing your overall workers' comp burden.
6. Safety Training
Part of keeping your workers' comp costs down is reducing the number of worker injuries. This happens, in part, from proper safety training. Many employers overlook the benefits of safety training, both for new hires and for tenured employees. By partnering with a PEO, you get an HR expert who can help you create a comprehensive training program to keep your employees safe and effective.
7. Unemployment Claims Management
Like with workers' compensation claims, unemployment claims require a timely response from your company. Your PEO will take on this responsibility, responding to all claims on your behalf. They will also investigate each claim to make sure it is legitimate and fight claims that are not. Your PEO will even appear in court on your behalf.
8. HR Compliance
Employment laws are constantly in flux. Keeping up with these changes and making operational changes internally to remain compliant is a full-time job. Your PEO handles this for you. HR compliance experts stay on top of ever-changing labor laws and help your business adjust when changes happen.
Finding the right person for the job takes time, and there's no guarantee that you will get it right. With a best-in-class PEO, they will provide you with recruiting services to help you hire top talent. From posting jobs to onboarding the person you select, they handle the mundane aspects of the hiring process so you can focus on your core business needs.
Finding the Right PEO
When looking to outsource your HR needs, you have options. But to maximize your ROI, you need to find a best-in-class PEO that offers you comprehensive HR support. By looking for the 9 services above, you can narrow down your options and find the right PEO for your business.