SIX reasons a PEO is your business's best asset ...
By: Carolyn Sokol
Regardless of what your business does, a Professional Employer Organization (PEO) can be a huge asset. A PEO provides professional services that allow business owners to focus on core aspects of growing their business instead of getting bogged down in administrative minutia.
Here are 6 reasons you should consider employing a PEO:
1. A PEO allows you to focus on your business.
Many business owners are simply unskilled at managing administrative duties such as payroll, human resources, regulatory compliance, employee benefit programs and risk management. Instead of spending countless hours tackling these “non-core” aspects, business owners can focus on what they do best – growing their business.
2. Business administration is more efficient.
A PEO offers clients a professional team of experts proficient in executing non-revenue-producing administrative tasks. Because of this higher efficiency, the fees paid to the PEO are justified by the savings realized and by the greater profits earned.
3. Can reduce costs.
A PEO can reduce the cost of doing business in several ways. For instance, by providing a single point-of-contact and managing all HR administrative duties, a company’s HR overhead can be trimmed. Also, costs associated with compliance of employment laws are reduced; and because clients have access to the PEO’s worker’s compensation programs, compensation costs can be greatly reduced as well.
4. PEO can help a company obtain lower insurance rates.
By pooling thousands of employees at hundreds of companies, a PEO can offer discounted medical insurance plans that the business owner can’t. This not only cuts the expense of employee benefits packages but also reduces turnover, recruiting and re-training expenses that frequently occur in smaller business that can’t offer the same incentives as larger, more established companies.
5. You keep control of all business operations.
Clients can employ the services of a PEO and still control all of their daily business operations, including those being handled by the PEO. Generally speaking, the PEO is there to focus on employment-related issues while the business owner is responsible for direct business operations.
6. PEO organizes all HR efforts.
PEOs provide a comprehensive collection of HR services that absorb employer-related liabilities and offer guidance and advice on HR issues. From recruitment and hiring, to payroll procedures and government compliance management, PEPs lift the HR responsibilities off your shoulders.
Many businesses cannot afford to spend much time or money dealing with the increasing responsibilities of HR management. Considering a PEO can help grow your business while attracting top professionals that will work toward your future success.