Managing administrative tasks can be a time-suck. Luckily, there’s a solution — a professional employer organization! Making the switch to a PEO frees up time for revenue-generating activities. By taking on HR, payroll, benefits, and other tedious (but necessary) tasks, outsourced HR frees up valuable time for you to focus on business growth. If you’re considering transitioning to an outsourced provider, let’s delve deeper into what you can expect.
Do Your Research!
First, it’s essential to understand what a PEO is and what services they provide. PEO companies can offer a comprehensive suite of HR services for small and medium-sized businesses to outsource. These service offerings may include payroll processing, employee benefits administration, workers’ compensation insurance, compliance — the list goes on.
The first step of switching to a PEO is research. Finding the right provider for your organization’s needs and goals is crucial. Evaluate companies by comparing your needs and budget with their costs, services offered, and reputation. Once you’ve selected a PEO, the onboarding process can begin.
Onboarding involves gathering information about your business and employees, setting up payroll, and transferring HR data and files to the PEO. This process can take a few weeks to a few months, depending on the complexity of your business and the services being provided.
Keep Your Eyes on the Prize(s)
The whole point of engaging a PEO is to benefit your business and support growth. Make sure you have your goals in mind as you evaluate your relationship with your outsourcing partner. Be cognizant of the following major goals.
Better Benefits for Employees
One of the biggest advantages of switching to a PEO is the ability to offer competitive employee benefits. Professional employer organizations have access to large group health insurance plans, which can yield cost savings for your business and better benefits for your employees. They can also manage the enrollment process, handle claims, and provide ongoing support for employees.
Support for Regulations and Compliance
Another advantage is the expertise and support provided by the PEO. HR regulations and compliance requirements can be complex and time-consuming to navigate. With a PEO, you have access to HR professionals who can provide guidance and ensure that your business is in compliance with all relevant laws and regulations.
Savings, Savings, Savings
Switching to a PEO can also provide cost savings for your business. By outsourcing HR and payroll tasks, you can reduce the need for in-house HR staff and related expenses. Additionally, PEOs can often negotiate better rates for insurance and other benefits due to their buying power.
Prepare for Smooth Sailing
Benefits can’t exist without challenges when outsourcing HR and other services to a professional employer organization. Luckily, most common concerns are unfounded, or they can be easily avoided if you’re prepared with the right information.
You’re Still the Boss
One concern for managers and leaders is the perceived loss of control over certain HR functions. In reality, teaming up with a PEO gives you more control over the important money-making aspects of your business. You get to delegate HR tasks to your provider and concentrate on expanding your business, while they manage the less interesting tasks. This gives you the freedom to innovate and generate more revenue.
Work Smarter, Not Harder
Another potential challenge is the need to adapt to new processes and procedures. Switching to a PEO requires a change in how HR tasks are managed, which can take some time to get used to. However, most service providers offer training and support to help with this transition.
Overall, switching to a PEO can be a positive step for your business. With access to expert HR guidance, competitive employee benefits, and cost savings, a PEO can help you streamline your HR functions and focus on what matters most – growing your business.
If you’re considering a PEO for your business, take the time to research different providers and evaluate their services to find the right fit for your business.