Businesses are slowly beginning to see the value of professional employer organizations (PEOs). According to the National Association of Professional Employer Organizations, approximately 175,000 small to medium-sized businesses (SMBs) and 3.7 million people take advantage of PEO arrangements.
Hiring a PEO offers many benefits, including:
Improving Efficiencies. HR tasks can be labor-intensive and time-consuming, especially if you’re not well-versed in HR policies and procedures. Though they are outsourced, PEOs are experts and know the ins and outs of day-to-day business operations and long-term HR responsibilities. When you allow a PEO to manage your HR tasks, you can focus on what’s important – running and growing your business.
Cost Savings. PEOs equip you with an entire HR department without having to hire a single HR employee. They tackle the full range of HR responsibilities efficiently and effectively, cutting down on the costs associated with hiring and training new employees and HR management.
Expansive Benefit Plans. PEOs can offer your employees high-quality, affordable benefit plans. Because PEOs are the legal employer of all clients’ employees, they are eligible for insurance and employee benefit plans that most SMBs couldn’t otherwise afford. This allows you to offer premium benefits, which will help you attract qualified candidates and increase employee retention.
Industry Expert Support. They have experience with all aspects of HR across industries, including education, hospitality, professional services, healthcare, and nonprofit organizations. PEOs provide the capabilities of a veteran HR department that can effectively handle any issue. PEOs also assist your company remain in compliance with complex and constantly changing laws and regulations at local, state, and federal levels. Instead of spending your valuable time and energy trying to understand and keep up, leave it to your PEO to ensure your company maintains compliance.
Reduced Liability. PEOs reduce your risks and liabilities by taking a proactive approach to preventing lawsuits and claims. If your company happens to face a claim, your PEO can effectively manage the situation on your behalf.
If you’re overwhelmed and distracted by HR responsibilities, you should consider hiring a PEO. PEOs offer business owners an expert HR solution that not only saves time and money, but also adds value by providing innovative solutions for all payroll, employee benefit, HR, employee management, and tax compliance issues.