Some companies only have access to limited resources and every expense has to be carefully tracked. A lack of resources can make fully staffing all the departments your business needs difficult. This also includes HR departments. A PEO or professional employer organization can help with employee benefits management by streamlining your company’s procedures and filling the vital role of HR assistance. Here is more information on what a PEO does and some of the benefits hiring a PEO brings to your company.
What a PEO Is
A PEO is a company that provides HR services for other companies. Their tasks include payroll, benefits, workers’ comp, and other HR services. By outsourcing your HR services to outside experts, you have the assurance the job is done correctly and access to HR services that you can afford without sacrificing quality.
Many different types of companies use these services, with small campaigns often benefiting the most as a PEO provides levels of care a smaller business may not be able to afford. Plus, with HR needs outsourced, you can focus on other vital tasks.
Eight PEO Benefits
- Support: the knowledge and advice a PEO can also assist with other important tasks in your business. The expertise a PEO provides can assist you in creating new training materials, improve your onboarding process, and help optimize your hiring process.
- Manage Worker’s Compensation: PEOs can assist in workers’ compensation and contact insurance companies. They also handle related tasks such as paperwork, auditing, and general outreach. PEOs also have experts on staff who understand compensation needs and how to best approach them.
- Payroll: a common task managed by PEOs is your company’s payroll. This includes ensuring your employees are paid and that sick days, vacation, and tax withholdings are properly calculated.
- Recruiting New Employees: finding the best candidate for the job is often challenging. A PEO can improve your recruiting process by training your staff on the best hiring techniques and how to hire the best people for your employment openings. In addition, a PEO can widen your employee search through the use of networking and job boards, increasing the number of qualified applicants applying to your company.
- Support Your Employees: a PEO supports your employees in several key areas. They can assist with enrollment for benefits, answer questions, and also provide contact information to allow your employees to reach out when they have problems.
- Manage Legal Issues: in business, legal matters are a common concern as employees and employers do not always agree on certain issues. Common legal concerns include payroll issues, paid time off disagreements, and other compensation-related matters. A PEO can help manage these situations and also protect your company by ensuring your policies are legal.
- Regulations: HR duties and tasks involve a lot of regulations as it relates to the hiring and management of employees. PEOs, due to their many years of HR work, understand what these regulations entail and stay up-to-date on any changes to regulations and laws in your industry.
- Help Your Company Grow: outsourcing your HR needs to a PEO can help your company grow larger by allowing you to focus on other mission-critical tasks. With your HR needs well-managed, you can focus on developing and growing your company.
Human resources is a vital department in every company. However, you may not have the resources needed to establish a fully featured HR department or hire the best people for the job. By reaching out to and working with a professional employer organization, you gain access to industry experts and resources to meet your HR needs and your employees’ support.