Are you running a small business but do not have sufficient time or expertise to manage the HR work? A professional employer organization would assist you in taking care of your HR functions, payroll, and compliance requirements to focus on other areas of your business.
PEO can help small businesses share the burden and lighten liabilities or expenses associated with the business. Let’s see how a PEO for small business can help in growth while managing the complexities of the organization.
Benefits of a PEO
Here are the top seven benefits of PEO for small businesses.
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Employee Benefits
Small businesses may struggle to provide competitive employee benefits due to lack of resources and knowledge. However, partnering with a PEO can resolve this issue and provide you with cost effective employee benefits. The PEO possesses the collective bargaining power to secure comprehensive benefits at competitive rates.
With multiple clients and employees, a PEO can negotiate lower costs for various types of coverage such as medical and life insurance. A PEO for small business can offer top tier benefits and assist with technology related aspects of employee benefits.
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Payroll
Paying your employees may seem straightforward, however, there are numerous laws and regulations that are constantly changing. This could lead to making payroll mistakes and it may harm your business reputation. By outsourcing these responsibilities to a PEO, it is easier to manage your company’s payroll. PEO also helps in handling payroll processing for clients and taking care of all required payroll taxes.
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Recruiting
A business’ employees are its most valuable assets and finding the right talent is crucial for the success of a business. Small businesses lack the time and resources to look for qualified employees. This is when a company can utilize a PEO for small businesses to craft compelling job descriptions that attract potential employees.
A PEO can assist in giving all-inclusive recruitment solutions to bring the best candidates to your business. It helps establish recruitment strategies in line with business objectives and provides support on how to source or attract the best candidates.
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Worker’s Compensation
Claims management and insurance premiums contribute to high cost and time. PEO offers workers’ compensation coverage to your employees using its own insurance program, offering potential savings in time and money for claims management and insurance premiums.
PEO for small businesses handles tasks such as audits, paperwork, and addressing employee inquiries about workplace incidents. They offer a specialized team of workers’ compensation experts who are well-versed in your business. PEOs assist in risk mitigation and provide affected employees with timely assistance.
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Retirement programs
PEO offers retirement savings programs that could enhance your employee retention. For small businesses it is beneficial to have a PEO that allows your employees to save for retirement and encourage long-term employee retention, thereby reducing turnover rates. PEO handles administrative duties and regulatory requirements of the retirement plan and supply educational resources to assist your employees in achieving better retirement outcomes.
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HR compliance
HR involves extensive compliance requirements, which can be burdensome for small businesses that cannot maintain large HR departments. HR compliance issues can negatively affect employee retention and can lead to increasing turnover costs. Failing to stay updated on the numerous regulations, HR laws, and rules can have significant financial consequences.
By outsourcing your HR work you can add a layer of protection to your business reducing the associated risks and time spent on maintaining HR compliance. Teaming up with a PEO for small business can offer substantial benefits, giving you access to reliable advisors keeping you informed about regulatory changes and making necessary adjustments.
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Legal support
A PEO can help your business deal with employment challenges and reduce legal costs. If you are unsure about the regulations or legality of a situation, a PEO can assist you in navigating that situation. PEO provides expertise in human resources and helps your business comply with state laws.
PEO offers HR specialists to address various payroll problems and regulations, and help you make important employment-related decisions. To save your business from lawsuits you can hire a PEO to help manage your employer liabilities carefully.
How do you select a PEO for your business?
- Small businesses have distinct objectives and needs and may require a PEO with experience working with similar companies. When choosing a PEO, look for a PEO that specializes in serving small businesses within your industry as HR aspects may differ across industries.
- Choosing a PEO for small business with experience in multiple regions can be helpful. While some HR aspects can be applied universally, local laws and regulations vary from state to state. As compliance issues are subject to local laws, it is better to seek a PEO with experience working in your key regions.
- A PEO’s potential is determined by the quality of customer service it provides. You should assess the customer service approach and quality of support a PEO offers. A potential PEO partner should have a high case resolution rate with experts providing prompt support.
- The PEO you are choosing should have a good track record and a strong history of success. You can assess the track record of the PEO by case studies, client testimonials and reviews. This will help in minimizing the risks and ensure a productive partnership.
Conclusion
Selecting a PEO for small business as your HR outsourcing partner saves you time and effort that you can put in other business aspects. From employee benefits to compliance solutions PEO offers personalized services to your business. However, it is important for small businesses to carefully consider specific criteria when selecting a PEO.