Are you looking at the possibility of working with a professional employer organization (PEO)?
For many companies, the idea of hiring a PEO company may seem like an action that requires much consideration. When you go through the option of taking on a company to handle your employment services, you may find yourself with more questions than answers.
How exactly do PEO companies work? How do they go beyond payroll services to help you? What are some of the key benefits of using a PEO company?
If you’ve been asking yourself these questions, keep reading. We’ll go into all of the benefits of working with a PEO company below!
What Is a PEO Company?
First, we need to define the term “PEO company.” So, what is a PEO company?
Put simply, PEO companies serve as employers for their clients, providing many employment services, such as payroll services and managing sick and vacation time. When working with a PEO company, businesses generally enter an agreement that leases their employees to the third-party business.
Then, the PEO company manages details related to HR. Many organizations find this helpful, especially if they are small and don’t have the financial bandwidth to hire a full team of human resources managers and accountants to handle payroll.
They Go Beyond Payroll
If you just think a PEO company manages your payroll, think again. For many businesses, their services go far beyond simply putting paychecks in the pockets of your employees.
Instead, they take a large part of the administrative portion of your company off your plate. For example, if you run a bakery and have a job opening for a pastry chef, the PEO company will take it upon themselves to write the job posting, review resumes, and handle the entire hiring procedure.
Since the PEO company specializes in doing this and becomes familiar with your organization through working with you, they know how to hire top-qualified candidates. This ensures you will get the best pastry chef available.
In addition, they take care of managing your health insurance plans and other benefits for you. So, if the thought of paging through tons of plan options doesn’t sound like the best (or even most exciting) use of your time, consider hiring a PEO company and delegating that task to them.
The top PEO companies also help their clients handle internal disputes. For instance, if there’s been a misconduct claim, the PEO company will share liability with you, and they’ll help you go about managing it. This takes a large burden off of your shoulders.
Free Yourself to Focus on What You Do Best
Let’s face it: not many people start a company and envision themselves spending all day figuring out payroll and other HR logistics (unless, of course, you’ve started a PEO, payroll leads, or payroll services company). You know you need to pay your employees and give them benefits to keep them motivated to work and stay on with your business.
If they don’t have these perks, you might find many of them looking for work, giving your organization one of high turnover.
Yet, few business founders want to spend their whole day doing payroll or HR work. This is especially true because most don’t have the time for it. They need to lead their businesses and focus on pushing the company forward, not on working on compensation, benefits, etc.
Likewise, managers often find themselves too busy trying to work on their team and making sure that they deliver on their deadlines and commitments. They don’t have the time in their day to do the work PEO service companies provide.
Sure, you could hire other full-time employees to take care of these needs. Yet, that takes a lot of time, and even if you do, you might struggle to find the right person.
A PEO company, on the other hand, already had trained professionals on staff. They are able to provide your payroll and HR needs, freeing you up to focus on what you do best.
Whether you manage a team or enjoy being the face of your company, PEO services let you do just that.
Affordable Employee Benefits
Most employers pay a lot for employee benefits. Even if they get group discounts on health, dental, life, and vision insurance policies, they end up spending thousands each month in paying for these services.
Yet, full-time employees have come to expect benefits, and many of the best talents seek them out when they look for jobs.
So, if you want to attract the best workers, you should consider offering benefits. But how do you make them affordable?
That’s where PEO companies come in. They often offer benefits for a lower price. That means your employees can receive medical and dental coverage, retirement plan contributions, etc., at a discounted price for you!
They Help You Manage Worker Injury Claims
Have you ever had an employee injured on the job?
If not, consider yourself lucky. In 2020, there were 7 million work-related injuries, at which point the employer becomes liable for covering recovery treatment for their employee. Should the injury have been severe enough, the charges might be exorbitant.
PEO companies help you throughout this entire process. They help ensure the employee seeks treatment from a preferred provider, keep track of whether or not the claim was submitted on time, and advocate for you as the claim is managed. They will also help you arrange return-to-work programs.
That way, you don’t have to navigate an injury claim alone.
Are You Ready to Hire a PEO Company?
So, are you ready to hire a PEO company?
PEO companies often serve many businesses well. They help them with payroll, HR services, benefits’ cost, and claims, among other things. They also free business owners and managers to focus on the tasks they have in front of them, taking a whole host of responsibilities off of their to-do lists.
Are you ready to get a payroll processing company and HR management help? Contact us today!