PEO services are every small business’ secret tool to success. PEO or “Professional Employer Organization” is a company that manages all of your HR, payroll and employee benefit needs. Learning what peo companies do is the first step into making life much easier for you and your employees! Here is everything you need to know about PEO services.
- PEO Service = Co Employment
When you sign a contract with a PEO service, you aren’t signing your life over to a staffing agency. You enter into a co employment relationship. Meaning, your companies’ employees also become the PEO’s employees. This allows the PEO service to group together many small companies’ employees together into one pool to get better rates on things like health insurance, state unemployment and workers compensation.
A common misunderstanding with PEO services is that people think entering a co-employment contract will make them lose control over their business. But, co-employment doesn’t mean your business will be taken over, it just simply means you have another business, working along side of your business. When you think about it that way, it isn’t so scary. Plus, the PEO service handles all of the things you would normally spend hours doing paperwork on. So now, you can spend that time you would of spent on insurance negotiations and HR administration coming up with new ideas and visions for your business! Sit back and relax, while the PEO service handles the background stuff, so you can put your energy towards the core of the business.
- Keeps Your HR Administrative Responsibilities at a Minimum
Working with a PEO service doesn’t mean you have to fire your HR staff. In fact, think of a PEO service as just added support. Not many HR professionals enjoy the long, drawn out hours of administrative work. They would rather be working on things like creating a positive work environment, focusing on increasing productivity, and taking on other projects that never flourished because there was too much paperwork on the desk to even think about a new project. A PEO service will take care of the heavy lifting, so your HR team can get their head above water and begin making strides to taking your company to the next level!
Having a PEO service means you just have extra HR support, whenever you need it. This comes in handy during complicated HR issues, or during a downsize or expansion of your business. They will work hand in hand with your HR team to get the problems solved, and have things running as smoothly as possible in the midst of chaos!
- PEO Services Are Affordable
It is hard to imagine that one company can offer expertise in human resources, payroll, benefit administration, tax management and HR compliance without completely emptying your wallet. It might make more sense to you to spend the 10+ hours a week performing all of these tasks yourself and saving the money. But, I can assure you that PEO services are they affordable, and certainly worth every penny you spend. Not just for you, but for your employees too! PEO services provide access to affordable insurance and retirement plans. You will be saving money for yourself, and your company. By handing over the 10+ hours of work over to PEO services, you will instantly increase your productivity in the workplace, which naturally means an increase of revenue on the horizon. PEO services are bound to create the foundation for long term success within your company!
- PEO Services Offer Additional Services
Not all PEO services provide the same additional services. But, along with HR compliance, payroll, tax management and benefit administration, most PEO services will also include things like providing risk and safety consultants to manage your workplace, recruit employees through resume screening, evaluate performances to reward employees, and provide assistance to downsized employees during their search for a new job. One of the greatest things that PEO services can offer is their training services. Even sometimes offered at a discounted rate, you will have access to all types of training programs such as computer skills and proper workplace etiquette!
- The Benefits Outweigh The Risks
It’s no secret that partnering up with another company can come with added risks. PEO services handle very important tasks within your business, so it is important that you do proper investigating when it comes to finding the right PEO service for you. A great place to start your search is through NAPEO’s website, where you search PEO services by state and find closest to you!
A lot of people worry that they are putting their business at risk when signing on with a PEO service. They are worried their employees will be dissatisfied with the insurance and benefits changes, the culture of the workplace will be ruined, or that tax season will be a mess. But, in reality – none of your employees will leave because you entered a PEO relationship. Instead, they will quickly realize after doing less busy work and having access to better benefits that a PEO service was what the company needed all along! Plus, PEOs never get involved with the day to day operations of your workplace. PEOs are there to relieve the heavy workload, enhance employee satisfaction and create an efficient and productive work environment.
In the end, PEO services are an affordable and efficient tool, there to help your business grow in a positive and professional way. No matter how small your company is, your employees will have access to amazing benefits, retirement plans, and health insurance. You and your employees will never have to worry about scheduling in time to do boring administration work, and instead you can sit back and let the PEO experts handle the heavy lifting!