Professional Employer Organizations (PEO) solves many problems that plague small and mid-sized businesses and their employees. Nearly every issue faced by your HR team can be dealt with by partnering with a PEO. The following are just a small sampling of the problems a PEO can help you solve.
Offering Competitive Employee Benefits
Employees consistently agree that a strong benefits package will be a determining factor for them as to whether they join a company, stay with their current employer, or seek employment elsewhere. Many small businesses struggle with offering competitive benefits because it can become cost-prohibitive.
With a PEO, you gain access to a plethora of negotiated benefits offerings. These include offering your employees a 401(k), IRA, and other retirement benefits. A PEO can also provide your team with excellent healthcare options at affordable costs to you. Through economies of scale, your PEO can negotiate better healthcare rates than you could on your own. This results in better health insurance options for your employees at a price you can afford.
Finding Affordable Workers' Compensation
Workers' compensation insurance coverage is required for nearly every employer. But it can be difficult to find affordable coverage, especially if you have not had coverage in the past.
Through a PEO, your business gets access to the PEO's workers' compensation plan which can result in lower premiums for your business. In fact, these premiums may be much lower than what you would pay on your own. Your business also saves on the up front deposit that most workers' compensation providers charge. The PEO pays this deposit on behalf of all of its clients so that your business only has to pay the monthly premium.
Reducing Workplace Liability
One goal of HR is to keep your business compliant and reduce your potential liability. There are countless ways your business is protected, including:
- Employee counseling
- Sexual harassment
- Workplace violence
- Supervisor and management specific training
- Employee handbook compliance and updates
- Policy compliance.
Through your PEO, experts can accomplish each of these items. You can have the peace of mind that your business is protected. You can also receive Employment Practices Liability Insurance (EPLI) to cover your business in the event something does go wrong.
Attracting Top Talent
Your business grows when you can attract and retain top talent in your industry. When you have employees who are loyal to your business, they will be more efficient and productive. When you have an attractive benefits package, you can recruit high quality talent in your industry and keep them engaged in your business over the long haul A strong benefits package is only one way you can attract the best talent in your industry.
Your in-house human resources staff no longer has to deal with administrative minutia, leaving them time to strengthen your company culture. Whether your team is in one office and spread around the globe, having a connection with your employees is important to keep them engaged with their team members and their work.
Lowering Employee Turnover
Turnover is expensive for any business. Not only does it cost money every time an employee leaves but it also hurts morale for those who remain. Reducing turnover can save your business money and headache. Companies who partner with a PEO experience 10-14% less turnover than businesses who do not use a PEO.
Offering competitive benefits will help to retain your employees. Your PEO can help turnover reduction in other ways, too. Through properly drafted job descriptions, you can help ensure that you hire the right person for the job the first time. Conducting background checks on all candidates who receive a job offer can help avoid making the wrong hire. Ensuring your employment agreements are strong and protect your business while remaining legally compliant is another benefit offered by a PEO that will help you reduce turnover and save your business money.
Processing and Filing Payroll Taxes
Processing payroll and filing payroll taxes are complex areas of HR that often cause mistakes and fines. Even when unintentional, failing to pay an employee the right amount or not properly filing payroll taxes where necessary, can cause serious economic issues for your business.
When you partner with a PEO, experts will file your payroll taxes for you. Your PEO is invested in making sure they get every detail right. Because the PEO files payroll taxes under their own Federal Employer Identification Number (FEIN), they will share in liability if mistakes are made.
Preventing HR Compliance Issues
HR compliance requires extreme attention to detail and constantly having a finger on the pulse of labor law proposals. With a PEO, experts in this arena will keep tabs on proposed legislation and recently passed laws that may impact your business.
Your PEO will help keep you compliant with ADA guidelines, I-9 completion, FLSA guidelines, quarterly tax filings, unemployment claims, and countless additional employment compliance benefits. Keeping your business compliant will help you retain company assets and not lose them to costly and unnecessary fines.
BCN Helps Your Business Succeed
With the right PEO partnership, your business can attract and retain top talent by offering high-quality benefits, all with cost savings to your company. BCN has over 130 ways in which we help your business succeed.