A Professional Employer Organization (PEO) offers your business many benefits and cost-savings. Part of this comes from outsourcing some of your HR tasks to your PEO.
A common misconception is that PEOs will replace your HR team.
The opposite is true.
A PEO serves to complement your existing HR team by handling mundane administrative tasks. PEOs provide support to your internal HR team, making them more efficient. This allows you and your staff to focus on core business priorities. The following provides insight into the different ways a PEO can complement your existing HR team.
Employment laws are complex, difficult to interpret, and constantly changing. Without an expert reviewing these laws and recommending appropriate changes, your business could end up facing serious fines or lawsuits.
With a PEO partnership, you get access to HR experts who can provide your internal team with the support they need to make the best decisions.
As your HR team’s consultant, your PEO will provide strategic and tactical advice regarding hiring, compensation, separation, and performance management. Your PEO will provide guidance on the most recent updates to the FLSA, ADA, FMLA, as well as dozens of other Federal and state regulations.
As your HR team’s consultant, your PEO can assist your HR team on-site when complex issues and disputes arise.
For example, if you have an EEOC issue, your PEO can send an expert representative to your office to help you navigate this situation. Through this partnership, your internal team gets the support they need, and your business reaps the benefits of remaining compliant and out of legal trouble.
Besides compliance and regulation issues, your PEO will take on a host of other mundane administrative tasks that your internal HR team will be happy to shed. These includes:
- Job description writing
- Offer letter creation
- Employment agreements
- I-9 compliance
- W-4 administration
- Payroll administration
- Tax withholding
- Retirement and benefits administration
- Handbook review
- Compensation plans
This list provides just a small sampling of tasks your PEO will handle for you, allowing your internal HR team to focus on bigger company goals.
Your PEO will handle your payroll processing. This task takes a great deal of time and focus. Shifting this burden to your PEO allows your internal HR team to focus on your core business needs.
Your PEO will provide you with direct deposit services, tax reporting, PTO management, and a fully web-based payroll system. Using dedicated payroll experts, you will feel confident that your payroll will be processed each time, error-free.
Employees consistently report they will accept or decline job offerings based partly on an employer's benefits package. However, for many small and mid-sized businesses, offering benefits can be cost-prohibitive.
Through a PEO, your company can provide Fortune 500 level benefits at Fortune 500 level prices. Your PEO will handle all negotiations with benefits providers, manage the enrollment process for your employees, handle the benefits administration, and support your employees to choose what benefits are best for them.
A PEO partnership allows your business to provide large-scale benefits to your team. In turn, this creates loyalty in your employees, which helps your business attract and retain top-talent in your industry.
Your PEO can also provide you with best-in-class HR technology. This helps by streamlining your software, keeping all of your relevant HR information in one secure location.
Through HR software, you can post jobs, review applicants, provide electronic time tracking, process payroll, onboard new hires, and manage open enrollment for your benefits. Your business can access all of its operational needs in one spot. Your employees can access all of their personal information, review their benefits, and access their electronic paystubs.
Make Your Business an Employer of Choice
When your internal HR team no longer has to deal with the administrative burdens, they can focus their efforts on making your company an employer of choice. Your PEO will assume the complex and mundane HR tasks freeing up your internal HR team to focus on adding value to the company instead of just handling paperwork.
By staying compliant with employment laws, offering your employees best-in-class benefits, and taking administrative burdens off your internal HR team, your business can thrive. Partnering with the right PEO can make your company an employer of choice that top-notch employees flock to in droves.