8 Ways a PEO Company Help Your Business Grow
Any small or medium-sized business owner knows that owning a business comes along with lots of administration and human resources paperwork. Dealing with these tasks can take up more time than you have in a day, letting essential things, such as focusing on operating and growing your business sit on the back burner.
Managing employees, HR responsibilities, and staying up to date on compliance take away from business owners’ main priorities of building a successful business. Luckily, some services can help small or midsized companies by outsourcing HR-related tasks, called a PEO.
A PEO company, a professional employer organization, helps small businesses by outsourcing services, such as human resources, workers’ compensation, benefits, and payroll. PEO companies help businesses through a co-employer agreement. A co-employment agreement has your business and the PEO sharing responsibility and liability. You, as the business owner, oversee the day to day operations and assigning tasks to employees. Professional employer organizations become the employer of record and manage HR-related services and administration related to employees, such as workforce management, consulting safety and risk mitigation, and training development.
Professional employer organizations enter a co-employment partnership with your business, which means your employees have two employers. You, as the small business owner, oversees the day to day functions and assigning tasks, and the PEO company looks after HR-related services, such as managing payroll services, human resource tasks, providing access to benefits, and other employee-related tasks that are needed.
The best PEO services will help small or midsized businesses run smoothly in HR, payroll, benefits, and recruiting. All these tasks can be overseen by the professional employer organization and are vital for a company to grow.
Below are eight more ways a PEO company can help your business grow:
1. Regulatory Compliance
Staying up to date on the continually changing landscape of compliance can cause headaches. HR compliance can use up a lot of a business owner’s time with tedious paperwork. Not to mention one small mistake in this area can mean being penalized with a costly fine, or hit with a lawsuit. For a small business, this could be the end of their bottom line. A professional employer organization takes the burden of HR compliance off of the business owners’ shoulders. Professional employer organizations can keep their business in accordance. They have HR specialists that are up to date on all procedures and know the forms that are necessary for filing.
2. Employee Management
Supporting a group of employees takes more time than just emailing staff or acknowledging holidays. There are employee training, evaluations, meetings, and reviews. All these tasks are essential to building a productive and loyal workforce. Managing employees can quickly fill up a business owner’s or manager’s calendar. A PEO company helps with employee management and reduces employee turnover. Professional employer organizations have strategies to help with employee training and evaluating employee’s performances. With the task of managing employees taken care of, you can focus on growing your business.
3. Payroll Administration
Partnering with a PEO company helps with other HR tasks, such as payroll. Payroll can be a tedious job because one error and you have upset employees. Payroll procedures need to be done correctly to avoid mistakes in tax withholding, deductions, and direct deposit. PEO companies can help reduce your payroll processing and accounting expenses. PEO companies can automate your business payroll process so that it runs more efficiently.
A professional employer organization can connect clients to comprehensive benefit plans. Through your partnership with the PEO company, employees come part of a larger health insurance group that accesses cost-effective health benefits. Along with health benefits, a PEO company can provide additional perks to employees, for example, access to 401 (k) retirement plans and discounted gym memberships.
5. Saves Time
PEO companies provide your small or midsize business HR expertise. Having HR and payroll administration tasks looked after frees up valuable time for you, the business owner, to focus on what is essential to growing your business. Partnering with a professional employer organization gives you the flexibility to focus on growing your business and building happy employees.
6. Increase Employee Productivity
Partnering with a PEO company brings lots of benefits. These benefits help with creating a thriving work environment with happy employees. Also, by freeing up your time from tedious tasks, you can spend more time training employees, and working on growing your small or
The job market is very competitive, with job postings opening and filling very quickly. A small or medium-sized business won’t necessarily have the resources to be competitive in the jobs market and attract top talent. Partnering with a PEO company gives your business access to recruiting services, and help with creating job ads, interviewing background checks, and negotiating contracts. Hiring with a PEO company gives you the confidence and edge to attract great candidates to fill your positions.
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8. Employee Happiness
Through a professional employer organization, your business can access comprehensive benefits, learning resources, and professionally develop programs that all help employees better themselves. Along with benefits, the PEO company installs easily to use technology that employees can sue for tracking ays off and vacations. All of these items lead to boosting employees’ morale. Happy employees typically stay with the company that they are working. Having happy employees reduces employee turnover and keeps a friend’s work environment, which all contributes to an increasing workflow.
A PEO company can help your business grow. Professional employer organizations exist to offer HR solutions and administrative services to your businesses. They can ease stress and worry from dealing with regulations, payroll errors, and performance reviews. With a professional employer organization handling your worries, you can focus your time and energy on building a successful business and creating a better workplace for employees. Through the help of a professional employer company, you can focus on your expertise and delivering your products or services to customers.