You didn’t go into business because you enjoy spending valuable time handling HR tasks. Administrative work can be overwhelming and provides no tangible monetary returns to your company.
As the HR burdens on your businesses continue to grow, you may find that engaging a professional employer organization (PEO) will help you turn the tide. PEOs do more than just save time and headaches by handling employer responsibilities. They can also save you money.
The Power of PEOs
PEOs share the employer rights, responsibilities and risks of their client companies and workforces. By joining a larger group for health insurance bids, retirement plans and workers’ compensation, your company will likely be able to offer more extensive and less expensive benefits.
Bank on HR Outsourcing
By outsourcing all or a portion of your HR tasks to a PEO, you’ll save money in these seven areas:
- Medical Benefits - PEOs can help you save on medical costs while giving your employees access to better plans. This is made possible by aggregating small companies together and rolling them into a large nationwide package to gain competitive pricing on costly benefits.
- Payroll - Partnering with a PEO can decrease your employer payroll processing and related accounting costs. PEOs also conveniently automate the payroll process, and will handle your withholdings, W-2s and garnishments.
- Retirement Plans - Retirement plans encourage company loyalty by helping employees prepare for the future. PEOs help you establish retirement plans such as 401(k) to help with employee retention.
- Compliance - Not following the rules can be costly. There are hundreds of state and federal agencies that have the power to fine you if you don’t comply with their laws. PEOs help you stay in compliance with guidance from seasoned HR professionals.
- Workers’ Compensation - Through a PEO’s national buying power, your company will be able to secure the same competitive workers’ compensation rates as larger corporations. PEOs also handle the compliance, audits, paperwork and certifications associated with running a workers’ compensation program.
- Lawsuits - A single lawsuit can devastate your business, and keeping your employer liabilities in check is key. A PEO can assume or share the burdens of potentially hazardous issues, such as terminations and unemployment claims.
- Recruiting - PEO recruiters are experienced in identifying and selecting the ideal candidate the first time. When you consider the time and money spent placing job ads, conducting interviews, background checks and more, hiring the wrong person can turn into a costly error.
HR outsourcing can afford your business savings in many areas, including time, energy and best of all—money. Have you had success working with a PEO? We’d love to hear about it in the comments section below.