The Benefits of Hiring a PEO Company for Your Business
As one of the over 10 million employers in the U.S., you know the good and the bad of being in this position. You’re certainly making a big contribution to the economy because you’re creating employment. Being your own boss isn’t a shabby achievement either.
But then, being an employer is hard work. You have a lot on your plate at any given time, from recruiting and managing employees to staying on top of labor regulations and ensuring compliance.
But what if we told you a professional employer organization can make your work much easier?
It’s true. PEOs benefit businesses in multiple ways. Continue reading to learn the benefits of hiring a PEO.
Get the Recruitment Hassle Out of the Way
Hiring is one of your biggest responsibilities as an employer. You want to ensure your business is adequately staffed; otherwise, it won’t be as productive as it should be.
Recruiting the right people isn’t easy. From identifying the positions you need to fill to making job descriptions, running job ads, evaluating applications, and conducting interviews, the entire process can take several weeks and drain your energy.
A professional employer organization can take those responsibilities out of your hands. A PEO is a co-employer. They hire the people, but those people work in your firm. This means you’re more of a work-site employer.
Hiring a PEO means they’ll take over most of your recruitment tasks. Since the PEO specializes in human resource management, the company will have the workers you need. They’ll just need to send them to your work-site as needed.
That being said, you’re still responsible for the overall performance of the human capital in your firm. You still might be responsible for hiring for some positions, such as senior managers.
Maintain Compliance with Labor Regulations
There are federal, state, and local labor regulations that all businesses must adhere to. Failing to comply, whether intentionally or not, will see your business get slapped with hefty fines and other penalties.
Do you have the time to stay abreast of all the labor regulations? Never mind that these regulations are always changing.
When you hire a professional employer organization, you won’t need to worry about compliance. PEOs are very good at staying abreast of changes in labor regulations and maintaining compliance.
For example, if the laws regarding the minimum age of employment change, the PEO will ensure employees who no longer meet these requirements are put out of employment in accordance with the new law.
Save Money
As an employer, you’re also a business owner. And like all business owners, you want to reduce the cost of doing business.
Trying to save money isn’t a fun or easy thing to do, but it needs to be done. Costs spiraling out of control is a recipe for disaster.
There are several measures you can take to save money in your business, but hiring a professional employer organization will have the most significant impact.
If you look at your expenses list right now, you’ll say that the cost of labor is among the highest, if not the highest.
If you had your way, you could do away with half your workforce, which would then halve your labor expenses. But this isn’t how business works. Workers are the lifeblood of your organization.
There’s an effective way to lower your labor costs, though. You need to hire a PEO.
Considering that a PEO is technically a co-employer who handles things like payroll and record-keeping, you won’t need to keep an in-house team for doing that.
There’s also the issue of workers’ compensation insurance. As an employer, you’ve got a legal responsibility to purchase workers’ comp insurance and help process claims when they arise.
With a PEO on your team, workers’ comp will become a worry of the past. PEO workers comp effectively ensure that happens.
Access to Additional HR Services
You’re not done with workers after hiring them. There are additional tasks that will come your way, such as employee onboarding and training. These tasks cost money and will also take up a good chunk of your time.
Again, if you don’t want to do all that, a professional employer organization will come to your rescue. Being a co-employer, a PEO takes over most of the administrative HR tasks, including onboarding and training.
Plus, these additional HR services don’t just save your business time and money. They also help ensure you’re getting workers who are being continually trained.
Gain a Competitive Advantage
You’re in a competitive marketplace, which means you’ll do whatever it takes to stay ahead of your competitors.
Did you know hiring a professional employer organization gives your business a competitive advantage? All the benefits you reap from hiring a PEO come together to make your business more efficient.
With reduced costs and a well-trained workforce, for example, what’s there to stop you from conquering your industry? And if you’re lagging behind your competitors, there’s a good chance they are ahead because they’re already working with professional employer organizations.
Hire a Professional Employer Organization and Reap the Benefits
If you were on the fence about hiring a professional employer organization, it’s time to cross over. As we have demonstrated, a PEO will save your business money and make HR management a breeze. Overall, expect your business to become more competitive.
Explore our blog for more business tips and insights.