Leading a business from its humble beginnings to the level of dreamy success one typically envisions when first starting out is certainly no easy task. With so many moving parts involved, managing the complexities of a growing organization will put your intellectual strengths and leadership skills to the ultimate test. One of the best ways to tilt the odds of success in your favor, however, is to partner with a Professional Employer Organization, or PEO. Doing so will boost your core business by granting access to important services and products that would otherwise be unattainable to the majority of small or medium-sized businesses.
A PEO will typically provide comprehensive human resources-related services (HR), including payroll and administration, assistance with hiring and training, employee benefits and rewards packages, insurance policies to protect your organization, as well as help with state and federal compliance issues. In some cases, you can even purchase a PEO’s services à la carte; for instance, if your business already has a confident HR department that you’d prefer not to have completely replaced but that could still be benefited by the additional services provided by the PEO relationship. Either way, by hiring a PEO, you can count on your organization being served by a body of experienced HR professionals that is genuinely vested in the success of your growing organization.
One of the main reasons that outsourcing your HR department can be so effective—and even affordable—is due to the economy of scale that PEOs operate on. For example, a PEO will purchase benefits packages (health insurance, rewards, 401(k) plans, etc.) in bulk in order to later distribute them to their clients, which effectively allows a small business to gain access to higher-quality plans that are normally only accessible to larger corporations. This, in turn, creates an enormous advantage in a company’s ability to attract and retain top talent, which is undoubtedly one of the key components to ensuring a successful future for any expanding organization.
On the legal front, a PEO can be tremendous asset by helping with employment-related regulatory compliance (ADA, OSHA, etc.) as well as employee claims (workers’ comp, discrimination cases, etc.). Having to handle a claim often comes as a surprise to an employer and can unfortunately result in substantial financial damages. The protection and assistance offered by a PEO, however, can create a peaceful state of mind for you and your organization, knowing that your company is prepared to handle any legal challenges that may arise on a local, state, or federal level. A PEO can even ensure that something as basic as the employee handbook and training materials remain up to date with the ever-changing laws and regulations. Knowing that your PEO has got your proverbial back, so to speak, is just one of the many benefits of this type of partnership.
From managing payroll and benefits, personnel data, and worker training to mitigating the many risks associated with running a business, there is little in the way of HR that a PEO is not capable of doing. By partnering with a PEO, your organization will be able to adopt some of the most beneficial and desirable products and services normally reserved for much larger companies. Furthermore, the added efficiency achieved by hiring a PEO will greatly streamline all things HR-related, which, aside from helping your company to run more seamlessly, will also likely save your business a substantial amount of money over the long term. This allows your growing organization to remain more focused on its core functions while simultaneously expanding its offerings, attracting better talent, and remaining competitive in the business landscape of the new decade.