Want to grow your business but not sure what steps to take? If so, a Professional Employer Organization (POE) may be the answer.
SummaryCost SavingsComplianceRecruitingThey take care of benefits administrationThey manage your employee handbookPayroll administrationDrug testing programsDo business smart with a professional employers organizationWhat is PEO? A professional employer organization for employers is an outsourced professional that handles all administrative tasks related to HR and payroll.
PEOs are full-service professional organizations that offer their clients a number of benefits. Here are some reasons to consider hiring a Professional Employer Organization as part of your business expansion:
A PEO can offer your business substantial cost savings, which is especially important when cash flow may be low.
According to one study, hiring a PEO saves companies $1,775 per year for each employee.
With this money, you could hire more employees or invest in marketing efforts for your products/services, all of which would increase your income.
You can also save money by reducing errors in your payroll. PEOs specialize in human resources and payroll, so you can trust them to handle this for you while saving time.
The best PEO will provide a high level of service at an affordable price and will match or beat prices offered by other Professional Employer Organizations (PEOs).
Complying with federal, state and local laws is an important part of running a business. However, it can be difficult to stay compliant while growing your business.
A top notch PEO will provide services such as:
When you add these crucial elements together, the result is the peace of mind of staying compliant. You will then focus on what is most important:running your business.
Compliance issues can be time-consuming and costly, but they shouldn't take you away from the day-to-day operations of your business. A PEO will serve as a liaison between your company and government agencies to ensure compliance with all laws.
You can also expect the PEO to help you stay current with new laws and compliance changes.
A PEO provides employers with full-time, part-time, and temporary employees. With this service, you won't have to worry about hiring someone who isn't a good fit for you or who can't stay on board for too long.
If the business grows, adding new staff becomes necessary at some point. However, it can be difficult to find quality candidates who match your needs and requirements.
A professional employer organization, versus employee hire agreement that provides new workers on a temporary basis, is that PEO provides staffing services and screens all applicants to ensure nothing falls through the cracks during a major hiring – a great advantage if you are busy running your business.
When you review the backgrounds of potential recruits before putting them on the payroll, a professional employers' organization can help you avoid costly mistakes. You will also have access to employees who are already trained and ready to work. This will save you valuable time when expanding your business.
With a PEO in charge of HR tasks such as onboarding new hires, you can focus on running your business and have the PEO handle day-to-day HR activities.
As your business grows, you may want to offer employee benefits.
Administering benefits can be complicated, especially if staff are in multiple locations and/or working different hours. However, with a PEO handling this task for you, it becomes much easier.
A PEO will offer comprehensive benefit packages that include:
These benefit packages can be customized to meet your business needs. You can also create a benefits package that works with what your employees want.
This saves you time and money while allowing you to provide the best care to your staff without sacrificing quality or coverage levels. This is another way a PEO can help employers grow their business by taking over HR tasks and making them more manageable.
As your business grows, it's important to have a written human resources manual that outlines what employees can and cannot do. This includes:
A professional employers organization will create an employee handbook based on what you need while ensuring compliance with state and federal labor laws.
You'll get a comprehensive guide to meeting the needs of every member of your workforce. If changes are needed, your PEO can update the document to reflect what is happening in your business.
Additionally, a PEO will provide training programs for managers and supervisors on how to handle HR tasks, such as disciplining employees or understanding what an employee handbook is supposed to look like.
When it comes to what employers need, payroll is usually at the top of the list.
A PEO will handle all aspects of your payroll administration, including but not limited to:
Your company will have a dedicated point of contact for payroll matters. That means you'll have someone to call if there's a problem.
As a business owner, you need to ensure that your staff are professional and trustworthy.
Drug testing programs are another way to ensure this happens. So hiring managers can check what employees are saying about their drug use before putting them on payroll.
Your PEO will work with recruitment agencies or third-party vendors who provide these services as part of a comprehensive package for employers seeking top talent.
Many companies choose to implement pre-hire drug testing, which helps weed out unsuitable candidates for certain positions. If post-employment testing is required, it may be completed at random.
A PEO will also take care of all aspects of what is required to ensure that your business remains compliant with applicable drug testing laws.
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A PEO is a valuable resource for any business that wants to provide competitive benefits and exceptional service levels while saving the time, money, and headaches associated with hiring new employees.
If you are looking to expand or expand your business to another country, then hiring a professional employers organization is what you need to do.
We hope that you now understand what they are and what advantages you can enjoy in entrepreneurial success. For more informative content, keep reading our articles.
