Two Scenarios

Are you running a small business that's rapidly growing or struggling to meet its targets? In either scenario, you want to focus on the core aspects of your business to drive growth or ensure survival. But often, you find yourself bogged down by administrative tasks that don't directly contribute to your company's growth.

That's where a Professional Employer Organization (PEO) can help. PEOs allow you to outsource these administrative tasks and focus on what matters – growing your business. With a PEO, you can take advantage of cost savings, improved HR operations, and increased focus on core business activities, leading to overall business success.

What are these administrative activities?

Here are a few of the tasks:

• Human Resources - offer letters, handbooks, training, etc.

• Recruiting - Applicant Tracking, interviewing, background checks

• Workers’ Compensation - Audits, Claims management

• Employee Onboarding - I9s, W4s, new hire paperwork

• Payroll - timekeeping, tax filings, etc.

• Benefits - Enrollments, Renewals, Claims, and COBRA

• Regulatory Compliance - State and Federal rules and regulations

• Retirement - 5500s, plan administration, and setup

So, what can you do? What are your options? 

Well, you can: Hire an experienced professional to do the job       

Big companies are okay with this, but when you're a small to mid-sized business (SMB), it might not be practical as it will cost you the full-time salary and benefits of your additional employees. Needless to say, the more experienced they are, the more costly it will be for you: Outsource the services for specific functions

Big companies usually outsource specific tasks to complement their internal system. For instance, if it involves Human Resources (HR) tasks, your HR manager still takes responsibility for whatever the company outsources: Enter into a co-employment arrangement with a PEO

PEO or Professional Employers Organization is an option that is best suited to small to medium-sized companies.

PEO for Small Businesses

As a small or mid-sized business owner, you know that managing employee-related responsibilities can be a daunting task. But what if you could outsource these administrative tasks to a trusted partner, allowing you to focus on growing your business?

That's where a Professional Employer Organization (PEO) comes in. With a PEO, you can enjoy a contractual co-employment arrangement where the PEO takes on full responsibility for some defined administrative aspects of the business operation, including associated risks and liabilities. This means you can rest easy knowing that your employee-related responsibilities are in good hands while you focus on what matters – growing your business.

Don't let HR responsibilities slow you down. Consider a PEO today to streamline your administrative tasks and take your business to the next level.

How can a company benefit from a PEO?

Using a PEO can help a company in many ways:

Better Focus on the Business 

Running a small or medium-sized business can be challenging, especially with the multitude of administrative tasks that come with it. But what if you could free up your time and resources to focus on what matters most - growing your business? That's where Professional Employer Organizations (PEOs) come in.

It offers savings

As a small or medium-sized business owner, your top priority is to keep your operations running smoothly while maximizing your profits. The National Association of Professional Employer Organizations (NAPEO) conducted a study and found that utilizing a PEO can lead to significant savings for your business.

On average, PEO clients saw a 27.2% return on investment based on cost savings alone, equating to $1,775 per employee per year. These savings were achieved through reduced HR personnel costs, improved health benefits, enhanced workers' compensation, and optimized unemployment insurance. Partnering with a PEO can help you streamline your HR operations and focus on growing your business.

Access to better employees benefits 

By partnering with a Professional Employer Organization (PEO), your small or mid-sized business can take advantage of its extensive network to secure better employee benefits. With the PEO acting as the employer of record, your business can benefit from the buying power of its clientele, providing your employees with access to comprehensive health benefits packages and other employee benefits typically only available to larger companies.

This can result in increased employee satisfaction and retention, ultimately contributing to the growth and success of your business. PEOs offer affordable health insurance from national carriers like Aetna, Blue Cross Blue Shield, Cigna, UnitedHealthcare, Humana, and Kaiser.

PEOs offer expertise

You can leverage the expertise of the PEO to gain information on the industry's best practices that can benefit your company. 

HR management can prove daunting if it is not your expertise, especially in fast-growing companies. Inefficient HR management can result in conflicts, low employee morale, high turnover, lost business, lost talent during recruitment, and even legal issues. These are what PEOs can help you with.

Better compliance management

PEOs can help you avoid compliance issues and protect you from fines, penalties, and lawsuits. This can include adherence to labor laws – wage and working hours, workplace safety, harassment and discrimination, payroll taxes, and other employee-related laws, regulations, and standards. A PEO should be qualified to implement systems to improve compliance.

Improved Employee Retention

With better benefits and more professional HR management, employee retention can improve.

Better Talent Attraction

The better the company's reputation, the higher the chance of hiring quality talent.

Peace of mind for business owners

After you have set it up, you can proceed in peace and focus on what's essential for your growth without thinking about your human resources management.

Choosing the Right PEO

Contracting PEOs for SMBs is a good idea; we have established that. However, bear in mind that they are not created equal. Here are some points you may consider when choosing the right PEO for your company.

Look for the best fit. 

Not because a PEO is known to be good, it means it is the best fit for you. Identify the human resources and risk management you need, set your goals, and match them with what the PEO offers. 

Check on their track record. 

How long have they been in the business? Who have been their clients? Ask for professional and client references that you can check.

Choose expertise. 

Each business operation is unique. In the same way, each PEO must have its line of strengths and weaknesses. Select one with strength that matches your requirements. 

Review the allocation of their human resources

Check their organizational setup and the team directly involved in your business. Do they have enough workforce for an efficient operation?

Check on the PEO company's culture. 

Do they match your company's? Do you share the same values? Bringing two companies with different cultures and values together can be a source of conflict.

Probe into the PEO's financial capabilities. 

Is the PEO in good financial standing and has the resources to sustain good services?

Ask about industry-accreditation 

Accreditation, like one in  Employer Services Assurance Corporation (ESAC), and certifications, such as one from the IRS, indicate the PEO's financial and reputational standing in the industry. 

Check on the growth capability of the PEO

Look beyond the size of your current operation. Should your company grow within the contract period or beyond, can the PEO grow with you? 

Get the help of a PEO Broker 

A PEO Broker can save you time and energy finding your company's best PEO match. PEO Brokers can analyze what you need and match you up with one from its network of PEOs.

Should you want to explore how a PEO Broker can help, send us a message at Dinsmore/Steele, and we will gladly assist you.

Two scenarios: One solution. A PEO.