You need your business to thrive and grow. You do that by controlling costs and working with trusted partners. That means one way to meet your goals is by outsourcing certain HR functions to a Professional Employer Organization (PEO).
Finding a PEO that offers you the flexibility is key to meeting your business goals. The flexibility of PEOs is part of what makes them more attractive to small businesses than other HR outsourcing solutions.
The right PEO can give your company flexibility of scale, comprehensiveness, and cost savings. Together, this partnership can help your business grow and thrive.
Scalable
You intend for your company to grow. As your business grows, your needs will inevitably change. Your internal HR staff may be able to change with you, but that may also require that you hire more staff, a costly and time-consuming process.
Your in-house HR team can help your business grow. But at a certain point, they reach their limit. You then have the option to either hire another full-time HR employee or work with an HR outsourcing partner.
Hiring a new HR employee can be costly. Not only are you putting all of your faith in one hire, but HR experts command high salaries. This option may be cost-prohibitive.
With a PEO, you gain access to an entire staff of HR experts who specialize in different areas. These professionals supplement your in-house HR staff without the time and expense of needing to hire another employee. Partnering with a PEO future-proofs your HR needs. When your business needs change, you no longer have to hire or fire staff. With the right PEO, you can simply change your service to meet your current needs better.
Comprehensiveness
HR outsourcing comes in several forms. Payroll processing companies offer your business payroll services, but nothing else. Conversely, a PEO provides your business with a complete suite of HR-related services.
These services include:
- Payroll processing
- Tax remittance
- Compliance and regulation
- Benefits administration
- W2 and 1099 preparation
- Workplace safety training and programs
- Unemployment claims response
- Risk management
The best way for your company to ensure that you get the most out of your PEO partnership is to figure out what you need. Unlike other HR outsourcing companies, a PEO can provide you with every HR need your business may have, both now and in the future. The ability to provide you with a comprehensive service offering gives you peace of mind that your business needs will continue to be met, even as they continue to change.
Cost Savings
Part of your job is to control your business costs. Unlike many business vendors, a PEO can actually provide your company with a positive ROI. With the right PEO, you will be able to control your costs and even see cost savings by freeing up your internal HR team to focus on your core business needs.
How can PEOs consistently command a positive ROI? It all comes down to a concept called co-employment.
Co-employment has many benefits for your company. One of the biggest cost-saving opportunities is that co-employment allows your PEO to negotiate with insurance companies to give you and your employees access to more competitive healthcare benefits.
Small- and mid-sized businesses often find it difficult to offer competitive healthcare options to their employees because the costs are simply too great. Yet besides salary, employees consistently say the most sought after benefits an employer can provide are high-quality and affordable healthcare options. Partnering with a PEO gives you the ability to give your employees what they want at costs you can afford.
These cost savings through your PEO partnership not only provide you with growth opportunities, they also serve to make your employees more loyal and efficient. When employees feel supported through a stellar benefits package, they are less likely to look for other employment opportunities. Keeping your team on staff further reduces your expenses by keeping your turnover low.
Your employees are the catalyst that helps your business grow. Increasing your employee retention ensures that your business runs smoothly and efficiently. The cost savings you get by keeping employees on staff can be reinvested into your business to help you grow even more.
PEO Flexibility Helps Your Business Grow
Instead of being rigid and offering you a one-size-fits-all plan, the right PEO can help your business grow by giving you the services and support you need when you need them.
Outsourcing HR can give your business the push you need to get to the next level. Finding the right partner for your company requires that you know and understand your business needs. Your PEO then acts to complement those needs while being flexible with the services offered as your business grows and changes.