As a small business owner, resources can be limited, and knowing what to focus your attention on and what to trust third-party providers is important for your overall bottom line. One aspect of business you cannot do without is a skilled and competent HR department. However, you may lack the experience, time, or capital to manage your in-house HR department. Luckily, that is where a certified Professional Employer Organization (PEO) can help. A PEO can provide the expertise and experience needed to manage the most important HR needs. An efficient solution that doesn’t strain your budget or reduce HR quality here is more about PEOs and tips for choosing a PEO for your small business,
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Advantages of Hiring a PEO
A PEO provides HR support and services to your company, including standard administration and more involved tasks such as ensuring compliance. Some of the reasons for using a PEO include the following. PEOs offer services to thousands of employees and several businesses, giving you access to high-quality employee benefits you may not have access to otherwise. PEOs also assist with various employee plans such as insurance and also workers’ compensation and also handle claims on your behalf. The support they provide is handled by experts, meaning you don’t have to worry about the job being done right.
Services Offered
Some of the services a PEO can assist your small company with include payroll services, employee investigations, handbooks for proper procedures, employee training, compliance, and the management of your benefits packages, such as insurance and retirement. Such support can also help your business grow as it allows you to focus your time and resources on more important matters such as daily business concerns. As a small business owner, the support PEOs provide are ones your company needs to succeed in the modern marketplace. When hiring professionals to manage such important tasks (and serve as a co-employer), you want to know you’re hiring a company you can depend on. Here are some tips for picking the best PEO for your business.
Five Tips For Picking a Good PEO
- Check For Accreditation: a PEO must have the proper accreditation to provide the services they do. Having the proper paperwork ensures that you are trusting your HR needs to serious professionals. Some of the most important accreditations to look for include IRS certification and accreditation by the Employer Services Assurance Corporation (ESAC).
- References: a successful PEO will be more than willing to share references with you. These references will give you a better idea of the type of service you will receive and how the business relationship will go.
- Consider Your Business Needs: before talking to a PEO you need to know what your business needs are. Consider what challenges you are facing, and whether you will need more services in the future, and look at various service needs such as payroll to give you a clearer picture of what you want a PEO to do for your business.
- The PEOs Record: an effective PEO will have a strong record of financial success, a history of compliance, and a high client retention record. If a PEO has been working with several reputable companies for years, this is a good sign.
- Ask about Their Services: a PEO can offer a wide assort of services and support for a business. Some of these services you may not need, but others could be ones you are specifically looking for. Knowing what services a PEO offers ensures they are a good fit now and in the future if your needs grow and change.
A professional employer organization offers many benefits to the companies they serve. If you’re a small business owner who needs HR support to properly service your employees, a PEO can help you with those goals.
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