Running a small business can be a complicated affair, particularly if you don’t have training in HR or accounting. The paperwork can become overwhelming as you add on staff, requiring additional hours that could be spent handling other key aspects of running your business.
Help is out there. Professional employer organizations (PEOs) offer many HR and accounting solutions to ease the strain that comes with managing employees for a growing business. Even better, businesses that partner with PEOs find both immediate and long-term benefits that come with this relationship.
If you’re interested in partnering with a PEO for the first time, or you’d like to see what new options might be available for your business, contact the PEO brokers at NetPEO by calling (678) 376-1212.
Co-employment
The arrangement between your business and a PEO is known as co-employment. When you decide to partner with a PEO, you agree to let the PEO become the “employer of record” for your employees through a co-employment agreement. This allows the PEO to handle the HR aspects of your business while you remain in control of the day-to-day operations of your business and managing your employees’ workflow.
Immediate Benefits
While there are many options to customize your relationship with your PEO partner, most of the benefits you can receive come from opting into the full suite of HR outsourcing solutions available to you. Choosing to partner with a PEO for all of your HR needs can net you the following benefits.
Extra Time
Rather than having a dedicated HR professional in-house, many businesses choose to spread HR responsibilities among employees. This process can be inefficient, leading to additional time away from other business needs. 40% of businesses report spending more than 80 hours a year on managing payroll and taxes.
Outsourcing these responsibilities to a PEO is a great way to reclaim that time.
Improved Benefit Packages
You’re more likely to retain employees and recruit new ones with a better benefits package. However, small businesses are at a disadvantage when it comes to insurance premiums, as group health insurance costs are calculated based on the number of employees in the group.
Thanks to the co-employment agreement, your employees count as part of the PEO’s health insurance group, along with the employees of any other partner business. Your employees can, therefore, have access to better health insurance at a lower premium.
Not only that, but your employees may be able to enjoy retirement benefits that you may not have been able to afford prior to your PEO partnership.
Fewer Headaches
Are you up to date on all your state’s regulations and federal labor laws? Failure to comply with mandated HR laws can set your business back tens of thousands of dollars.
With a PEO, the liability for HR compliance largely shifts to the PEO. Your PEO partner will have HR professionals who stay up to date on all relevant statutes.
Concerned about workers’ compensation claims? Your PEO covers both the workers’ comp insurance and managing any claims that get filed.
Long-Term Benefits
These immediate benefits, while great on their own, also end up providing you with long-term benefits as well. The National Association of Professional Employer Organizations (NAPEO) has found that businesses who partner with a PEO do better than similar companies in several key areas. These include:
- Improved revenue growth
- Reduced administrative costs
- Better employee retention
- Decreased likelihood of business failure
If you’re interested in seeing your business grow, finding a PEO should be a top consideration.
How NetPEO Will Benefit Your PEO Search
There are nearly 1,000 PEOs operating in the U.S. today, making the search for the right one a difficult proposition. Not all PEOs have the services you need, the experience in your industry, or prices that fit your budget.
NetPEO takes the stress out of finding a new PEO by doing the search for you. Our PEO brokers are trained to learn about your business and help you determine what types of HR outsourcing solutions are right for your business. We rely on your needs when we compile a list of trusted PEO partners that could fit your business needs.
But NetPEO doesn’t disappear when you pick out a PEO. We’ll be there to make sure that you remain completely satisfied with your partnership. Any issues? We’ll help you resolve them, even if that means helping you find a new PEO partner.
For your free initial needs analysis, call us at (678) 376-1212 or enter your contact information on the form to the right.
