To be a top employer in today’s work environment, you need to be able to offer your employees a competitive benefits package. Unfortunately, many smaller companies can not offer the same benefits that their larger competitors are able to provide. The main reason for this is that larger companies qualify for discounts and special pricing on benefits unavailable to small businesses.
When you partner with a PEO, you can help level the playing field. PEO stands for Professional Employer Organization. By partnering with a PEO, you come under their umbrella and ostensibly become a larger company as far as benefits providers are concerned, allowing you to get the same pricing as your biggest competitors.
NetPEO has been partnering with companies looking to grow their business for over 30 years. Contact us today using our online contact form or by giving us a call to discuss the needs of your organization and get a free quote.
What Is a PEO?
A PEO is a company that partners with other businesses, allowing these businesses to benefit from being linked to a larger organization while also receiving Human Resources (HR) services. This setup is known as “co-employment.” In co-employment, a PEO will act as an additional employer to your staff.
For your employees, this partnership will mean they have access to benefits packages typically reserved for companies employing thousands of workers. Additionally, a PEO will be able to manage all of your HR needs. While you will retain your rights regarding the hiring, firing, and management of your staff, the PEO will handle all of the daily HR work.
The Benefits of Partnering With a PEO
Partnering with a PEO can benefit your company in a variety of ways. Some of the perks of entering into this type of relationship include:
- Gaining the ability to offer better benefits to help entice the best talent
- Ensuring that your workforce is more content, resulting in decreased employee turnover
- Reducing the cost of the benefits you provide to your employees
Additionally, by moving all of the HR work for your company over to a PEO, you will have the resources of a fully trained and experienced HR department without having to hire any additional staff. This partnership can help you feel confident that you are in compliance with all federal and state regulations, including the Affordable Care Act (ACA).
The Division of Labor and Responsibilities in a Co-Employment Arrangement
When you enter into an agreement with a PEO company, the roles of both parties will be clearly defined. Having a strong understanding of the rights and responsibilities of both parties can help reduce any tension caused by entering into a partnership with an entity you have not worked with in the past.
Your Role
When you partner with a PEO, your role within your company will not change. You will remain the executive of your business and the primary employer of your staff. While the PEO will work with you and your employees, they will follow your lead in all matters regarding both the big picture and the day-to-day operations of your company.
The Role of the PEO
The main role the PEO will serve is as your company’s HR department. Some of the services they can provide in this capacity include:
- Handling payroll
- Recruiting
- Training
- Administration of benefits
- Handling disputes
- Dealing with unemployment claims
- Dealing with tax withholding
- Performance evaluations
While a PEO can handle all these aspects of your business for you, you also will have the option to keep any of these duties in-house if you desire to do so. You maintain full control of your company while your PEO partner is there to provide any support you need to help your company grow and flourish.
What Makes a PEO Different Than an HR Outsourcing Service?
A PEO and a Human Resources Outsourcing (HRO) service are similar in that they both allow you to outsource your company’s HR needs. However, while an HRO is merely an external contractor with whom you work, a PEO is a full partner to your organization. This partnership allows the PEO to extend their benefits opportunities to your staff which an HRO can’t do.
Using an HRO would still save your company money in the long run over keeping your HR department in-house. However, that savings is only a fraction of the money you can save with the benefits discounts you can receive by working with a PEO. Additionally, access to these benefits can help you attract top talent to your company.
How Can a Massachusetts PEO Help My Business?
When you work with a PEO, they can take over all of the HR needs for your company while also helping you access benefits packages that can immediately make jobs within your organization among the most highly coveted in your industry. Some of what a PEO can do for you includes:
- Giving you access to better benefits packages
- Managing payroll
- Ensuring compliance
- Recruiting new employees
- Dealing with claims and disputes
- Improving your performance review system
Giving You Access to Better Benefits Packages
When you partner with a PEO company, you will immediately gain access to discounts on benefits packages, including health, dental, vision, and various other perks. Not only will these benefits help you attract top talent in your field, but they will also help with employee loyalty and retention.
Managing Payroll
A PEO can help to streamline your payroll process. By simplifying the way payroll is done and moving to a paperless format, a PEO can reduce the number of payroll errors and save your company money. A PEO will help get your employees set up with direct deposit, distribute online pay stubs, and digitize all W2s to make everything more efficient while also going green.
Ensuring Compliance
When a PEO takes over as your HR department, they will ensure that you are in compliance with the Affordable Care Act. When the ACA was passed into law, it necessitated a dramatic shift in the way that companies manage their benefits packages. Working with a PEO can leave you feeling confident that you are meeting all of the requirements of this legislation.
Recruiting New Employees
While enabling you to offer better benefits can help you draw in new talent on a passive level, a PEO can also actively assist in the recruitment of new employees to your company. A PEO can help with all steps of the recruitment process, including:
- Talent scouting
- Screening
- Interviewing
- Onboarding
Dealing With Claims and Disputes
A PEO can also help settle any claims or disputes against your company. Whether you are facing an unemployment claim, a workers’ compensation claim, allegations of discrimination, or any other dispute that may arise, a PEO can handle the problem and protect you from costly consequences.
Additionally, a PEO can help you avoid many claims and disputes in the first place by providing your company with the resources of a highly trained and experienced HR department.
Improving Your Performance Review System
A PEO can help you set up a performance review system that enables both employees and managers to better understand and manage goals and their roles within the company. With improved communication regarding expectations, you can be confident that you will get the best work possible from your staff.
Why Should I Choose NetPEO Over Another Massachusetts PEO?
The founders of NetPEO have spent decades working in the HRO and PEO industries. What we have learned from this experience is what other companies do right and areas in which they could be better. While most of our competitors have the technical knowledge necessary for working in the industry, they tend to be lacking in customer service skills.
At NetPEO, we have combined our vast technical knowledge with a focus on customer service and satisfaction. We listen to the needs of our partner businesses and make sure we are delivering a product that works best for them. We keep the lines of communication open so that we can continually grow alongside your company as your needs change.
The mission of NetPEO is to strengthen your company by providing you with the necessary tools to ensure your employees have access to top benefits and that your HR services are running smoothly and efficiently. Find out more about what we can do to help your company grow by giving us a call or filling out our online contact form to get a free quote.
