Many business owners are considering Professional Employer Organization (PEO) firms to outsource traditional Human Resources functions. Partnering with reputable organizations helps your business attract new candidates and improve current working conditions. Reliable PEOs allow you and your HR department to heavily focus on your daily operations, while outsourced organizations conduct necessary back-end responsibilities. If you are interested in the reasons for outsourcing a PEO firm to replace HR responsibilities, continue reading this post.
Manage Payroll Processing
Professional employer organizations are most well-known for managing payroll processing. Payroll can be a time-consuming and tedious aspect for business owners and HR professionals alike. Unfortunately, it also one of the most important aspects of operations. Employees that are not paid will be unwilling to work. Failure to comply with federal and state deductions could face your serious fines on behalf of the IRS. PEOs help to calculate and administer payments to your employees. Organizations can calculated paychecks for salaried employees, total time sheets for employees who are paid by the hours, and consult on project completion for contractors or other outsourced labor. Consider outsourcing payroll processing to PEO firms to alleviate HR functions.
Reduce Your Business Liability
When deployed effectively, PEO firms can reduce your overall business liability. Employing the best PEOs can reduce a significant portion of your liability associated with hiring, employees, and business ownership. PEOs help accurately, collect, report, and file annual taxes. They additionally help prepare and file any EEO claims you incur. Most organizations can help manage any employee-related claims you incur as well. Traditionally, this is done by filing and managing reports with Employee Practice Liability Insurance, or EPLI. If you are considering outsourcing HR responsibilities, consider how professional employer organizations reduce your business liability.
Obtain Savings On Employee Benefits
Reputable PEOs can help you obtain savings on employee benefits. Due to their size and capacity, PEOs have more negotiating leverage over insurance companies. They source insurance packages based on your business alongside all businesses they serve. Sourcing packages for much larger groups obviously provides significantly better package options for you and your employees. At the same time, competitive packages require you to pay less to provide entitled employees with proper coverage. These packages include full medical, vision, dental, a health care account, disability protection, commuter or educational assistance, and a retirement plan. If you are considering HR PEO services, evaluate how they help you obtain savings on employee benefits.
Improve Performance Management Practices
PEOs can help your business improve your performance management practices. You should always seek to reward positive performance in your business. The employees who are constantly the best performers should be treated like valuable assets. Look to PEOs to document and keep records regarding employee evaluations. Organizations can provide you materials to assist in supervisory coaching or employee development strategies. Others even offer salary measurement guides to guarantee your employees are being paid fairly. Consider partnering with a professional employer organization to improve your performance management practices.
Onboarding New Employees
PEO firms have even developed features to onboard new employees into your business. A number of organizations offer leadership and training services for new employees. This allows new hires to view employee handbooks, view training materials, and learn more about your business. Many business owners have even created virtual training seminars for new candidates to access. These are not only informational, but also provide a personable introduction into the company. The best professional employer organizations can help you with employee onboarding for your business.
Many business owners are looking to PEO firms for HR outsourcing. Even if you do not plan to reduce your actual employees, PEO firms significantly help manage human resources responsibilities, such as payroll. When you source the right firm, you reduce your overall business liability. Due to their size and capacity, professional employer organizations can help you obtain savings on various employee benefits. They also help improve your performance management practices to reward existing employees. If you are interested in the reasons for outsourcing a PEO firm to replace HR responsibilities, consider the points mentioned above.