Ever wonder how some businesses can effortlessly manage the complexities of Human Resources (HR) functions, enabling them to stay focused on their core competencies? Let’s face it:: sometimes it can be overwhelming for companies – even small companies – to handle all HR and compliance-related responsibilities in-house.
That’s why many businesses turn to Professional Employer Organizations. Professional Employer Organizations, or PEOs, can be a game-changing solution for businesses that want the easiest path to virtually complete independence from day-to-day and strategic HR challenges.
But what exactly are Professional Employer Organizations (PEOs)? Read on to learn how PEOs work, how to choose the right PEO, and how to best leverage PEOs effectively for your business’s growth and success.
(Keep in mind that PEOs are just one of several options when considering outsourcing key HR functions. For more, see our blog that compares PEOs to payrolling services and Employer or Record (EOR) services.)
What is a Professional Employer Organization?
A Professional Employer Organization is an outsourcing firm that specializes in handling HR functions, such as payroll, benefits administration, training, and compliance for businesses. A PEO becomes a co-employer of your staff. For small and medium-sized businesses that have a lot on their plates, PEOs step in to take HR burdens off their shoulders. This enables you and your team to focus on your core operations while the PEO handles all the complex administrative tasks.
Why use a PEO?
In many situations, introducing a Professional Employer Organization into a business can significantly enhance growth and provide a heightened sense of operational security. Let’s break down the ways a PEO can help boost your business:
- Handling Payroll and Taxes: PEOs take care of your payroll and deal with all those tricky and time-consuming tax filings. They make sure everything’s in line and you don’t have to worry about double entries or mistakes.
- Managing Benefits: PEOs make it easier for you to offer amazing benefits to your team. These typically include standard programs, such as health coverage, dental insurance, and retirement plans, but often also extend into some non-traditional benefits that they can offer your employees at better rates than you might not be able to secure on your own. And of course they manage all benefits enrollment responsibilities and claims processing.
- Staying on Top of Compliance: With a PEO, you’ve got compliance pros on your side. They help you steer clear of fines by keeping up with all the payroll tax laws, unemployment insurance complexities, and other HR regulations. HR laws vary by country and state/territory and they change frequently, so a PEO can help your business easily keep up with all these nuances and variations.
- Managing Risk and Safety: Beyond offering workers’ compensation insurance, PEOs may conduct safety audits and training, which can help reduce claims. Some also manage OSHA inspections.
- Providing HR Support: PEOs have HR professionals who offer experience and expertise in their HR services. They are the first line of defense when employees need HR support and they can work alongside your HR team (which may be a very small group or even a single person depending on the scope of the PEO) to provide big-picture guidance on the strategic future of your HR function.
- Managing Talent: Some PEOs even help with finding and keeping great people by handling recruiting, training, and onboarding.
Choosing the Right PEO
If you believe that a PEO is right for your business, picking the right one is crucial. Here are some things to consider when making your choice:
- Fit for Your Business: Make sure the PEO offers exactly what your business needs. Each one offers a unique mix of services, so find the one that matches your requirements and corporate culture.
- Cost Structure: Be sure to understand every aspect of their pricing structure, and watch for hidden or subtle add-on costs. Their pricing must make sense for your business’ budget and financial plans.
- Industry Know-How: Many businesses have industry-specific HR requirements that add more complexity to an already complex business operation. If that applies to you, make sure your selected PEO knows the ins and outs of your industry. That way, they can give you correct advice and offer services that don’t open you up to legal risks.
- Reputation and Reliability: You want a PEO that’s known for being reliable and comes with glowing recommendations from other businesses. A PEO with a solid track record is a safer bet.
How Can Prosperix Help as a PEO?
For many businesses, Prosperix has emerged as a standout choice in the PEO landscape. Here’s why:
- Customization: Prosperix offers bespoke solutions that we design and implement after a thorough knowledge transfer period. It’s critical that we understand your business and we take the time necessary to get this right..
- Comprehensive Services: From onboarding to payroll to employee wellness programs, Prosperix covers all facets of HR. And our PEO services integrate into our other key offerings, such as contingent workforce recruiting, onboarding, management, and compliance.
- Innovative Technology: Utilizing cutting-edge technology, Prosperix streamlines HR processes for greater efficiency.
- Experienced Team: Prosperix’s professionals are not just HR experts; they are seasoned in helping businesses thrive in today’s complex and ever-changing HR environment.
PEOs, especially leaders like Prosperix, can represent a secret weapon for small or mid-sized businesses looking to grow. They take the HR load off your shoulders, giving you the freedom to focus on what you’re passionate about — your business.
If you’re looking to offload as many of your HR responsibilities as possible to an expert, a PEO might be a smart choice that aligns with your vision of business growth and employee satisfaction.
And if you’re intrigued by the possibilities of what a PEO can do for your business and want to dive deeper, set up a demo call with Prosperix today.
