Outsourcing HR to a trusted PEO is one of the wisest business decisions you can make when looking for ways to get some of your time back. Read on to learn more.
If you look at any successful business, you’ll find that their employees are one of the most valuable assets. For an employee to succeed, 100% of their focus needs to be put towards increasing the company’s profitability and growth. A lot of times, employees dealing with time-consuming HR issues such as paperwork and legal stipulations spend too much on these aspects and lose sight of company growth. The various functions of the HR department are often way too complex to handle and maintain within the company. This is where PEOs come into play.
PEO stands for Professional Employer Organization, which essentially takes over all HR functions of a company allowing employers to boost their productivity, reduce costs, gain more time, avoid legal penalties, improve accuracy, and hire and retain new employees.
Outsourcing HR to a PEO has many great benefits for your business. Here are the top 8:
By streamlining many HR functions, (such as compliance management, payroll, or benefits administration) your company will spend less time on endless paperwork, and more time dedicated to growing your workforce.
You know the saying “time is money.” This especially rings true for money-making businesses. Stop wasting time on things you can easily outsource for an affordable price.
Reliable Compliance With Changing Laws
Regardless of the company’s size, employment and labor laws are constantly changing. It can be a challenge to remain up-to-date on all of the regulations that are specific to affecting your workplace. When you outsource to a PEO they stay up-to-date on federal and state employment laws so you don’t have to. In turn, this helps your company comply with these laws and avoid lawsuits. PEOs also maintain company policies to guarantee your organization and your employees stay protected.
Seamless Hiring and Onboarding Experience
Increased efficiency when going through the onboarding experience means less hassle for your company. PEOs use tested, informative, and efficient screening and hiring strategies using proven methods for success. Helping you upgrade your employee training programs to suit the needs of individual employees and your overall company vision.
Easy Payroll and Accounting
Maintaining a company payroll is expensive and time-consuming. PEOs can also be responsible for employee pay stubs, tax, and dedication questions. PEOs even offer payroll analysis for accounting purposes. Freeing up the hassles of payroll can only be a positive asset to your company.
By outsourcing payroll and accounting, you won’t need to hire a dedicated HR staff or pay employees like office managers to manage payroll when they could be working on other, more profit-driven tasks. Small businesses often struggle with this expense. It’s much more cost-effective to outsource these functions so you can save time and money, and focus more on your company rather than the non-revenue generating aspects.
Small and medium-sized organizations often struggle to provide competitive health benefits packages at attractive rates for their employees. PEOs can leverage their large group buying power to get these packages at a more affordable price, creating better benefits and enticing employees to join or stay with the company.
Safer Workplaces and Lower Workers’ Comp Costs
At construction or manufacturing companies, risky activities mean a greater concern for safety. Lots of costs come into the equation when an employer faces an injury including medical expenses, lost productivity, and higher premiums. A PEO’s risk management department can work hard to keep their clients’ workers safe and costs low by preventing accidents in the first place while also managing any claims that happen.
Outsourcing HR functions to a PEO seems like a no-brainer. With so many benefits, you can eliminate the daily headaches you encounter trying to comply with legal factors, wasted time, and precious money you could be investing in your company. See for yourself all the ways hiring a PEO, like Harbor America, can help your company. We’re always available to answer any questions and provide further information.