One of the greatest challenges of running your business is the constant flow of management demands that come with your growing workforce. You may not be hiring today – but at some point in the future, you will be. And even handling the many aspects of HR administration for your existing team members can quickly drain your time, energy and finances.
By working with a professional employer organization (PEO), you still run your company and have final say over all talent-related business decisions and strategies. But you free yourself of labor-intensive day-to-day tasks and have the added advantage of specialized experts to address your HR needs. And, you find yourself in a stronger competitive position when it comes to attracting the most in-demand job candidates.
Look a little more closely at these five reasons it may be time to contact a PEO:
1. Better Benefits
Because PEOs serve multiple clients, they leverage group purchasing power for healthcare and retirement plans, as well as numerous other benefit options. This enables you to offer your employees the top-level benefits they need and deserve, even though yours is a small to mid-sized enterprise.
- According to an AFLAC employee finding survey, 40 percent of employees would take a new job with lower pay, if it meant better benefits.
2. Lower Benefit Costs
The average cost of an employer’s healthcare plan contribution in 2017 was $6,401 per employee. Your PEO can help lower that cost significantly.
3. Enhanced Recruitment
Offering a competitive benefit package is a key factor in attracting and retaining good talent, but there are also many other aspects to your successful recruitment strategy. This includes building a talent pipeline, so you’re ready when the time comes that you need to hire quickly and successfully.
- The Society for Human Resource Management (SHRM) reports that finding a new employee costs $4,129 and takes at least 42 business days. PEOs have access to broad candidate bases and client networks, as well as specialized expertise in screening and evaluating applications. This saves you massive amounts of time. As a business leader, you see only the cream of the crop when interviewing, and you can focus on making a better final hiring decision.
4. State-of-the-Art Performance Tracking
A PEO can help you effectively utilize the latest HR technology, including data analysis to tell which tasks an employee does best and whether or not they’re meeting the performance goals.
5. Tax and Compliance Expertise
PEOs know all the ins and outs of tax laws, as well as the local, state and federal rules and regulations that apply to managing your workforce. This can range from workers’ compensation administration and regulatory compliance assistance to full payroll management, OSHA reporting, accident and fraud investigation and more.
Looking for a smart business advantage?
As you consider working with a PEO, be sure to find a business partner with the qualifications and credentials to ensure ongoing top-quality service. Lyons HR is accredited by the Employer Services Assurance Corporation (ESC), a distinction earned by only five percent of all PEOs. And as the first PEO to receive Internal Revenue Service (IRS) certification, Lyons ensures that clients receive the highest level of service with demonstrated financial security. Contact us today to learn more.