As a small business leader, your job is to run your company. It sounds simple on the surface, but when you start breaking it down into all its responsibilities and day-to-day tasks, it can quickly become overwhelming. And your first – and most time consuming – priority is your people. The good ones are worth every minute, but there simply aren’t enough minutes, or even hours, in a day.
Effective human resource management is essential, yet the cost of adding headcount to meet your talent needs can be prohibitive. That’s why, for a growing number of companies, the answer lies in partnering with a professional employer organization, or PEO.
Here are three ways a PEO can save you and your company time, money and stress:
1. Coemployment Benefits
Working with a PEO, you establish a co-employment relationship, where your PEO becomes the employer of record for your staff. This gives you access to benefits packages that typically are available only to larger employers. And your PEO handles taxes and other administrative duties associated with staffing.
- Companies in PEO partnerships have a 10 percent to 14 percent lower turnover rate than comparable organizations that do not. They also grow seven percent to nine percent faster and are 50 percent less likely to go out of business.
- PEOs are able to bundle benefits together and achieve economy of scale in pricing, thanks to their broad employee pool. Because you’re able to offer premium benefits, the playing field as you compete for top talent is leveled, even against much bigger players.
2. Enhanced Compliance and Risk Mitigation
Your PEO can help structure your policies, procedures and practices to stay compliant with all relevant laws and regulations and avoid costly litigation. If legal questions do arise, you’ll have ready access to answers and solutions.
- Cost savings result when you avoid costly missed deadlines or filing errors. Your PEO team will handle the burden of navigating local, state and federal compliance issues. They can also assist with OSHA matters and safety and security training and program development.
3. Access to Specialized Expertise
Increasingly, companies are realizing that partnering with a PEO costs less and produces better results than paying salaries for in-house staff to provide the same services. For instance, it’s probably unlikely that you can afford a full-time benefits specialist, payroll manager or compliance expert. You can turn to your PEO for guidance in as many or as few areas as needed.
Looking to Save Money?
Lyons HR functions like an off-site HR department to small and mid-sized employers. Acting as a seamless extension of your business, we can manage your HR from recruitment through retirement, and anything in between. Complementing our expert services is our web-based Lyons HR Cloud software, which you can access to further simplify all aspects of talent management. Contact us today so we can tell you more.