As your small business grows, you’ll need to hire more employees. And as your staff increases, so will the time you’ll need to spend managing payroll and HR functions. This pulls you away from those core responsibilities that keep your business successful.
So, what’s the solution?
A Co-Employment Partnership
Professional employer organizations, or PEOs, began forming in the early 1980s. They partner with small businesses to co-employ their workers. This arrangement enables you to offer HR, payroll services and employee benefits comparable to what larger companies provide. This is essential to staying competitive in today’s candidate-driven job market, with unemployment at a 17-year low.
Not the Same as Outsourcing
What sets a PEO apart from an HR outsourcing firm is your co-employment agreement. While you continue to manage and run your day-to-day business, your employees have you as their direct supervisor – and your PEO for payroll and HR issues. This takes a significant, time-consuming and yet vitally important burden off your shoulders.
In addition, your PEO may offer compliance, safety and risk management, workers’ compensation, recruiting, and training and development services.
A Smart Solution
Partnering with a PEO can help you grow your business by making it easier to hire and manage talent. In addition, it reduces business risk, enhances your employment brand, and reduces your administrative overhead and back-office paperwork.
- According to Entrepreneur, up to 40 percent of a business owner’s day is spent managing HR issues. This is time that could be better invested in product development, networking, sales and high-level customer service.
- PEOs pool their clients’ employees to obtain better benefits at lower costs. They can typically secure better health coverage, as well as dental and vision insurance, 401(k) plans, disability, commuter perks and more.
- As a co-employer, a PEO ensures your company stays in compliance with state and federal laws and consistently uses HR best practices. It can be tough to stay abreast of constant legal and regulatory changes. But because PEOs focus solely on HR administration, it’s their job to remain current on these topics and ensure full compliance.
- Employing more qualified, engaged team members helps your business remain competitive. And the improved benefits packages available through a PEO will help you attract and retain top talent.
Partner with a PEO company in Gadsden, AL!
Lyons HR is a PEO accredited by the Employer Service Assurance Corporation (ESAC), the gold standard for industry best practices and financial reliability. We’ve earned certification for Best Practice by the Certification Institute, an independent authority for risk management oversight. If you’re considering a PEO partnership, read our related posts or contact us today to learn more.