One of the biggest ongoing challenges for any business is employment-related costs. In fact, this is often the largest slice of a company’s total fiscal pie. As a small or mid-sized business leader, how can you address talent management expenses, both short and long-term, while still having the time and energy to grow your company and focus on your mission and strategic initiatives? And it’s not any easier right now, as the U.S. and global economies continue to deal with uncertainty brought on by the still-lurking threat of worldwide pandemic and how to fully recover.
The PEO Solution
Partnering with a professional employer organization (PEO) is the answer for a growing number of businesses. If you’re not familiar or just need more information, the National Association of Professional Employer Organizations (NAPEO) is a good place to start. A PEO can efficiently manage part or all of your HR services, allowing you to focus on customer service, strategic planning, and other business growth initiatives. And because of a legal arrangement called co-employment, you retain full control of your company’s management and daily operations, while your PEO becomes the employer of record and assumes the tax-related and other responsibilities that go along with it.
There are many cost-cutting benefits to partnering with a PEO. Here’s a snapshot of a few major ones:
Insurance companies price benefits based on how many employees you have. So, for small or mid-sized companies, the cost of competitive packages can be prohibitive. But by pooling employees from their various clients, PEOs can get you access to plans typically available only to larger firms. This results in lower rates, which means better benefits and less cost, for both you and your employees. Additionally, a PEO will help you administer those benefits and leverage state-of-the-art technology to provide your workforce with quick and efficient means of navigating through the entire process.
If an employee files a workers’ compensation lawsuit, your PEO can save you time and money by processing the claim for you and handling much of the related legwork and paperwork. Moreover, insurance companies often deem certain individuals “high risk” for workers’ comp coverage. And even those employers in low-risk categories may find it tough to obtain affordable coverage. Partnering with a PEO can help you implement the plans and policies you need to address these issues. Your PEO can help with developing better safety and training programs, preventing fraud, establishing return-to-work protocols, and more.
Effectively reducing business risk requires the expertise of a knowledgeable team of experts – often far beyond the bandwidth of smaller companies. Penalties for even a single mistake on a simple form can cost up to thousands of dollars. This is another area where you can turn to your PEO to be your lifeline.
Payroll and related tax administration are another notoriously tricky area of running a business. Your PEO partner can completely handle your payroll function, eliminating costly errors and creating happier employees in the process.
Want to Know More About PEO Solutions?
As a PEO accredited by the Employer Services Assurance Corporation (ESAC) and certified by the Internal Revenue Service (IRS), Lyons HR can be a go-to source for more information on how to keep your employment costs under control as you stay competitive and grow your business – in the areas described above, and more. Read our related posts or contact us today to learn more.