Getting Started with a PEO: What You Need to Know
When you own a small business, you fulfill many roles, often in the course of a single day. But even the most competent and energetic small business owner can’t be expected to be an expert on all things necessary to successfully run a small business. One area in particular where business owners often lack experience and expertise is human resources.
Human resources is about more than just hiring people. It is also concerned with employment law, following government regulations, time and attendance and managing employee benefits. These are all time-intensive processes that may require years of experience to implement properly. Many business owners take control of human resources by partnering with a professional employer organization, or PEO.
How a PEO Can Help Your Business
To succeed as a business and retain the most competent employees, a company has to be prepared to offer employee benefits, ensure that payroll is always on time and accurate, and make certain that the business is in complete compliance with workers’ compensation, OSHA and other applicable laws. Yet hiring experts to take care of these functions in-house is often impractical or impossible for a smaller business.
That’s where a PEO steps in. The costs of HR processes and administration of employee benefits is increasing, and using a PEO allows businesses to provide better benefits through a solution that is far more cost-effective than hiring full-time employees to handle these critical tasks. Furthermore, state and federal regulations are constantly changing, and keeping up with those changes is an enormous task. A PEO has the necessary expertise in dealing with the many processes and regulations surrounding hiring, payroll, and administration of benefits.
Benefits of Working With a PEO
There are countless benefits of working with a PEO. Here are just a few of them:
- Partnering with a PEO frees you, the business owner, to focus on core business processes rather than dealing with the many demanding tasks involved in human resources administration. A simple tax or payroll error can have devastating consequences to a small business, but when you use a PEO, experts with years of experience take care of these things. And it can pay off. A study by McBassi & Co. found that small businesses that use a PEO grew almost 10% faster than small businesses that did not use a PEO.
- Today, businesses may be spread out over multiple states. Many business owners are not prepared to handle the numerous logistical and regulatory hassles of having employees in different states. The state-to-state differences in workers’ compensation rules alone can be overwhelming. With a PEO handling payroll, benefits, workers’ comp, and other HR processes, you can focus on running and expanding your business.
- Your business may be fairly new, but you need to hire great employees to maximize its potential. But how can you offer benefits that will make your company attractive to top talent? When you work with a PEO that administers employee benefits, you take advantage of the numbers from the many other companies the PEO works with. A great PEO can negotiate for better healthcare rates, and help you offer benefit packages that make you more competitive with larger corporations in terms of hiring.
How SourceOne Partners Can Help You Find a PEO
When you partner with a PEO, you have the opportunity to take advantage of Fortune 500 benefits, you can lower your expenses, and you can be confident that your business is in compliance with the many regulations that apply to it. SourceOne Partners has over 50 years of combined experience in the PEO and payroll industries, and partners only with certain PEO companies that meet its high standards.
SourceOne Partners makes it as easy as possible for you to choose your PEO. We have done all the necessary background research to be able to review your specific situation and help you find the PEO that is right for your needs. Choosing a PEO can be complicated, but SourceOne Partners takes the pain out of the PEO selection process, so you can find the right PEO and focus on doing what your business does best. Call us today at 561-674-0748 or contact us online.