Key Benefits of Partnering with a PEO
Running a small business comes with its unique set of challenges, and as your company grows, so does the complexity of managing human resources, employee benefits, compliance and risk.
One solution to reduce the burden of navigating these challenges is to partner with Professional Employer Organizations (PEOs). PEOs offer comprehensive solutions to streamline HR operations and are a cost-effective alternative to hiring in-house staff. Below, we’ll discuss some of the key benefits of hiring a PEO to help you assess if outsourcing to a PEO is right for your SMB.
What is a PEO?
A PEO is a third-party outsourcing provider that manages HR, employee benefits, payroll and tax administration, insurance, worker’s compensation and other administrative functions for SMBs. By entering into a co-employment relationship, the PEO becomes the employer of record for tax and insurance purposes.
Benefits of Engaging a PEO
- Access to comprehensive benefits: Due to the economies of scale generated through the co-employment relationship, PEOs can typically deliver a robust, fully integrated HR software and services solution while also providing unique, Fortune 500-style benefits otherwise unattainable for small and medium-sized businesses. This can make room for your organization to attract stronger talent, streamline processes and reduce much of the administrative burden and liability associated with human resources.
- Expert HR management: The best use of everyone’s time is when we all focus on tasks in our wheelhouse. When you outsource services like HR, not only are you streamlining operations, but you are also gaining access to a team of experts who specialize in helping businesses navigate complex employment laws, regulations and compliance requirements.
- Cost savings: Another benefit resulting from economies of scale is that PEOs can often negotiate better rates on benefits and insurance. Those savings are then passed on to your SMB. Moreover, outsourcing HR tasks reduces the need for an in-house HR team thereby saving on staffing costs as well.
- Improved efficiency and technology: PEOs leverage advanced HR technology to streamline human capital management processes such as payroll, time and attendance tracking, employee onboarding, performance management and others.
In addition to these benefits, working with a PEO enables SMBs to redirect their time, energy and focus toward other core business functions and prioritize growth initiatives without the burden of managing HR tasks.
To learn more PEOs and how to find the right one for your SMB, get in touch with our team at The OIS Group. As consultants and PEO brokers, we offer custom human resources, employee benefits and insurance solutions for small- and mid-sized businesses looking to maximize their time and resources.
