You may not have heard of the benefits of a PEO, but working with a PEO can make a dramatic difference to your business operations, especially if you have a small or medium-sized business (SMB).
In this article, we’ll talk about PEOs, what they are and how they work. Next, we’ll tell you about some of the major benefits of a PEO for your business. Finally, we’ll recommend getting in touch with the best PEO in Houston, TX for your business.
What Is A PEO?
A Professional Employer Organization, or PEO, is a company that offers solutions to the staffing needs of small and medium-sized businesses. It frees your business from many of the HR tasks that would consume time and financial resources. The result is a higher level of service and control, offering personalized plans and benefits for your employees based on the needs of your company.
Why Choose A PEO At All?
Many businesses don’t realize that the cost of HR services can be a major expense. And if they do realize it, it may be after significant expense and time wasted on HR and employee management. For small and medium-sized businesses, time and resources are precious and it’s important to direct them into the company’s operations. And, if you’re looking for staffing solutions to find the right fit for your company, you may not have the time to put in place a hiring process and all of the paperwork involved with that.
So, with a PEO, or professional employer organization, you can outsource your HR functions without relinquishing any control of your business or having to commit full-time staff. In fact, PEOs work with other organizations, so they can offer even more benefits for personnel depending on your business’ requirements.
What Are The Benefits Of A PEO?
1. Free Up Time, Finances and Executive Resources
The most tangible benefit for a business using a PEO is that it reduces yearly administrative costs and provides HR solutions that free up company time and executive decision-making for more pertinent tasks; this empowers the growth and revenue generation goals of your company
2. Provide Cost-Effective Employee Benefits
With a PEO, you’re able to offer better benefits to your employees while minimizing the cost. That’s because they typically have lower overhead and can provide more competitive rates for quality benefits packages. Since PEOs work with a pool of employees from the businesses that use them, they are able to negotiate for better rates. This includes life insurance, medical, vision and dental.
3. Save Time During The Hiring Process
Because PEOs can transfer a candidate from resume stage to interview stage effectively, without using your company’s executive resources, it allows more time for decision-making about the employee. Consequently, this means less time wasted on standard hiring processes. This cuts down the total hiring time for an average company drastically.
4. Effectively Manage Compensation and Payroll
PEOs handle all of the payroll and compensation administration, so they can help keep track of employees’ pay, deductions and taxes. This, again, helps you save time and money on paperwork, since the PEO negotiates insurance premiums, manages sick days, PTO, and workers’ comp, and takes care of claims and workplace accidents for you.
5. Offer More Flexibility and Control of Employee Careers
Some PEOs take care of particular benefits that are important to the members of their management teams. These can include things such as health care or retirement plans. This gives companies greater control over those benefits and flexibility in how they’re implemented within their company framework. It also enables businesses to customize their benefits package for each individual employee. This can lead to higher retention rates because the company is more focused on what’s most beneficial for each employee.
The Benefits Of Using A PEO In Houston, TX
ElevationHR is a comprehensive human resources management company and PEO in Houston, TX. We make it effortless for your business to handle all of its HR, talent acquisition and recruitment needs. Get in touch with us today at (281) 353-8847 for more information. We can show you how we can help grow and strengthen your business.