A personal or professional employer organization refers to a full-service human resource outsourcing. It is also called co-employment in which a PEO handles a variety of employee management functions for a business, including payroll and administration. Since PEO strategic services might differ for one business to another, it is essential to do a thorough research and analysis before making the final plunge. To help you out, here is our guide that discusses the role and significance of a PEO in your company.
The role of a PEO in your company:
In a co-employment arrangement, the firm and the PEO share various employer duties. The PEO often handles payroll processing, payroll tax withholding and payment. PEOs are also responsible for maintaining workers’ compensation insurance, benefit administration, and counseling on human resources.
In this way, you can concentrate on managing routine business activities, such as giving consumers goods and services and determining which workers to hire or fire while PEO takes care of the rest. However, PEOs have certain limitations. They cannot make independent business decisions, nor help you with marketing or product distribution. PEOs also cannot determine parades or schedules for your employees.
Why does your company need a PEO?
PEOs may fit almost every industry. Here are some essential reasons why your company might need the services of a PEO:
Support for small businesses:
Brand-new startups and emerging businesses often take help of PEOs for managing crucial and strategic HR activities. In this way, aspiring businesses can get more time to focus on building their core strengths and capabilities like, developing and enhancing their goods and services.
Lower Employer Liability:
There are various liabilities affiliated with an employer. PEOs provide unrivaled support in unprecedented circumstances and also offer legal support in such events. As a result, you might be able to reduce your employer liabilities by coordinating with a PEO.
PEOs can also help you in providing recruitment and talent service which may include, strategic planning for recruitment and hiring. Some PEOs go beyond HR services and render data analytics and benchmarking services that give you great insights about your personnel. A professional PEO service can give you the right HR expertise and recruit highly professional candidates. Such insightful data might assist realigning your business practices in order to enhance employee retention and lower turnover.
PEOs occasionally offer safety assessments and training programs in addition to workers’ compensation insurance to assist you reduce claims and risks. Apart from this, they might help with OSHA (Occupational Safety and Health Administration) inspections.
At a glance, PEOs may play multiple imperative roles for your business. Therefore, it is critical to choose a PEO who has strong expertise and fiscal stability. Make sure the PEOs you are working with render excellent support and compliance expertise to your business. The right PEO can satisfy unique demands of your business and employees so that your organization can thrive.