Professional employer organizations provide a comprehensive range of HR solutions and technology to help businesses gain a competitive advantage.
As business leaders continue to face headwinds, including record numbers of employee resignations, labor shortages and economic challenges, many may feel overwhelmed, frustrated, and fatigued as they strive to keep their companies afloat. Although leaders have taken significant measures to address the needs of their companies and workforce, one of the most strategic decisions they can make is harnessing the power of a professional employer organization (PEO).
PEOs provide a comprehensive range of human resources solutions and technology to help businesses gain a competitive advantage. By outsourcing HR to a PEO, it not only helps businesses take care of their people, but it also provides a team of HR professionals that strategically guides and supports leaders and in-house HR practitioners. PEOs can serve as critical lifelines for companies, standing shoulder to shoulder with them to help navigate choppy waters and emerge more successful.
The advantages of aligning with a PEO can be categorized into four key areas:
- Administrative relief. As leaders face myriad employer-related tasks and tedious HR responsibilities, little time is left to focus on other aspects of running the business. PEOs provide valuable administrative relief that enables leaders to concentrate on their areas of expertise to strategically grow the company. PEO support with HR administration includes:
- Payroll processing and administration
- Payroll tax filing on wages, including W-2s and W-4s
- Payroll record management/maintenance
- Time and attendance tracking
- Employment eligibility verification
- Paperless new-hire onboarding
- End-to-end benefit plan management/administration
- Better benefits. While companies look for ways to attract and retain top talent, especially in a job seeker’s market, one key method is to offer comprehensive employee benefits packages. PEOs can be the differentiating factor by providing companies with access to Fortune 500-level benefits that appeal to the workforce. Benefits that most PEOs offer include:
- Medical, dental, vision, and prescription drug coverage
- Flexible spending accounts
- Health savings accounts
- Basic term life insurance
- Basic disability insurance
- Employee assistance programs
- 401(k) retirement plans
- Reduced liabilities. With the number of employment laws and regulations increasing exponentially, it can be difficult for business leaders to stay up to date. PEOs offer peace of mind by helping companies remain in compliance to reduce employer-related liabilities and avoid costly fines that can impact the bottom line. Some areas that PEOs help with include:
- Local ordinances, and state/federal employment laws
- Workers’ compensation coverage
- Unemployment claims resolution
- Employment practices liability insurance
- Hazard and safety review/training
- EEOC services
- Employee relations
- Robust talent management. Leaders who have adopted a philosophy that people are their greatest asset recognize the need to have a robust talent management program. As companies face a talent crisis, now is the time to implement or enhance talent management programs, which can be accomplished through a PEO. Valuable program components that most PEOs offer are:
- Company culture development
- Recruiting and outplacement support
- Compensation services
- Performance management support
- Training and development tools/resources
- Advanced HR technology
When companies enlist the services of a PEO, they are gaining a trusted advisor to help them focus on their core competencies by offering administrative relief; attract and retain top talent with better benefits and talent management programs; and boost the bottom line with reduced
liabilities.
Pete Hinojosa is director of thought leadership with Insperity, a leading provider of human resources offering the most comprehensive suite of scalable HR solutions available in the marketplace. For more information about Insperity, call 800.465.3800 or visit insperity.com.