In order to attract and retain top talents, it’s important for employers to distinguish themselves through competitive salary and benefit packages. The problem is, simply sourcing the best benefits can feel like a full-time job unto itself. And that’s to say nothing of the ongoing work of benefits administration, fielding questions from employees, and more. These core HR functions, while essential, can also be incredibly taxing.
As such, it’s no surprise that more and more small and mid-sized businesses are outsourcing these responsibilities to professional employer organizations, or PEOs. Simply put, PEOs exist to help small business owners and HR teams handle routine aspects of benefits administration and compliance, freeing more time to focus on things like strategy, employee development, customer service, and beyond.
Why Work with a PEO?
Choosing to share certain responsibilities with a PEO can yield a number of noteworthy benefits for your business. Examples of these benefits include:
- Benefits cost less. A PEO typically manages the benefits for a huge number of employees, likely hundreds of thousands. This increases their buying and negotiating power, enabling PEOs to secure high-quality benefits for lower costs. This benefits your employees, and it benefits your own bottom line.
- Assistance with worker’s comp. In some industries, handling worker’s comp claims proves complicated and challenging, requiring a huge amount of the HR team’s bandwidth. A PEO can help you manage worker’s comp claims and also implement measures to minimize the number of claims you get (including basic workplace safety protocols).
- Expertise on-demand. Even the best HR pros can benefit from seeking a second opinion or soliciting outside expertise. A PEO can provide you with peace of mind, as you rest assured that there’s always someone you can talk to in order to navigate the complexities of compliance or employee relations.
- Range of services. PEOs can provide a full range of services, tailoring their offerings to the needs of your HR team. Some of the customized services you can receive include employee handbook development, payroll, employee investigations, and the list goes on.
- Faster growth. The expected annual median growth for companies that use PEO services is 40 percent greater than businesses that don’t. In other words, PEOs can provide measurable, bottom-line improvement to your business operation.
- Lower employee turnover. For companies that use PEOs, the annual employee turnover rate is between 10 and 14 percent less than with businesses that don’t use PEOs.
Share HR Duties with Your PEO
HR companies benefit from back-end support and on-demand expertise. Partnering with a PEO not only provides these benefits, but it also ensures a broader range of solutions for your employees. We’d love to talk with you further about the advantages of working with a PEO, and to walk you through the PEO consultation we offer here at WhiteWater Consulting. Reach out to us at any time!
