PEO…What is that? AND Why Would I Use One?
1. Relief from the burden of employment administration.
They assume a wide range of administrative functions, such as payroll processing and related tax filings, employee file maintenance and workers’ compensation claims management. PEOs also handle much of the employer-related paperwork associated with government compliance and benefits administration. Having the PEO responsible for the details of employment administration helps free business owners and other decision makers to focus on managing and growing their organizations.
2. A wide range of personnel management solutions through a team of professionals.
PEOs offer a diverse set of services that enable organizations to focus on their core competencies. PEOs deliver solutions to organizations through a staff of experienced human resources professionals. Through their team of skilled professionals, PEOs deliver results relating to human resources management, employee benefits, payroll and workers’ compensation.
3. Improved employment practices, compliance and risk management to reduce liabilities.
They facilitate the development and documentation of workplace policies and procedures in accordance with all applicable state and federal employment laws. PEOs manage required record-keeping and reporting and help focus an organization on workplace rules and employee conduct. They provide professional assistance in identifying risks to the health and security of employees, examine how to measure, manage and transfer risks, and provide management and guidance for workers’ compensation claims.
4. Access to a comprehensive employee benefits package.
This allows clients to be competitive in the labor market. Savvy executives realize that their success depends largely on maintaining a superior staff and that attracting and retaining high-quality employees is essential to a successful business strategy. PEOs can create comprehensive benefit programs, from major and supplemental health-care choices to 401(k) programs, which are essential to attracting and retaining employees. PEOs assume the burdens of finding and negotiating the benefit programs. They also handle the details of enrollment and administration. Greater access to a full suite of Fortune-500-style benefit programs allows PEO clients to become competitive in the labor market.
5. Assistance to improve productivity and profitability.
PEOs allow organizations to focus on their core competencies by outsourcing the non-revenue, time- consuming employment administration tasks. PEO services bring clarity, communication, and certainty to employees. This improves morale and increases productivity. PEOs work with organizations to develop, clarify and implement polices and procedures. PEO professionals handle the questions and issues regarding benefit plans, regulations and employment practices, and getting employees paid, and they are well-versed in the latest trends and offerings. PEOs provide a professional HR resource for managers and owners. With a PEO, executives have access to a team of experienced professionals in human resources, benefits, payroll, regulatory compliance and risk management, who can help the organization take care of employees.