When it comes to running a business, time and money is everything. From talent recruitment and retention to the development of an attractive benefits package, there are countless challenges that Human Resources (HR) professionals face on a day-to-day basis. When these responsibilities start adding up, your HR department can become overwhelmed, resulting in decreased productivity.
The good news is that you can lessen these burdens without having to hire full-time employees to take over. Instead, rely on a professional employer organization (PEO). A PEO is essentially an organization that forms a co-employment relationship with a company and assumes various employer-related HR responsibilities, such as employee benefits and payroll.
Top Benefits of PEO Consulting Services
Outsourcing your HR challenges to a PEO consulting service can provide your business with a variety of advantages. Some of the most substantial benefits of acquiring PEO consulting services include the following:
1. Provide Employees with Cost-Effective Benefits
Administrative and regulatory limitations can make it difficult and costly to provide employees with the benefits that they need and deserve. Through a PEO relationship, your business can become better equipped to offer employees with access to comprehensive and cost-effective benefits. There are a number of PEO-sponsored plans available, including medical, vision, and dental. Life and disability benefits, as well as flexible spending accounts, are also obtainable.
With the PEO acting as the plan sponsor, all administrative tasks, including enrolling employees in plans, is left in their capable hands. You can also count on your PEO to effectively communicate the importance of enrolling in these plans to your employees. Your PEO will also open up a line of communication to answer important questions pertaining to employee benefits.
2. Reduce Payroll-Related Costs
Payroll processing and other accounting expenses can add up quickly. By reducing these types of costs, you can relocate the money in other areas of the business where it can be more efficiently used. A PEO can help you automate the payroll process for greater convenience. The professional employer organization will also handle all of your business’s withholdings, garnishments, and W2s.
When comparing PEOs, be sure to choose an organization that offers payroll services with a simple fee, instead of charging separate fees for each individual payroll service. This can help simplify the entire process and make it more affordable for your company.
3. Gain Access to Retirement Savings Plans
A PEO can help you gain access to retirement savings programs, such as 401k plans. Not only are these types of retirement plans attractive to new talent and can aid in recruitment, but they can also be beneficial to existing employees and improve retention. As the plan sponsor, your PEO will manage all related administrative tasks and regulatory requirements, such as compliance testing and distribution processing.
4. Stay in Compliance with HR Laws & Regulations
Employment law is a complex field that continually changes and evolves. It can be highly difficult to keep up with these changes, while also running other areas of your business. A PEO can provide you with guidance and advice to help ensure that you do not face any compliance issues that could result in hefty fines.
5. Acquire Workers Compensation Coverage
Workers compensation can be time-consuming and costly due to insurance premiums and claims management. A PEO can provide your company with workers’ compensation coverage, as well as handle all associated audits, compliance issues, and paperwork. Your PEO will also help you mitigate risk to help keep expenses low.
6. Minimize the Fallout From Lawsuits
Despite how careful your business is, there is always a risk that your company could face a lawsuit that could potentially cause financial ruin. To help minimize legal expenses, it is important to gain better control over employer liabilities. As a PEO shares liability relating to certain employment-related claims, you can trust your professional employer organization to efficiently mitigate potentially expensive settlements and provide the legal expertise needed to handle all types of claims.
7. Get Assistance with Talent Recruitment
Employees come and go, leaving important positions wide open in your company. To prevent disruptions in your operations, it is important to fill these positions with qualified and capable candidates. Unfortunately, many business leaders lack the time needed to vet and hire the right talent.
When you hire a PEO, you can trust the organization to spend time and money placing job ads, interviewing candidates, performing background checks, and hiring the right people. PEOs offer a wide range of services to help with this process, including recruitment assistance. An experienced recruiter knows how to read people and can help you recruit the best talent possible.
Inquire About PEO Consulting Services
There are countless benefits to acquiring PEO consulting services, including savings and peace of mind. For more information about the benefits of PEO consulting services or to request a quote, contact the PEO consultants at BenefitCorp today.