Professional Employer Organization (PEO) is a cost-effective way of outsourcing the management of human resources, payrolls, employee benefits, and worker’s compensation. Typically, a PEO serves and works as a professional employer on behalf of their clients. They offer better rates for a company and save time and money.
PEO Services: What Can They Do For You?
Hiring a PEO company comes with many benefits to your business. It helps you make more informed decisions that will foster the growth and scaling of your business.
PEOs are mandated to do the following:
- They act as employers for their members, handling comprehensive HR services, including HR compliance, employee benefits, risk management, payroll processing, and attendance management.
- Help in employee recruitment services and the reduction of employee turnover
- Help businesses reduce the liability of payment of payroll taxes, wages, and state unemployment taxes that overwhelm many businesses.
- PEO comes as a time saver, helping you to focus on other potential areas of your business
- PEOs relieve the burden of workers’ compensation administration
What Can’t They Do
PEOs have their limits to your business. They will not do the following
- Make hiring and firing decisions on your behalf
- Take control of your business
- Supply labor to worksites
- They cannot dictate the hourly rates or schedules
Benefits Of The Outsourcing HR Function To A PEO
Most businesses that outsource their HR functions experience the following advantages.
Competitive advantages and health insurance. A PEO company can negotiate more affordable insurance benefits and purchasing power for small businesses.
Compliance. PEO offers improved compliance as they stay up-to-date with the ever-changing business regulation; hence your company remains compliant.
Faster growth rate. Business administration can focus on other important matters of the business, which fosters growth.
Positive ROI. Thanks to the PEO, if there is faster growth, there is a positive ROI from the business.
What Business Can Benefit From PEOs
PEO is a great advantage for small to mid-sized businesses, and a good fit for almost all industries like
- Real estate and property management
- Health services
- Legal services
- Securities brokers and dealers
- Manufacturing etc.
Finally, if you want to strengthen your business, PEO is the way to go. Additionally, small businesses benefit a lot from PEOs as they may not have the breadth of HR expertise and other system capabilities. But all in all, getting experienced PEO in Denver CO, is an added advantage to your business.