Bad news: Employee Benefit News identified 15 human resource challenges businesses will face in 2018.
Good news: A Professional Employer Organization (PEO) can handle all but one of the 15:
- Republican administration and federal issues
- State and municipal issues
- Workforce planning
- Cyber breaches and data security
- Workplace violence and active shoot situations
- Employee leave
- Benefits and the Affordable Care Act
- Employee well-being and mental health
- Employee handbooks
- Drug testing and substance abuse
- Diversity and inclusion
- Pay equity and salary history bans
Can you pick out the only ONE a PEO can’t help with?
Partnering with a PEO in a co-employment relationship immediately gives small and medium businesses benefits normally only available to large employers. Here are just a few ways PEOs address HR’s biggest challenges of 2018 and the advantages businesses gain from the relationship.
PEOs save money
Because a PEO is classified as the actual co-employer for your company and pools the employees from all companies it represents, PEOs leverage economies of scale to reduce expenses like health insurance, workers’ compensation insurance and retirement plans. Often, a PEO’s workers’ compensation policy has lower rates than you get on your own. Plus, instead of having to pay your individual policy quarterly in advance, a PEO administers these costs on a monthly, pay-as-you-go system freeing up capital for your business.
PEOs save time
Almost all companies struggle with having enough time to get everything done. This effects smaller businesses the most where employees tend to wear many hats and multitask to meet expectations. Start-up businesses and even established businesses often find their finances in a precarious position. Hiring a person for every position needed to run a company just isn’t feasible. Outsourcing to a PEO means working smarter and improving overall efficiency of operations. With a PEO meeting critical needs such as payroll, benefits administration and compliance, your employees can devote their time and knowledge to growing and developing the business.
PEOs reduce risk
We already talked about how a PEO reduces the risk of losing benefits like health insurance and workers’ compensation by reducing costs. In the co-employment relationship, the impact of regulation changes and compliance in general are reduced. Your PEO will conduct compliance training for employees and supervisors in the challenging areas of harassment/discrimination, safety and recordkeeping. PEO compliance experts stay current with the ongoing changes to labor laws, regulations and health care to ensure your business doesn’t get caught in noncompliance. This alone takes hours of time and on your own, takes precious time away from focusing on your company’s core competencies. Outsourcing to a Professional Employer Organization eases the burden of meeting 2018’s HR challenges both financially and productively. PEO Consultants analyzes your business’ HR needs and helps you find the PEO perfect for your situation. Contact us at 888-623-3240 or online for more information.