As a business owner, you're focused on one thing — growth. But there's a problem. It's difficult to focus on growth when you have to deal with all of the internal complexities like HR. You're not alone. 81% of small business owners admit to handling HR internally. Unfortunately, 34% of those same business owners report annual payroll issues, and 23% lose out to talent due to HR mismanagement.
Are you one of the 30% of business owners who feel nervous about their HR systems because you simply don't have the time to handle all of those compliance pitfalls and payroll issues?
Here's how a PEO could help you save time so you can get back to doing what you do best — growing your business.
What is a PEO?
A Professional Employer Organization (PEO) is a comprehensive HR outsourcing solution that leverage co-employment to help businesses handle their day-to-day human resources needs. That means that PEOs will handle benefits, payroll, workers' compensation, and even compliance for your business. In fact, they are heavily vested in the success and compliance nature of your company due to a legal tool called co-employment.
What is co-employment?
PEOs have a secret sauce that helps them save you money on benefits and save you tons of time handling your day-to-day payroll and HR needs. Co-employment is a legal tool that allows PEOs to take over your HR and payroll services AND makes them share liability with your business to help shelter you from compliance issues.
4 PEO Advantages That Can Save You Time on HR
1. PEOs Handle Payroll
Payroll is the most significant HR problem child for most small businesses. Did you know that 49% of workers will begin looking for a new job after just two small payroll errors? PEOs handle your entire payroll department. That means no more dealing with changing payroll laws, dealing with day-to-day payroll inputs, and no more calculating paychecks. Your PEO will handle all of that.
Most PEOs work with hundreds of other businesses just like yours. That gives them the experience and know-how to tackle some of the more nuanced payroll issues.
2. PEOs Choose Your Vendors
With a PEO, you don't actually choose your benefits vendors. At first, this may sound a little off-putting. But, remember, PEOs are managing hundreds (if not thousands) of other businesses. So, they can leverage ALL of the employees at ALL of those businesses to score massive discounts on benefits packages. So, not only are you saving time dealing with vendor selection, but you're saving money, too.
3. PEOs Assist With Workers' Compensation
Dealing with workers' compensation is often business owners' least favorite component of HR. Injured workers, claims, and evidence gathering can be awkward and difficult if you have a close relationship with your workers. Your PEO will handle all things workers' compensation-related outside of legal matters. This saves you a ton of time and keeps you free from any workers' compensation-related issues.
4. PEOs Keep You Compliant
This is by far the biggest time-saving bucket. HR compliance is incredibly tricky. Rules, laws, and procedures change year-to-year, and keeping up with all of those nuances can be a time sink for business owners. Not only are PEOs invested in the HR world, but they're invested in your company's compliance since they share some liability with you. This means that PEOs will work tirelessly to keep you compliant. So, go ahead, skip reading that latest HR law news. Your PEO has it covered.
Don't handle HR on your own. PEOs can help you scale your HR needs and score better benefits deals without you having to lift a finger. You didn't build your company to focus on HR. PEOs let you focus on what really matters — your business.
Are you interested in finding out more about how PEOs can help your business? Check out our free PEO comparison tool.