How does a Professional Employer Organization (PEO) benefit your business? An explanation of PEOs.
Looking for a solution to solve your HR headaches? Look no further than Professional Employer Organizations (PEOs)! These wonderful HR outsourcing firms step in when business owners find themselves overwhelmed with HR-related responsibilities.
Approximately 200,000 businesses across various industries in the United States have sought support from PEOs. Typically, these are small to midsized companies that desire to focus on business development without being bogged down by HR tasks.
If you're juggling daily HR duties and seeking relief, partnering with a PEO might be the answer to all your worries. But what exactly is a PEO and how can they help your business thrive? Let's find out!
What is a PEO?
A PEO is a HR outsourcing company that enters into a co-employment agreement with your business, taking over HR-related aspects that you may find challenging to handle alone, especially when expanding into foreign markets. Through this agreement, the PEO becomes responsible for HR processes like payroll, benefits, workers' compensation, and local compliance. Your organization maintains the control over the day-to-day operations of your employees and business.
Do You Need a PEO?
Running a business requires your undivided attention, and handling HR and payroll can be time-consuming. If you're grappling with limited resources or financial constraints to provide attractive benefits for your employees, a PEO can save the day. Partnering with a PEO means more time to focus on growing your business – after all, who needs more paperwork when there's a world to conquer?
In fact, research by the National Association of Professional Employment Organizations reveals that companies using PEOs grow at a rate of 7% to 9% faster than those that don't! Moreover, working with a PEO can slash expenses associated with maintaining an in-house HR team.
How a PEO Can Help Your Business
When you decide to work with a PEO, you'll sign a co-employment agreement (also known as a co-employment relationship). Through this agreement, you and your PEO service provider share responsibilities and liabilities. Generally, you remain in charge of managing your company's overall direction and business operations. In return, your PEO service provider offers a comprehensive HR and benefits package to your employees.
Don't worry – you'll still have control over key HR decisions, such as deciding on benefits to offer and who to hire. Your PEO service provider takes care of the day-to-day administrative duties.
Minimally, a PEO can assist with employment benefits and administration, payroll processing, HR compliance, employment tax compliance, risk management, talent recruitment and onboarding, worker's compensation administration, and other HR tasks. Plus, your PEO can offer guidance on making crucial employment-related decisions.
When a PEO Can't Help Your Business
It's essential to know what a PEO can't deliver before you partner with one. This will help you determine if a PEO is the right choice for your business.
A PEO will not make hiring and firing decisions on your behalf, nor will they control your business operations. Additionally, a PEO cannot fully mitigate global labor law and taxation risks. However, a PEO can ensure your workforce is paid on time and receives necessary benefits if you have legal entities in target countries but lack dedicated resources to serve your employees.
How Our Company Can Help Your Business
Our company offers PEO services to handle all your HR needs and make your life simpler. Our PEO services provide comprehensive support for talent recruitment and management, payroll, benefits, HR, risk management, and local compliance, among other things.
Still unsure about whether a PEO is the best solution for your business? Consult with our experts for free to put your doubts to rest!
Partnering with a PEO can offer an array of benefits, from cost savings, risk reduction, and time savings to employee engagement, resilience, and growth. Don't miss out on the opportunities that a PEO can bring to your business!
A PEO can alleviate your business's HR headaches by taking over HR-related aspects, such as payroll, benefits, and local compliance, enabling you to concentrate on growing your business. If you're struggling with time-consuming HR tasks and limited resources to provide attractive benefits, partnering with a PEO can help save both time and money, allowing your business to thrive.
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