First of all, choosing the right type of PEO for your company is crucial. Are you looking for a full-service PEO that will assume all HR responsibilities, file payroll, taxes, and workman’s compensation claims? Or are you interested in more of an Administrative Services Organization (ASO) where they too can carry out typical HR services and file taxes, but taxes will be filed under your Employer Identification Number where you will hold all employment liability. Finding the right PEO for your business is the first step in avoiding work related aggravations.
Next, communication is key! It is absolutely imperative that clear communication be used with your PEO to avoid any misunderstandings. What are your expectations of your PEO? Will you be handling any or all data entry, and are they to be solely responsible for tracking that data? Or do you expect your PEO to handle all data entry and tracking? PEOs can often tailor their services and packages to meet your needs, but without clear and concise direction from you, it will be near impossible for your PEO to live up to your silent expectations, in turn creating a very stressful working relationship.
Lack of trust in your Professional Employment Organization can also quickly sour the business relationship and cause unnecessary difficulties. PEOs are professionals specifically equipped with the knowledge and skills to be able to handle your HR needs and responsibilities, often times beyond your own capabilities. Withholding any information from them or harboring false fears that they may be withholding information from you can not only ruin the partnership, but also stall the growth of your business. This is why it is so important that you have confidence and feel safe with the PEO you choose upfront, and keep those open lines of communication!
Partnering with a PEO can be a tremendous advantage to your business in so many ways. They provide countless valuable HR services at a fraction of the cost that hiring an on-site, full time HR employee or team would require. By taking the time to think through your expectations, research and choose the proper PEO for your company, and keeping open communication and trust with your PEO, you can avoid many (if not all) of the typical headaches businesses face today when outsourcing responsibilities to outside professionals.