[aa_subtitle_display]Professional Employment Organizations, or PEOs, can provide a multitude of services to your company and can be an exponential component in the success of your business. These days, PEOs can often be confused with temporary employment agencies, and it is important to understand the difference between the two. A temp agency can provide or lease an employee to a company on a temporary basis to perform and complete very specific projects and tasks. A PEO however, is a “co-employer” relationship, where the PEO is responsible for managing your companies HR needs.
Services that you can expect a PEO to provide include processing of payroll and employment taxes, processing of any workman’s compensation or unemployment claims, negotiate and attain competitive employee benefits, and sponsor and manage employee wellness programs, just to name a few.
Although Professional Employment Organizations have been around since the 1980’s, many companies today are still unaware of their prevalence, or are unsure as to how they can benefit their business.
One way PEOs can benefit your business is by reducing the number of non-productive work hours being performed by employees. By outsourcing your company’s HR responsibilities and needs to a PEO, you will be able to better utilize and more efficiently delegate responsibilities to your on-hand staff by reducing the administrative burdens that may have been afflicted upon them prior.
Entering into a partnership with a PEO is also a great way to attain competitive benefits and lower insurance rates for your employees. Insurance rates, especially for small and mid-size companies can be outrageous, and employers often do not have the power to negotiate lower rates for their employees. When you enter into a “co-employer” contract with a Professional Employment Organization, you have just become part of a much larger pool of employees with far greater options for competitive benefit packages for your staff. The PEO will have the power to then negotiate and attain much lower health insurance rates for your company and employees.
In addition to being able to provide lower health insurance rates for your company, PEOs can also benefit your company by sponsoring employee wellness programs. With the skyrocketing health insurance rates these days and overall decline in our general health, it is much less expensive to prevent an illness than it is to treat one. This is why so many PEOs have begun implementing physical and mental health initiatives that provide employees with numerous resources to help them improve and lead a healthier lifestyle. Employee health programs may include but are not limited to healthy eating habits, health risk assessment, smoking cessation, and lifestyle coaching. Utilizing employee wellness programs and inspiring staff to be healthier overall, ultimately helps you create and retain valuable and happy employees.
While the above mentioned are just a few of the benefits to entering into a partnership with a PEO, the list is endless. A “co-employer” relationship with a Professional Employment Organization truly is the perfect pairing. You and your employees will be allowed the time to focus on managing the pertinent and crucial day to day tasks of your business with the peace of mind that all of your HR needs, and then some, are being handled by powerfully capable, intelligent professionals.