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Friday November 08, 2013

What’s better than a McDonalds Burger but yet has had fewer servings?

Well, if you own a business, the answer is simple, it’s a PEO.  That’s right, PEO’s – Professional Employer Organizations offer employers a simple solution to managing employment that many businesses should consider biting into.

So it’s not quite as impressive as McDonald’s “over 300 billion served”,  PEO’s currently serve over 3 Million employee’s and hundreds of thousands of businesses – still an impressive number and growing daily. 

Unlike other HR outsourcing concepts that provide only one or two services, a Professional Employer Organization (PEO) offers a far more comprehensive approach to helping you manage your business’s human resources responsibilities. A PEO allows you to transfer the majority of your business’s cumbersome and time-consuming HR tasks to a dedicated team of HR specialists who are available to provide immediate guidance and recommendations for your specific needs.

Let’s eliminate a common misconception; PEOs are not temp firms, staffing agencies or payroll administration companies.  Instead, most PEOs offer a comprehensive package of HR services to their clients –- everything from Human Resources to Benefits Administration.  Sometimes these services are offered as a bundle; sometimes they’re offered a la carte, it really depends on the needs of the business.

A reputable PEO offers a variety of professional HR and business services. Typically, when you join a PEO, it’s an opportunity for you to outsource the bulk of your responsibilities, including:

• Employment administration
• Government compliance management
• Employee benefits
• Workers’ compensation
• Payroll and payroll tax administration
• Policies and best practices
• And Much More!
As a PEO client, you don’t have to devote your valuable time tracking payroll or negotiating rates with benefit providers. Nor do you have to hire additional staff to manage it for you.

The Co-Employment Relationship is the KEY!

The separation of HR responsibilities and liabilities that occurs when you work with a PEO is called co-employment. In this type of business relationship, your employees work for both your company and the PEO.  While you maintain direct control of the day-to-day work activities of your employees, the PEO assumes the administrative functions of HR and absorbs or shares many employer-related liabilities.  The PEO can also provide advice and guidance on all issues related to Human Resources, such as creating employee and workplace policies and procedures as well as staying current on government compliance requirements.

One common misconception is that companies that hire a PEO no longer have control over HR and employee-related decisions. But the truth of the matter is that PEO client companies aren’t required to consult with the PEO before making a decision about an employee. So instead of losing control, employers often find that working with a PEO gives them more time to concentrate on the nuts and bolts of their company. Think of it this way: Just like your employees, the PEO works for you, not the other way around.

The PEO Advantages - Beyond relinquishing day-to-day HR tasks, working with a PEO offers a variety of other advantages.
• Quality employees. Many small businesses don’t offer benefits due to the cost, only about 20 percent of small businesses offer a 401(k) package.  Without benefits, you can lose people to turnover, which kills a business.  With a PEO, small businesses are able to offer their employees reasonably priced benefits, such as 401(k) plans and medical coverage, and can, in turn, attract great workers and reduce turnover.
• Regulatory compliance. When it comes to HR, the government has a slew of rules and regulations by which you must abide. But exactly what those are and how they affect your business is not always clear. Many PEOs will guide you, step-by-step, through the often cumbersome process of ensuring your business complies with the myriad of both federal and state-specific employment laws.
• Reduced liability. One employee lawsuit could jeopardize the very existence of your business. But as a PEO client, the PEO can share some of your employer-related liabilities, taking on the risk of employment-related legal issues, thereby reducing the risk to your business.
• Buying power. When you enter into a relationship with a PEO, not only do you get to hand off the administrative responsibilities of HR, your company gets the leverage and buying power and expertise of the PEO. This means you can obtain the same benefits and in many cases lower the cost of the benefits to you and your employee’s.
In today’s economy businesses should not waste time and money, but should focus on core competencies, which means spending less time focusing on HR requirements and responsibilities, and more time focusing on their business.

If you want to focus on your business, look for a quality PEO online at  A quality PEO enables you to focus on growing your business while they handle the everyday details of employment.


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