Businesses must constantly attract and retain good workers and this requires a lot of time and effort. Many smaller operations may find the business of dealing with human resources an issue because these duties divide their time, taking them away from more pertinent matters. It requires filing loads of paperwork, dealing with employee issues on a routine basis, and, of course, taking care of payroll and other employment-related matters, all of which can absorb a lot of time.
By partnering with PEOs (Professional Employer Organizations) that can aid businesses by providing a comprehensive human resource department through outsourcing can help small businesses by dealing with concerns relating to human resources, employee benefits, payroll, and all regulatory compliance.
A PEO is a co-employment arrangement meaning that the PEO contractually, shares certain employer responsibilities with the company. There’s a need for peo insurance that addresses many of the common issues that may crop up between an employer and his or her employees.
The PEO works to optimize HR practices for their client
PEOs are a great way for small businesses or entrepreneurs to lower their employer costs and are a financially viable option because they help to lower the cost of employee health insurance, unemployment insurance, and human resource administration. PEOs are companies that, in essence, hire your employees to work for your business.
Managing human resources is a necessary function for any company that has employees, regardless of the size of the operation. However, hiring an HR manager or designing an HR department doesn’t always make sense for many business owners. When looking to outsource human resources functions, companies have the option of going with a PEO. They could also decide to enlist a Human Resources Outsourcing (HRO) business.
Many business owners may determine that a PEO is less service-oriented than an HRO, with as many as 30 clients assigned to each employee. An HRO organization generally acts as a partner with the company, providing advice and guidance on compliance issues and organizational strategy.
Is a PEO the right choice for your company? You must realize that there are certain liability issues that must be addressed as well. Speak to an agent familiar with Professional Employer Organizations, and your need for peo insurance, to determine what will work best for you and your current circumstances.