The success of a business is directly tied to its ability to focus on its expertise. When management is able to concentrate solely on the competitive advantages that set apart their service or product, that organization thrives. Alternatively, when time and energy is taken up by various outside tasks and concerns, growth and success is inhibited.
Managing employees, staying up to date on compliance, and attending to other regular HR responsibilities often draw a business leader away from main priorities and goals. A trusted Professional Employer Organization can take over these essential but tedious tasks that slow a business down, allowing you to focus on your expertise and achieve business growth. In fact, a small business that partners with a PEO grows 7 to 9% faster for a number of reasons.
There’s no question that attempting to stay up-to-date on the constantly changing regulatory landscape is a frustrating experience. Considering OSHA changes, workman’s comp, EEOC complaints, and overtime law changes is enough to make one’s head spin. Simply put, HR compliance can be distracting. While tedious and filled with paperwork, one small mistake in any of these areas can mean a devastating fine or lawsuit that can fatally injure the bottom line of any organization.
A PEO completely takes this burden off your shoulders. With deep experience on present regulations and constantly staying abreast of changes, the PEO accurately keeps your business in compliance on all procedures, forms, and necessary areas. Not only can you rest easy at night with this reassurance, but it allows you to better focus on your core business objectives. This is why businesses that use a PEO are 50% less likely to fail.
Maintaining a group of employees takes more than just emailing them a Christmas card each year. Trainings, evaluations, meetings, reviews, and career path planning are all important tasks essential to fostering a productive and loyal workforce. Unfortunately, these tasks can quickly fill a manager’s calendar, taking up a great deal of time. Often, they either are left unfilled or cause insufficient time for main business tasks. Dropping the ball in this area results in high employee turnover.
A business that turns these tasks over to a PEO enjoys 14% lower turnover because employees feel valued, not neglected. PEOs have proven strategies for employee training and evaluating workers, and can tailor their methods to your business model and environment. With this daily concern removed from the equation, you can focus on the specialties and strengths that grew your business in the first place.
Benefits and Payroll Administration
Joining forces with a PEO connects a smaller business to the power of a large employee base. One result of this is the ability to offer employees a more robust package of health benefits. Employees become part of a large health insurance group which improves offerings and lowers premiums. Current workers are happier this way, also making it easier to attract new talent.
Retirement benefits enjoy a similar increase in value when a PEO is in the driver’s seat. 98% of PEOs are able to offer retirement plans to employees, and participation in those plans is three times greater. This once again provides a morale boost to staff without internal management having to lift a finger.
In addition to managing these benefits, PEOs also take over all of the seemingly minor administrative HR tasks that add up. Payroll may seem like a straightforward task that can run itself once set in motion, but one error in processing can cause large problems and employee outcry. The right payroll procedures are required for your business, and they need to be utilized correctly to avoid errors in deductions, tax withholding, or direct depositing. When a PEO takes over this and other tasks, clients enjoy a 21% savings on HR administration.
A PEO Helps Achieve Business Growth
You didn’t go into business to worry about regulations, performance reviews, and payroll errors. You went into business to focus on your expertise and deliver a specific product or service to customers. A PEO exists to take over all the peripheral HR activities that are unrelated to your central business goals. By easing these worries, your time and energy can be better spent on the reasons you went into business in the first place.Business & Finance Articles on Business 2 Community