Why Consider a Professional Employer Organization?

Small and medium-sized businesses may be the engine of the economy, but that doesn’t mean that every new venture survives and thrives to become a large company. Operational issues aren’t usually the stumbling blocks for new businesses as they expand; rather, it’s often the back office logistics. Having only a few employees is relatively easy to manage when it comes to human resources functions, but when a company grows, the challenges in these areas tend to increase exponentially. Spreadsheets, hand written pay checks and lack of official HR policies can quickly  change from quaint to a liability. At the same time, with growth comes the need for new hires to meet customer demand, and without an experienced and connected recruitment team, these new employees may be harder to find, less qualified and more expensive than anticipated. Expanding companies also run into increased complexity when it comes to labor law compliance and programs such as Workers’ Compensation.

Big companies face many of the same challenges, but they are usually at the stage where they have extensive human resources departments in place. These professional teams are capable of covering anything needed, ensuring that senior management is able to focus on operations instead of trying to resolve back office shortcomings. Smaller companies typically lack these in-house HR resources, but they can have access to the same expertise and capabilities by working with a PEO (professional employer organization).

What services do PEO firms offer their clients? In general, they provide anything to do with HR or even IT functions—the kinds of positions and capabilities that require expertise and specialized training but aren’t directly involved with operations. For example:

    1. Administration of employee benefit programs.
    2. Workers’ Compensation policy administration, claims, safety training courses, safety compliance and audits.
    3. Payroll services including online payroll entry, employee time and attendance tracking, tax payment and filing, Paycard capability is offered as well.
    4. General human resources functions such as staff training and development, creation of defined job descriptions and employee handbooks, compliance with applicable labor laws, recruiting and background screening.

By partnering with an experienced PEO company, a small business has access to the same expert HR resources that large, mature corporations have—without the expense and distraction of staffing and equipping their own in-house teams. This provides the competitive edge that allows entrepreneurs to retain their experienced staff, recruit the best new people to build their production teams and ensure that they are fully compliant with all labor laws and safety regulations. Senior management is able to focus its energy and attention on operations, allowing the company to succeed and grow, rather than risking loss of momentum while struggling to keep up with back office details.

If you have questions or would like more information about the topics discussed in this article, please contact our HR Department by clicking here. Please be sure to reference the title of the article in your inquiry.

This article was sponsored by National PEO, LLC. National PEO is a leading provider of PEO services to hundreds of companies all over the US. Let us handle the burden of Payroll Services, Benefits Administration, Worker’s Comp, and Human Resources for your company. Contact us today to request a quote!

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