How we work has changed quite a bit over the last decade. We’ve seen growth in the gig economy, and in the complexity of employment regulations. Even if your organization is fortunate enough to still have human resources professionals on staff, it can be difficult for them to stay up-to-date in this quickly changing world. A Professional Employer Organization, or PEO, offers your small to medium sized business the opportunity to efficiently manage these employee-based business operations.
When you partner with a PEO, you are getting the benefit of economies of scale, shared liability and expertise. As a co-employer, the PEO streamlines your business operations, and provides a safety net for your decisions. They are not there to make day-to-day decisions about how you run your company – that’s your area of expertise. A PEO adds efficiency, structure, and accountability to the backend of your organization.
Payroll: Once you have entered the co-employment status with a PEO, services begin with payroll. As the financial management center for employment, how you pay your employees is the key to the tracking and reporting requirements for your business. Quality PEOs go above and beyond the typical payroll service company by offering you access to other services, such as streamlined ACA reporting requirements and a pooled cost structure for areas like employee benefits and worker’s compensation.
Employee Benefits: With the increasing cost of providing employee benefit plans, as a business owner you may be feeling squeezed. You want to take care of your employees, but the bottom line has to come first. A PEO is a great solution to this problem. Your business joins one large group plan, taking advantage of the economies of scale enjoyed by much larger organizations. For example, Worksmart Systems, an Indiana-based PEO, offers a self-funded plan offering four options, with 8,000 participants. They partner with Anthem, whose expansive network in Indiana offers greater discounts leading to more cost savings for you and your employees. Worksmart allows you to offer your employees a menu of benefits like a Fortune 500 company!
Human Resources: During the economic downturn, many businesses downsized their non-revenue generating staff like human resource managers. However, that skill set is still needed. PEOs can serve as your human resources department, providing a wide range of services from employee training, hiring and termination assistance, and downsizing plans to EEOC claims, mandatory postings and employee handbooks.
If you already have an HR department in place, PEOs can create an infrastructure to manage your day-to-day operations more efficiently. By offering a system that streamlines the multiple vendors that come with medical and dental benefits, 401k plans, payroll, worker’s comp, etc., PEOs allow your HR professionals to focus on the human aspect of their job.
Benefits and HR Compliance: Businesses are finding it more difficult to stay in compliance in this constantly evolving world of employment law. The Affordable Care Act reporting requirements alone have placed a greater burden on business owners. Employers also must follow strict procedures within human resources management as well. Partnering with a PEO means you have experts in your corner, ensuring you are doing what is required. And, by entering into a co-employment agreement, you are sharing the liability for your employees. Unlike an HR consultant who offers advice and then leaves, if a PEO makes a mistake, they are sitting in court right beside you.
Human Resources Information System: Many PEOs offer HRIS systems that streamline your business operations, keeping all of your information in one place and making tracking and reporting simpler and more accurate. You can manage payroll, employee benefits, PTO, equipment loan outs, employee certifications and more. Many HRIS systems also have an employee-facing side, allowing your employees to manage their information.
Simply put, PEOs offer great value for the investment. You can efficiently manage your business operations in one place with a partner committed to helping you stay compliant. Worksmart Systems goes beyond its competitors by offering state-of-the-art technology platforms, superior customer support and quality products. If you are interested in learning more, send me an email or give me a call at (317) 663-4138.