5 Reasons Your Company Needs A PEO
A professional employer organization, or PEO, is a company that takes on many of the duties of a large human resources department. This can allow you to operate a smaller in-house HR department or in the case of a smaller business, take the place of in-house human resources altogether. The following are just a few of the benefits of working with a PEO.
1. HR Duties and Support
A PEO can handle most HR department duties, which means they can take over completely or simply work as a support team in tandem with your in-house HR department. Support includes gathering and maintaining employee records and training data, tracking employee benefits, processing evaluations and reports, and even handling some hiring duties.
2. Legal Aid and Advice
Although most PEOs cannot take the place of a lawyer or legal department, they can offer some aid and services. For example, a PEO can ensure that your company is following all laws and regulations when it comes to hiring, firing, and payroll. This can include dealing with certain legal challenges, such as worker's compensation claims or payroll disputes.
3. Better Benefit Offerings
It can be especially challenging for smaller businesses to provide competitive employee benefits packages. A PEO can improve your benefits at little additional cost to you, the business owner. This is because they are able to pool together several smaller businesses through the PEO service, and with greater numbers of employees, there is a greater choice of benefits. This can allow you to compete with large companies when it comes to attracting employee talent.
4. Payroll Management
Payroll can be a challenge to manage, whether you have one employee or a thousand. PEO payroll services will track hours and wages, as well as make sure overtime and paid time off requests are handled properly and legally. A PEO will also issue paychecks and direct deposits on your behalf, and track tax withholdings, retirement contributions, and other necessary documentation so you never have to worry about a late or inaccurate check.
5. Recruitment Assistance
Many PEO companies don't handle interviewing and hiring directly, but they may offer some recruitment services. These typically include drafting and placing recruitment ads in the best locations for your business type. They will also accept and sort resumes for you, so you only have to sift through the most qualified candidates. After hiring, they may be able to provide onboarding assistance with gathering the necessary new employee documentation.
Contact a PEO payroll company to learn more about the variety of services available.