Top 5 Reasons You Need a PEO

Businesses all over the world are discovering the benefits PEO’s can have on streamlining operations and reducing costs. The real question is: Why aren’t you?

In this increasingly hectic and fast-paced business world, every minute is valuable to business owners, as is every dollar saved. Increasing insurance and transportation costs are cutting into the bottom line for many business owners, as are increasingly harsher labor laws. These days, it is important to employ every possible asset at your disposal, and be ready to adapt to any changes life throws your way. If you’re looking for a way to streamline your business while reducing costs, you should consider employing a PEO, or professional employer organization. Below, you will find the top 5 reasons you need a PEO.

Payroll

PEO - PayrollRegardless of the size of your business, payroll can be a huge hassle. It is something that is hard to set on autopilot, especially in businesses that offer flexible hours and/or bonuses. If you have a mid to large sized business, a PEO can really help you out. Every aspect of the payroll management process can be outsourced to a PEO, and it doesn’t cost all that much. The money you will spend on payroll management, in most cases, far outweighs the time you would spend doing it yourself.

Benefits

PEO - BenefitsEvery business should offer some sort of benefits to their loyal employees. If you want to attract employees who are more educated and motivated, benefits are essential. Businesses who offer zero or not enough benefits will often see their best employees leaving in search of better employment opportunities. If you do not want this to happen to you, ensure that a proper benefit plan is in place. To do this without breaking the bank, consider using a PEO. PEOs have lots of clients and because they represent so many people, they can often obtain better rates on a variety of benefits, which gets passed on to you, the business owner. It’s a win-win situation, as your employees will get better benefits, while you save money!

Workman’s Compensation

PEO - Workman's CompensationWorkman’s compensation, often shortened to workman’s comp, can be one of the biggest expenses a business will face, as far as insurance/benefits go. Basically, workman’s comp will provide wages or settlement money in the event of a workplace injury. If you don’t have workman’s comp, and someone gets hurt while working for you, your business is liable to be sued. Especially if the injury resulted from negligence on your end, you could be forced to pay out hundreds of thousands of dollars, which in many cases will destroy your business. Don’t let this happen to you! Make sure that any PEO you are considering working with offers proper workman’s compensation, for a reasonable rate. Also, you should ensure that this insurance is legitimate. In the past, several PEO’s have been exposed for supplying illegitimate workman’s comp insurance, while still charging their clients.

Compliance

PEO - ComplianceIt seems like labor and tax laws gain complexity every day. Making sure your business stays compliant with all labor laws and government policies can be a huge hassle, and requires a lot of time and energy. When you hire a PEO, you are hiring compliance experts to handle the legal end of your business. They can review your current policies, suggest changes, and ensure that every aspect of your business is in line with government compliance laws.

Human Resources

PEO - Human ResourcesLarge companies often have entire departments, employing many people, solely to deal with human resources. HR is a broad category, and requires a lot of attention in businesses large and small. A PEO can help you reduce costs and save lots of time, by handling every aspect of human resources for your business. Trained professionals who work for these companies specialize in HR, and can complete tasks much faster than the average HR official, which means more time and savings for you!

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