A Professional Employer Organization is an incredible tool for making sure your employees are taken care of, for a lot less cost and hassle. You might have heard of PEO, but is it really something you’d benefit from? If you’re a high-growth company, here are five reasons why a PEO is beneficial in scaling your organization.
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Attracting Talent. The hiring process can be a long and expensive one. But a PEO has connections with recruitment networks and other resources that you might not have. They can give you access to a bigger pool of candidates that meet your criteria, allowing you to find better quality talent more quickly, saving both time and money.
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Benefits. Particularly in the current economy, if you want to attract new, high quality talent to your organization, you need to offer a competitive benefits package, including healthcare and a 401(k). Offering these benefits can be expensive—but if you can’t afford to do it, you can’t afford to grow your company. However, if you go through a PEO, they have access to far more options than you would on your own. They can help you offer better benefits to your employees at less cost to you. An organization of 15 people can save an average of $36,000 per year on health insurance alone.
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Taxes and Payroll. As you scale your company, it means a lot more administrative tasks to handle. Things like taxes and payroll suddenly become more complicated when dealing with more money and more employees. Your existing accounting team could easily get bogged down with all of it. But a PEO can handle it all for you, making sure all your employees get paid what they’re owed on time, that their proper tax forms go out promptly, and that your tax issues—what you withhold, what you pay, etc.—are all taken care of as well.
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Managing Risk and Responsibility. As your company grows, there may be additional compliance issues to navigate. What are OSHA’s criteria for organizations in your field? What kind of safety training do you need to provide your employees? What do you do if someone files an insurance claim? The more employees you have, the more difficult all of this is to handle. But a PEO can take care of all of it for you, making sure you’re in compliance with all rules and regulations, handling claims, and ensuring your employees receive proper training, certification, etc. for their positions.
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Tailored Solutions. The needs of every company are different, and as you grow, those needs continue to change. You’ll hear a lot about the basic, cookie-cutter services that a PEO can offer you, like healthcare and hiring pools. But a good quality PEO is one that works with you to identify the solutions that you need at this stage of your business and can determine the best way to provide them to you.
Business growth is an exciting and often overwhelming process. There are all sorts of ways a Professional Employment Organization can help you navigate the fine points as you scale your company. And with the right PEO in your corner, you can continue to grow expand in ways you never dreamed of. The sky’s the limit!