Business owners dash from task to task and decision to decision. This often prompts long hours since you must still deal with time-intensive tasks like bookkeeping, payroll, and hiring. Some business owners enlist a PEO company to help them avoid this kind of overload?
What is a PEO company? It’s a business that offers outsourced services in bundled packages.
What can businesses get from working with a PEO? Keep reading for five major benefits you can get from working with a PEO company.
1. Simplify Payroll
Business owners routinely hate finance-related tasks like bookkeeping. Payroll is no exception to this trend. In fact, payroll often proves even more troubling because of its complexity. Businesses must constantly cope with federal tax deadlines, not to mention changing tax rates.
Looking for outside help, like this PEO company, can simplify your payroll by offloading it onto experts. Just look for a local company so they’ll be up to speed on your state and local tax quirks.
2. Better Recruiting
Many businesses struggle with the intricacies of recruiting. You post the position on all of the job boards. You even use applicant tracking software to weed out resumes without the right keywords. Yet, you still end up with as many misses as hits.
PEO companies often offer professional recruiters who can help you pin down good candidates.
3. Improve Compliance
HR compliance proves a stumbling block for businesses large and small. Federal and state agencies issue new regulations all the time. This is an area where you need experts or you can end up on the wrong side of a lot of fines.
Most PEO companies offer some HR services. Top 10 PEO companies always offer them.
4. Superior Insurance Options
Many small and even midsize businesses don’t enjoy excellent insurance options. They take what the insurance company offers because they need the coverage or they want some healthcare options for their employees.
PEO companies often enjoy access to better insurance options than small or medium-sized businesses can get on their own.
5. Renewed Focus
An indirect, but powerful, benefit you get from working with a PEO company is a renewed focus on core competencies. Every time you remove a work-intensive task that isn’t a core business task from your plate, you free up productive energy.
You and your staff spend the lion’s share of your time running the actual business, which promotes healthy growth.
Should You Work with a PEO Company?
Deciding on whether you should work with a PEO company or not depends on your business structure and needs.
A business with an established HR department, finance department, and decent insurance coverage probably won’t benefit much. Let’s say that your business limps along, barely getting payroll done every two weeks, and you hire haphazardly. That business would almost certainly benefit from working with a PEO.
Hungry for some more business-related content and tips? Check out the articles in our Business Advice section.