A professional employer organization (PEO) is a firm that handles administrative, HR-related tasks for businesses. Using a PEO can provide your business with ample room for growth. That’s because PEOs free up time for you to focus on growing your business instead of completing administrative tasks. With this extra time, you can also focus on developmental training for your employees to help them grow professionally. Start a search today to find affordable professional employer organizations.
Shutterstock: fizkesWhat Is a Professional Employer Organization?
A professional employer organization (PEO) provides services like payroll administration, worker’s compensation, and human resources support to businesses. In effect, the PEO becomes a co-employer, handling many of the administrative burdens. This allows the business owner and management to focus more on strategic growth activities.
Benefits of Using a PEO
Opting to partner with a PEO can offer an array of benefits for your business. With this in mind, here are some of the benefits to keep in mind:
Saves Time
We all know that time is a priceless commodity. Often, HR tasks like payroll and benefits administration can take a big chunk of your time. A PEO handles these tasks for you. Imagine the extra time you’d have to focus on things that matter most, like scaling your business, exploring new opportunities, and focusing on your employees.
Reduces Risk
Did you know that a PEO can help manage risks? They ensure compliance with state and federal regulations, helping to shield your business from potential fines or legal action. You can take this weight off your shoulders and concentrate more on expanding your professional horizons.
Exclusive Discounts
When you partner with a PEO, you’re joining a pool of businesses. This collective bargaining power can translate into discounts on products and services that would typically be expensive for smaller businesses. These can range from insurance plans to employee training programs, giving you cost-effective solutions to boost business growth.
How PEOs Can Boost Employee Morale and Productivity
A high-performing workforce is the backbone of any successful business. Fortunately, PEOs can help by giving you more time to focus on your employees. By managing administrative tasks, PEOs free up management to invest time in fostering a good work culture.
For starters, PEOs handle time-consuming HR duties. This allows you to focus on supporting your employees, which can improve their morale. When employees feel valued and supported, their commitment and productivity levels often rise.
PEOs also offer access to comprehensive benefits packages usually only available to larger corporations. These health and retirement benefits can boost employee satisfaction, leading to improved morale and productivity levels among your employees.
Moreover, PEOs often provide exclusive discounts for training and development programs. These resources can help employees improve their skills and grow professionally, increasing job satisfaction. The result? A more motivated, productive workforce.
The Value of Focusing on Employees
A whopping 87% of millennials consider professional development opportunities “very important” in a job. However, over three-quarters of employees feel like they’re on their own when it comes to career development. Studies show this can be especially pronounced among remote workers. That’s part of the reason why the extra time gained through partnering with a PEO is so valuable for you and your employees.
With a PEO taking care of administrative duties, managers can dedicate more time to their team members. This extra time can be used to understand employee aspirations, provide constructive feedback, and guide them in their career progression. In turn, this can boost employee satisfaction, loyalty, and productivity. Furthermore, PEOs often provide special discounts on professional growth resources and training.
How To Choose the Right PEO for Your Business
The right PEO can help drive growth and free up time for you to focus on what matters most. Here are some steps to consider while researching your options:
- Search online: Look for PEOs that cater to the size of your business. You may want to pay particular attention to those specializing in your industry.
- Identify your needs: Are you seeking help with payroll, benefits administration, risk management, or HR support? This step will help you choose a PEO that matches.
- Consider their reputation: Look at reviews and testimonials from other businesses. A good reputation is a strong indicator of quality and reliability.
- Evaluate their service model: Does the PEO offer a full-service model or can you pick and choose the services you need? Make sure their model fits your requirements.
- Compare costs: While PEOs can offer cost savings in the long run, it’s still important to ensure the cost aligns with your current budget. Compare prices while searching online.
Remember, choosing the right PEO is an essential step toward boosting your company’s efficiency and growth. Take your time, do thorough research, and find a PEO that fits your needs and goals.
The Bottom Line
Investing in a professional employer organization is a strategic business decision that can supercharge your growth and efficiency. By handling administrative tasks, a PEO allows you to channel your energy into growth initiatives and employee development. Additionally, a PEO can help your employees develop and thrive with discounted training and developmental resources. Start your search for the right PEO today — it could be the game-changer your business needs.