Team up with a PEO to help your business reduce the burden of bureaucracy.
Let’s just cut straight to the chase: Bureaucracy is the bane of small business owners everywhere. While larger firms might have the benefit of a dedicated HR department staffed with expert professionals, most smaller operations have no such luxuries. More often than not, the owners and proprietors themselves are the ones juggling payroll responsibilities, and human resources demands including hiring, firing, and recruiting, on top of their day-to-day responsibilities.
Nonetheless, these bureaucratic tasks are absolutely critical in determining the long-term prospects and success of any business. The talent you bring in directly affects your output. Yet that talent must be found through an exhaustive process, wooed with competitive employee benefits, and then protected with comprehensive (i.e. expensive) insurance coverage. Getting any of these key components wrong hobbles your workforce, which hobbles your business. Filling out the wrong worksheets or losing key forms could spell disaster down the road and expose the company to risks that it can’t recover from financially.
This is where PEOs come in.
PEOs, or Professional Employer Organizations, exist for the sole purpose of guiding businesses through the byzantine payroll process, employee benefits, insurance, hiring, and human resources. Think of them as full-service HR departments staffed with expert and knowledgeable HR professionals for hire.They take on all the bureaucratic administrative duties, allowing the client firm (you) to focus on their core business and not the paperwork. Teaming up with a PEO also opens up a whole host of other financial benefits ranging from discounted premiums to expanded employee benefits. All the savings, of course, are passed on to the client firm.
To recap, PEOs help small business overcome bureaucracy by:
- Taking on all the administrative duties associated with payroll, employee benefits, hiring and recruiting, insurance coverage, and general human resources management.
- Providing expert HR professionals and recruiters.
- Breaking through the size barrier. Thanks to a method known as “pooling”, PEOs can obtain discounts on insurance premiums and more competitive benefits packages for employees that would otherwise be unavailable to most small businesses.
- Reducing a client company’s risk exposure and legal liabilities.
- Attracting top-flight talent and more skilled employees with competitive benefits at a reduced cost for clients.
- Banishing the paperwork!
Great. But keep in mind that finding the right PEO to team up with is essential. PEO-client relationships are a close and personal relationship in which a PEO will become co-employers with the client company, in effect hiring its workers in order to provide benefits and HR services to them. It’s the definition of teamwork. But it also means a very close working relationship.