According to the Small Business Administration, the average small business owner spends 25% of his/her time dealing with issues that can be outsourced.
Faced with rising insurance costs and increased regulatory requirement, small businesses are finding it necessary to pay the ongoing salary of a staff HR administrator to manage the employee administration and oversee the company's benefit programs. Those owners that can’t afford an HR administrator have to spend their precious time dealing with these issues. To resolve the situation, many small business owners have opted to hire a Professional Employer Organization (PEO).
A PEO will offer a variety of benefits, including health insurance coverage, pre-tax saving accounts, 401(k) plans, and more.
When a small business contracts a PEO, the employees become employees of the PEO, providing them with benefits, including in some cases health insurance. More importantly, because the company's employees now are combined with other members of the PEO, the small business is able to enjoy much lower insurance rates. Additionally, some PEO’s allow the employer the option to provide multiple health plans.
Another benefit is that a small business is able to attract and retain better employees since the new benefit choices make the firm much more enticing for job candidates who might be looking at larger firms with more to offer.
Working with a PEO also relieves business owners and others of the need to constantly make benefits-related decisions, leaving those to the PEO's administrators. The PEO also provide the business with expertise in HR, benefits management and instant infrastructure.
Being in business today consists of more than getting the product or service out the door. In today's litigious society, it has become imperative that companies establish Human Resource policies and procedures to effectively manage its employees and operations. At PEO Source, we allow clients of our insurance agency partners to focus on their core business while operating in the comfort and safety of an HR compliant workplace.
Most companies are unable to obtain the level of human resources expertise and services required to successfully operate in full compliance of all the federal, state, and local laws and regulations. The primary reasons stated are cost and time. Many recognize the need but can't justify the salary of a full time professional. The cost of payroll taxes, health, life, dental insurance, and 401k contributions, combined with workspace and equipment exceeds most employers’ budgets.
Let PEO Source identify the most suitable and cost effective solution for managing all of your clients HR related functions. Imagine your clients having Human Resource professionals available at all times to answer their questions, provide them with solutions, and take on the liability without it negatively impacting their bottom line, they would be forever indebted to you.
Professional Employer Organizations provide values for small and midsize firms that are difficult to measure, but impossible to ignore. They help a young firm succeed against more established competitors in the market for skilled and competent workers. They enhance your ability to attract, retain and staff your clients company with people whose abilities and skills were tested, and references verified. PEO's relieve employers of the time-consuming chores of managing employee administration and payroll, and ensuring that their firm is in compliance with the myriad of government and HR regulations. Enlisting the services of a Professional Employee Organization allows business owners and managers to focus their attention on running their company.
The National Association of Professional Employer Organizations (NAPEO), the industry trade group, estimates approximately 700 PEO’s currently operating nationwide, with an annual growth rate of 20%. The problem for most companies is that each PEO offers a differing range of administrative services, employee benefit programs and support, at varying levels of quality and cost. Devoting the time, energy and expertise to accurately compare PEO’s can be a daunting task for any employer.
According to the
Small Business Administration, the average small business owner spends 25% of his/her time dealing with issues that can be outsourced.