What are PEOs and why they matter to small businesses?
How SMB’s (Small-Medium Sized Businesses) can get healthcare relief with PEOs?
Not every organization has the luxury of employing dedicated staff to the ever-changing and increasingly difficult role of Human Resources. Yet the requirements for compliance, such as the Affordable Care Act, and competitive edge, remain the same as organizations that do. Professional Employer Organizations (PEOs) are a sound solution for small-medium sized businesses in the navigation of Human Capital Management to attract and retain top talent, maximize efficiency and minimize risk.
Attract and Retain Top Talent
Health benefits are key to attracting top talent — the people with the skills and drive to help place your company on the competitive edge and keep it there. Yet, small and medium businesses simply don’t have the critical mass to negotiate affordable, top-drawer benefits packages. PEOs can offer their customers the best benefits options by simply leveraging their larger employee pool.
Maximize Efficiency
The world is now web-enabled and most professionals, especially those in the technology and finance field, have come to expect anytime, anywhere access to their HR information and the ability to update their data from their laptops and smart phones. But the cost of implementing and maintaining a state-of-the-art HR information system (HRIS) is simply out of reach for the average small and medium business. With a PEO, this is no longer a problem. PEOs license and maintain their own enterprise level platforms that can handle all their customers’ HR administrative processes. On the front end, users enjoy access to a portal that is easy to use and highly customizable, allowing managers and employees to access and administer HR transactions from any desktop computer.
Minimize Risk
When you contract with a PEO, the PEO takes responsibility for the HR tasks and shares the risks — you take back the focus on your business. You can spend more time on revenue- and profit-generating activities. You can hire the best talent anywhere in the country — without keeping track of payroll withholding and workers compensation requirements of other states.
This is no small task given the explosion of employment laws in the last 25 years. According to the U.S. Small Business Administration, the number of employment-related laws and regulations grew by 60 percent between 1980 and 2000. But the PEO provides a back office team that boosts your ability to identify and resolve risk-related issues before you spend valuable time dealing with potential employment lawsuits.
By managing these three areas of a small business, a PEO allows an entrepreneur to focus on what is most important, which is growing the business. Once you’re relieved of the HR administrative burden, you can refocus your attention on sustainable, revenue-generating activities.
Joanne Descovich
Regional Sales Consultant
TriNet
68 South Service Road Melville NY 11747
(M)516.425.4277
