I first learned about PEOs over a decade ago, and after many weeks of corporate training sessions, I became employed by, and actually passionate about, something that sounds as dry as could be… the Professional Employer Organization.
During my time representing two of the largest PEOs in the country, and now on behalf of my own company, I have had the opportunity to work with several hundred companies of all shapes and sizes. Many of these companies are in highly creative fields such as architecture, lighting and design, technology, e-commerce, and the life sciences, and one very specific goal they all have in common is the pursuit of top talent and the need to nurture and retain that top talent.
At its core, a PEO streamlines the human resource functions that companies of all sizes must face. This includes but is not limited to payroll, taxation, employment law compliance, workers’ compensation claims & administration, safety & risk compliance, employee benefits administration, recruitment & selection, employee training & eLearning, and unemployment claims & administration.
How could I be passionate about the back end of office operations?
There is nothing sexy or exciting about it, but it is vital to your company and your staffer’s day to day experience because partnering with the right PEO can help your business compete with much larger organizations by accessing the PEO’s expertise and resources and provide a heightened experience.
It may be difficult to quantify, but few things cost a business as much in lost revenue as being inefficient.
Unlike most vendors that you are working with today, the PEO relationship differs in that it is driven by a model known as co-employment. This means that the business and PEO share in certain employment responsibilities. Due to the co-employment relationship, the PEO is not simply administrating on your behalf. They have genuine skin in the game and are vested in maintaining a company’s compliance and providing guidance and support that protects your best interests.
We have all heard the phrase “time is money”. It may be difficult to quantify, but few things cost a business as much in lost revenue as being inefficient. Architects, designers, and most project-based businesses have timelines, and keeping to those timelines is of the utmost importance.
Managing your employee’s experience through proper HR guidance is no different. Employment and insurance compliance rules and regulations change on a weekly basis today and failing to adhere to these changes can be a drain on your time, your resources, and your finances if things should end up in a legal dispute.
Having seen countless business owners struggle with the non-revenue generating aspects of running their companies for so long, it is wonderful to see them take a deep breath when they realize that they are finally working with a safety net, and that safety net is PEO.
The unique advantage of partnering with a PEO is the ability to offer your employees a robust and varied employee benefits package at the Fortune 500 level… and making them happy.
Your staffer’s first day of work could go this smoothly:
1. They receive a welcome email to your company generated by the PEO’s human resource management system that has been built to specification during the implementation process.
2.They log into their own personal portal and digitally complete & submit their I-9, set up their W-4 allowances, and set up their direct deposit accounts. Nice!
3. They can enroll in benefits such as Medical, Dental, Vision, Life Insurance, Short-Term Disability, Long-Term Disability, Flexible Spending Accounts, Commuter Benefits, 401(k) retirement plan… so many benefits.
Imagine each subsequent day gave your employees this level of access:
1. All their personal payroll data with the ability to update information
2. Their benefits at any time, all the information right at their fingertips
3. Request paid time off/vacation time and receive approval digitally
4. A variety of employee discount programs and ancillary insurance products
You are making a good first impression and creating value for your most important resource, your team.
I will admit that not every company is a good fit to work with a PEO, and not every PEO is equipped to work with a certain type of company. After all, there are 900 of them. It could be the industry, or a difference in culture, or something more exciting like underwriting requirements, it is important to make sure that the PEO you work with is a good representation of your company and its goals.
A few fun facts as a kicker:
· Businesses that use PEOs grow 7% to 9% faster
· Businesses that use PEOs have 10% to 14% lower employer turnover
· Businesses that use PEOs are 50% less likely to go out of business
Written by Brick & Wonder Member Alex Fishbeyn