Attention business owners with 20-50 employees!
You’re probably at the point where you’re considering hiring HR help to assist with human resources. You have many employee-related tasks like payroll processing, benefits administration, keeping an employee handbook updated, onboarding new employees or terminating others. The list goes on and on. These tasks are critical to people management, but they’re sucking up your time. They may have been less time-consuming or pressing when you had 5-10 employees, but it’s getting worse as you grow. It’s time for some help.
While hiring one HR professional for HR help to get your business started may be an option for some companies, you may want to consider an alternative if:
- You plan to expand or are currently doing business in multiple states
- You experience high turnover
- You are not as competitive in the marketplace with benefits offerings
- You’re looking for technology to support your people processes
An alternative solution to hiring internal HR help is partnering with a professional employer organization or PEO. A PEO provides comprehensive HR solutions for small and mid-size businesses such as payroll, benefits, HR, tax administration, and regulatory compliance assistance, among others.
Why might this alternative be a wiser choice than only hiring a single internal employee to handle your HR?
Your HR team will have an entire group of backup experts.
Everyone can’t know everything, especially when it comes to HR complexities. With a PEO, you can rest assured that each team member has an entire group of experts with unique knowledge and experience levels at their disposal. Not only is that great for knowledge sharing, but HR will never be “on hold” while an individual is on vacation.
You can offer better benefits.
One significant benefit of working with a PEO is the economies of scale offered through master insurance plans. Combining their clients’ worksite employees creates a larger group to provide attractive benefits rates, a better claims ratio, and more plan choices. With everything from medical, dental, vision, disability, and life insurance, you can create a benefits package that helps attract and retain employees critical to your business.
You’re getting a great deal more for significantly less money.
When you partner with a PEO, you receive an entire HR department. You’re sharing that HR department with other small businesses, but you have direct access to experts with years of experience in payroll, payroll tax, benefits brokerage and administration, risk and safety, and employment law compliance. This access comes at a fraction of the cost of duplicating in-house.
You share liability.
PEOs share employment liability with their clients. It’s one reason they are so invested in ensuring compliance.
You gain access to technology.
Using a PEO will give you access to an entire team of HR experts for a fraction of the cost of having them in-house, and you’ll also gain access to best-in-class technology. Offering employees an electronic onboarding experience, 24/7 access to their payroll and benefits information, learning and performance management software, and much more – takes your processes to the next level.
Depending on your business size, you may hire an internal employee to coordinate or compliment the efforts driven by your PEO partnership. Every business has different needs. We’re here to help you assess the options and choose the one that suits your business needs and goals the best. Contact us today to learn more!