6 Frequently Asked Questions About PEO Firms
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Getting an edge on your competition can boost your business profits and expand your organization quickly. Many growing companies find themselves bogged down with day to day tasks related to human resources activities. Whether employees are worried about payroll or doling out worker’s compensation using your workforce to handle such tasks can create a drag on your business.
PEOs can help your company by lightening the human resources-related workload experienced by your business. By freeing your workforce from these tasks you can grow your bottom line quickly.
What Is a PEO Firm?
PEO firms are professional employer organization firms which help customers outsource worker’s compensation, payroll, employee benefits management and management of human resources. A PEO client can focus on business-growing tasks to expand their organization.
Why Would Companies Use a PEO?
Since most businesses are less concerned with the business of employment and more focused on growing their bottom line any company which desires to delegate human resources-related tasks should consider using a professional employer organization. Using a PEO can help your organization devote its resources toward creating value for your customers and developing stronger relationships with your clients. Outsourcing is the name of the game for both growing and established businesses. Go the PEO route to focus your workforce on expanding your business.
Freeing up your employees to concentrate on business-growing tasks makes your organization both lean and mean. Streamline your company. Use the professional services of a PEO.
How Does a PEO Service Clients?
A PEO develops a relationship with both their client company and worksite employees. PEOs work to co-employ worksite employees of their clients. The client company manages product production and development, service, sales, marketing and business operation. PEOs maintain responsibility for employee and payroll tax compliance, human resource management and risk management. The PEO usually provides a full benefit and human resource package for employees.
Who Would Use a PEO?
If your business employs 19 worksite employees you run the average-sized business which works with PEOs. PEOs can also service organizations with 500 or more employees. Any company which needs expertise in human resource management and robust web-based HR technologies should consider working with a PEO.
Do Business Owners Maintain Control over Their Businesses?
Business owners maintain control over their operations and also retains ownership of their companies. PEOs simply allocate employer liabilities and responsibilities. PEOs can also improve compliance and safety. Think of PEOs as a form of outsourcing for your organization. Owners still control over day to day operations whether or not an outsourced partner works with a company.
How Do Temp Services Differ from PEOs?
A temporary staffing service hires and recruits employees similar to employee leasing. Temp agencies assign temporary staff to clients who might need to fill special needs. If full time employees fall ill or need to take medical leave or if some large scale project requires extra help a temporary staffing agency can supplement a client’s workforce with temp workers.
Professional employer organizations never supply workers to worksites. PEOs co-employ permanent workforces and offer services and benefits to both worksite employees and clients.
