Business leaders and entrepreneurs know the value of each dollar when it comes to managing an enterprise. With the growth of your business, the demand for human resources continues to expand as well. At such a point, you may want to consider outsourcing your most significant HR duties to a PEO (professional employer organization).
A PEO refers to an entity that agrees to a co-employment contract with your business. The professional employer organization then assumes the HR functions that are employer-connected like benefits and payroll. You can rest assured that your business is being handled in a professional manner and nothing is at risk of falling through the cracks. Here are some crucial areas that a PEO can help in a business.
1. Employee Compensation
Outsourcing HR services has its various advantages, and simplifying the workers’ compensation procedure tops the list. A PEO can offer a compensation cover to your staff using its insurance initiative. A professional employer organization manages audits, certifications, paperwork, and compliance related to handling such programs.
Your business can also access a committed team of employees’ compensation professionals who are knowledgeable on your specific corporate operations. They can work together with your main human resource service personnel. These experts offer impacted workers the necessary answers in a timely fashion while mitigating risk.
2. Payroll Responsibilities
Involving a professional employer organization in your organization could lower the cost of processing payrolls and accounting expenses. PEOs can automate your payroll procedure and manage your wage garnishments, W-2s, and withholdings.
You may want to consider the terms and conditions of your preferred professional employer organization. Some charge a separate fee for each payroll service, like giving quarterly and yearly payroll reports, while others charge a straightforward fee. Be sure to fully understand the fee schedule before signing up for a professional employer organization service.
3. Compliance With Human Resource
There are many dynamic and complex aspects of employment law. It could prove costly for your enterprise if you fail to adhere to the regulations set aside for human resources. Between workplace discrimination laws and wage and labor laws, trying to keep in compliance could be complicated. Several federal and state agencies can fine you for lack of HR compliance.
Hiring a professional employer organization can save you from the constant hassle of keeping up with these laws. A professional employer organization with experienced human resource experts will assist you in preventing compliance violations.
Some policies, such as sick leave directives, may vary from state to state. If you have employees working in various states, you may need a PEO to help you keep track of the applicable laws in your case. Also, there is an emergence of new HR-related rules such as:
- Ban the box regulations which demands that employers refrain from asking applicants about their criminal history during the first job application
- Wage equity regulations prohibit employers from requesting salary records during job applications
Given the extensive laws you need to be aware of as an employer, it is best to seek the services of a professional employer organization. PEOs top up the services of in-house human resource personnel. They guide you on how to adjust to recent law changes and keep you updated on any new regulatory changes.
4. Staff Recruitment
Finding the perfect candidate to join your team can be an exhausting process during normal economic times. During a pandemic with record high unemployment rates, hiring a candidate can be a total nightmare. Many businesses have experienced sizable layoffs while others have closed their doors forever. That left the job market flooded with qualified candidates. But that just means more applications to sift through to find the right candidate to meet your needs.
Business managers lack the bandwidth and time to concentrate on the crucial aspects of staff recruitments. A PEO can provide you with services like recruitment aid and offer you access to seasoned recruiters. A reputable recruiter is good at reading applicants for certain jobs. They can evaluate the attitude, emotional intelligence, and compatibility of the applicant to the job position. Their input saves you time and resources while ensuring that you get the most suitable candidate for your business.
Seeking assistance through a professional employer organization can assist entrepreneurs in dealing with overwhelming human resource duties. Business leaders are left with additional time to concentrate on aspects of their enterprise that can enhance the expansion of operations. You can rely on a reputable PEO to provide professional help every step of the way.