Today’s article is a pretty simple one.
It’ll be covering the topic of what a PEO stands for and the role that they play in the current corporate landscape.
So, without further ado…
A PEO stands for professional employer organization. These organizations are designed to provide a wide range of services designed to enhance HR processes in businesses. They help businesses with payroll, workers’ claims, insurance, benefits, tax, and HR compliance.
Here’s everything you need to know about professional employer organizations (PEOs).
What is a PEO and what do they do?
Businesses of all sizes rely on PEOs for a variety of essential services.
A PEO can act on behalf of a business to provide payroll processing, human resource management, employee benefits, and workers’ compensation insurance.
This allows businesses to focus on their core competencies while still accessing the professional expertise they need to thrive.
PEOs can also help businesses save money and time through taking advantage of economies of scale.
By pooling resources together with other clients, a PEO can negotiate better rates for things like health insurance and retirement plans.
As a result, professional employer organizations provide an invaluable service to businesses of all sizes.
What are the benefits of using a PEO?
Here are some of the main benefits businesses stand to enjoy while working with PEOs:
- They help with administering payroll and tax preparation.
- They can manage employee benefits on behalf of businesses.
- They offer assistance with HR compliance, employee laws, and risk mitigation.
- PEOs can help you with recruiting and hiring processes.
- They offer HR support and guidance.
For a more comprehensive look at the advantages that PEOs have to offer, have a read through our article which discusses the benefits of PEOs, as well as our post outlining the pros and cons of such organizations.
How to choose the right PEO for your business
Businesses today have a lot of PEOs to choose from.
So, how do you identify the right PEO for your business?
Here are four tips to keep in mind:
Consider the services you need
Do you need help with payroll, benefits, or both?
Make a list of the services you need, and then find a PEO that offers them.
PEOs charge businesses differently, so it’s important to compare pricing structures to find the most affordable option.
Don’t just take a PEO’s word for it that they’re the best – read reviews from other businesses that have used their services.
This will give you an unbiased opinion of what it’s like to work with them.
And in combination with this, ask around.
Talk to other businesses in your industry and see if they have any recommendations. If someone you trust has had a good experience with a PEO, there’s a good chance you will too.
Following these tips can narrow down your options and choose the right PEO for your business.
Questions to ask potential PEOs
As the global economy continues to rebound, more and more businesses are turning to PEOs to help them manage their HR needs.
PEOs provide a wide range of services, from payroll and benefits administration to compliance and risk management.
But with so many PEOs to choose from, how do you know which one is best suited for your business?
Here are four important questions to ask any potential PEO:
- What services does the PEO provide?
- How much experience does the PEO have? (How many years have they been in the industry).
- What is the PEO’s pricing structure?
- What are the PEO’s references?
- Is there an extra charge for other services?
- What is the average number of years/ months the PEO has partnered with businesses?
- What role will you play in the HR compliance processes?
By asking these seven questions, you’ll be able to narrow down the field and find the PEO that best meets your needs.
PEOs can provide businesses with a wide range of vital services, from payroll processing and human resources management to employee benefits and workers’ compensation insurance.
PEOs can also offer businesses significant savings on health insurance and retirement plans, especially for growing businesses.
If you’re looking for a way to enhance your business’s HR function, you should consider PEOs.