As a small business owner, there are many things to keep track of in the running of your business. Keeping track of payroll. Inventory, sales figures, and bills are just some of the many factors you have to manage to stay in business and succeed. However, many small businesses lack the resources that a large company would, and staffing a full HR department may simply be beyond your means. A PEO or professional employer organization can be vital in helping you meet employee needs. PEOs assist with many aspects of the HR process and that includes insurance one of the most important of employee benefits. The answer to what is PEO in insurance is one of the key reasons, why so many smaller companies work with PEOs in the first place. Here is more information on what a PEO is and what it offers you as a business owner.
PEOs And Benefits
A professional employer organization is an outside company that you hire to manage your human resources. PEOs offer a variety of features they can provide including handbooks, managing workers’ compensation claims, providing insurance policies, payroll, retirement, and even hiring. Many small and mid-sized companies really on PEOs to manage their benefits and provide the services they need.
Insurance is a key benefit for employees and many people base continued employment on the benefits they receive. As a business owner, you want to offer your employees the best insurance options possible. PEOs offer a wide selection of insurance options for your employees including health, vision, dental, and even more. In addition, due to working with several companies at the same time, PEOs offer benefit packages that rival much larger companies. By working with a PEO you gain access to benefits you wouldn’t have otherwise. This greatly increases employee satisfaction and makes you more competitive when hiring.
By partnering with a PEO you gain other advantages as a company owner.
1. First among these is cost providing benefits such as insurance can be very expensive and as a smaller to mid-sized company you be limited in what you can offer on your own. With a PEO you not only gain access to better plans you also save money.
2. Another consideration is state regulations. Federal and local governments have strict rules and regulations in place that you have to meet. PEOs specialize in this area and ensure that you are meeting all needed regulations reducing issues and preventing penalties.
3. Time is another consideration. Managing benefits and HR can be time-consuming and as a smaller business, you may not have the items or resources to manage your own HR while also attending to more critical concerns. With a PEO you have an outside partner who can manage that for you.
4. When working with a PEO you not only gain access to better benefits you also gain expert support. PEOs have staff that can help guide your employees and answer any questions they may have. A PEO can assist with common tasks such as claims processing, enrollment, and general communication.
5. A PEO can also help you attract and retain talent. The best and most qualified employees often demand not only competitive pay but also good benefits as well. A PEO allows you to offer the benefits the best employees in your industry expect. This keeps you competitive when hiring as it shows you have something to offer potential employees.
As a business owner HR and insurance are not things you can ignore. By hiring a PEO you gain access to the benefits and policies you need to successfully run your business. Also, a PEO is a cost-efficient way to gain a fully featured HR department without having to build your own. This saves you money, frees up resources, benefits your employees, and makes your business more successful.