08 Sep How PEOs Help CEOs Grow Their Business
A professional employer organization (PEO) could give your organization the competitive edge you need to leap to the top of your industry. A PEO is able to take care of tedious issues like payroll and payroll tax filings, all while helping to keep you fully in compliance with state and federal employment laws. Even if you already have a human resources department, a PEO can supplement their efforts and free up their time for more valuable activities that help move your business forward.
What Your HR Department Does Now
What do your current HR personnel spend most of their time on currently? If your business is like most companies, your team spends most of their time managing payroll issues, recruiting and training employees, and filing out an endless number of government forms. There are monthly, quarterly, and annual reports that must be filed. A single mistake in your payroll of your payroll tax filings could cost your business thousands or even tens of thousands of dollars. Your HR staff cannot afford to get distracted by anything else until tasks that help to maintain compliance are fulfilled.
Your team of human resource professionals likely spends all their time taking care of these essential tasks, and then some, and they do not have enough time to perform the functions that would be the most valuable to your business. Additionally, your team probably doesn’t have the bandwidth to proactively build solutions that would improve productivity or reduce turnover and you cannot afford to add more human resources personnel because you need your new hires focused on meeting the demands of your customers and growing the business.
What Your HR Department Should be Doing
Handling the regular payroll processing, tax filings, and other related work is within the skill set of your HR team, but it may not the best use of their time. These administrative tasks are important, but they are not adding value to your company. Ideally, your human resources professionals should be spending their time analyzing the state of your workforce. They should be looking for ways to increase productivity and improve morale.
When your HR department is fully optimized, you often see a decrease in your turnover rate, improvement in the caliber of new hires, and a more productive workforce. If you want your employees to be more innovative and creative, you should be able to lean on your human resources staff to make that happen.
Until your human resources personnel can get away from tedious data entry and form completion tasks, your company may not be able to reach its full potential. You need your HR department to be at the center of any efforts to strengthen and motivate your workforce, which will positively impact your bottom-line in the long term.
Using a PEO to Relieve HR Yields an Excellent ROI
Instead of having your HR department spend their valuable time on paperwork and data entry, you could supplement their efforts with a PEO. The best PEOs are often less expensive than the cost of doing the same work in-house.
With a PEO handling payroll and all of the related HR tasks, your HR department will have more time to do the more valuable work of creating a better employment environment. Your HR department will be able to use all of their creative energies doing what they naturally do best, improving employee skills and productivity levels.
The best PEOs should begin paying for themselves right away. After just a few months, you will start to see using a PEO is not a cost, but an investment that gives you a solid return.
PEOs Help Your Business Avoid Legal Risk
PEOs not only handle HR administration, they also help businesses maintain compliance with laws and regulations like the FLSA, FMLA, and HIPAA. They also closely monitor changes in the legal landscape to ensure your business is always current. Moreover, PEOs are trained in handling employee-related situations that can result in lawsuits or litigation if not taken care of properly and legally.
A PEO can help with:
- Worker’s compensation and insurance payments
- EEO and sexual harassment claims
- FMLA tracking
- Health insurance deductions
- Retirement accounting
- Comprehensive employer liability management
- Employee verification
Get the Results Your Business Needs to Grow
A PEO is more than just a vendor. They are a strategic partner that helps your business reduce costs and improve efficiencies that contribute to operational productivity and revenue gains. If you are a small to medium-sized business and don’t work with a PEO to offload HR and compliance tasks, you are putting your company at a severe competitive disadvantage.
Many PEOs like OROhr cater to small businesses, which means they work with you to provide the services you need and handle the tasks taking time away from focusing on your business. OROhr helps offload your HR workload, assisting your business with payroll, employee benefits, tax services, risk management, and legal services. Partner with OROhr to experience an increase in workplace profitability and productivity without worrying if your business is maintaining compliance.
Interested in learning more about what a PEO can offer your business? Download our Guide to Hiring a PEO for Your Small Business to learn the benefits of outsourcing HR to a PEO.