Human Resources Outsourcing Provides Small Organizations With Big Benefits

As an employer, you probably realized that offering quality benefits helps you attract and retain the best employees. No doubt you’re also aware that offering competitive benefits can be expensive. To meet this challenge many businesses turn to a Professional Employer Organization (PEO). Growing companies have discovered that by using a PEO they can provide comprehensive employee benefits while remaining well within their budget.

When you work with a PEO your employees are co-employed, meaning that the PEO shares the risk and responsibility of employment with you. While you’re growing your business and managing your company’s day-to-day operations, the PEO is behind the scenes filing payroll taxes, administering employee benefits and managing any worker’s comp claims (among other things).

Because PEOs can work with hundreds of small businesses they’re able to negotiate deep discounts on workers’ compensation insurance and benefits (such as group health care) plans. They can then pass these savings to each client company and their employees, often providing a variety of benefit options at a lower rate that the client company could obtain on its own.

In addition the cost of the benefits themselves the PEO also administers the benefits, managing the paperwork, enrollments and benefits-related questions. By working with a PEO, you not only save money on the benefits themselves, but also save time by working with an outside expert to properly handle benefits administration. This combination can add up to a significant savings of both time and money, which you can put toward building your company as opposed to administering benefits.

Before you begin looking for a PEO, however, you want to spend some time thinking about the kinds of benefits you would like to offer your employees. Ask: What benefits are you currently offering? What do your employees value? What are you willing to contribute to benefits (such as 401(k))?

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