5 Advantages of Outsourcing Employee Benefits to a PEO Company

Posted on: April 9th, 2024 by

Your benefits package is an important component to the compensation you offer to employees. In today’s competitive hiring climate, your ability to offer high quality benefits that address the needs of your team can play an important role in your ability to attract and retain the best employees.

For many small and medium-sized businesses, managing employee benefits in-house presents significant challenges. Without the vast resources and buying power of large companies, it can be difficult to offer your team quality benefits at an affordable price. In addition, the increasing complexity of employee benefit programs and the regulatory compliance requirements associated with these programs can stretch a small in-house HR team to its capacity, making it hard to devote time and energy to the other important responsibilities they must address.

For this reason, many businesses outsource employee benefits administration to a PEO company. Professional Employer Organization (PEO) companies provide a wide range of third-party HR solutions for businesses. By delegating this important task to a PEO company, you can experience a variety of benefits that elevate your employee benefits program and relieve a burden on your internal team.

Expertise in Compliance

One of the most taxing aspects of managing employee benefits is remaining compliant with state and federal regulations, which can be both complex and ever-changing. A PEO company has the expertise to not only understand these legal intricacies, but also to anticipate changes. They ensure that your benefits packages are always in compliance with the latest regulations, protecting your business from costly penalties associated with inadvertent non-compliance.

At PassioHR, we have a dedicated team of experts monitoring the latest updates to state and federal employee benefits regulations. Our team understands the complexities of the Affordable Care Act, ERISA, and other relevant statutes governing your benefits administration. By leveraging our specialized knowledge, you mitigate risks and avoid costly legal mistakes.

Access to Better Benefits

access to better health insurance benefits with a PEO companyOne of the most important advantages of working with a PEO company is that you gain access to high-quality benefits packages that aren’t typically available to small and medium-sized businesses. PEO companies pool their client employees, increasing their purchasing power. This means your staff can enjoy a range of benefits that may otherwise only be accessible to employees of larger corporations.

Not only do your employees gain access to a wider array of high-quality health, dental, vision, and life insurance options, but these benefits often come at a more affordable cost due to the PEO company’s purchasing power. Offering better benefits at an affordable price helps you retain top talent and maintain a happy workforce, which will provide significant long-term benefits to your company.

Reduced Liability

PEO companies establish a co-employment relationship with your business where you remain the primary employer and retain control over business operations, while the PEO manages any HR responsibilities you delegate to them. This co-employer relationship with a PEO company reduces your liability in many aspects of employee benefit programs. Risk exposure associated with compliance lapses, such as potential fines for non-adherence to regulations, is shared with the PEO company, providing an added layer of security for your business.

In addition, a PEO’s role in managing employee benefits often includes dealing with claims and dispute resolution, which can be a legal minefield. With their expertise at your disposal, you’re far better protected against potential legal issues that may arise.

Time Savings

The administrative tasks associated with employee benefits administration can be extensive and take up a significant amount of your team’s time, preventing them from focusing on important core business operations. Outsourcing employee benefits to a PEO company allows you to reclaim those hours. Tasks such as benefits administration, enrollment, and answering employee questions are off your team’s plate, giving your managers back valuable time to focus on growth and strategic initiatives.

The sheer volume of paperwork and deadlines involved with benefits management is reduced substantially when you have a PEO partner. Their streamlined processes ensure smooth operation, making benefits administration more efficient and less time-consuming for everyone involved.

Increased Efficiency

outsourcing employee benefits to a PEO companyWorking with a PEO company leads to a more systematic approach to managing employee benefits. With the help of advanced technology and professional expertise, enrollment processes, benefits administration, and claims management can be operated with improved accuracy and speed.

Furthermore, many PEOs offer online platforms where employees can easily access their benefits information, enroll in programs, and update their details. This autonomy not only empowers your employees, but also enhances the overall efficiency of your HR department.

PassioHR Can Elevate Your Employee Benefits Program

Whether you’re struggling to offer competitive employee benefits or simply lack the resources to manage this complex task in-house, working with a PEO company may be the right option for your business. PassioHR is a full-service PEO company with extensive experience managing employee benefits programs for small and medium-sized businesses. Our team can help you develop a customized solution that elevates your employee benefits program and provides your team with the important coverage they need.

We offer a wide range of benefits programs to address any need you may have, including:

You’ll also benefit from our Elevated Engagement Plus™ Approach focused on helping you create a more successful and inspired organization. This collaborative approach to HR consulting ensures we understand your specific needs and goals for your employee benefits program. Based on the information you provide us, we’ll leverage our extensive network of benefits partners to provide you with customized solutions that will address your needs in the most efficient and cost-effective manner. You’ll have peace of mind that your team is receiving the quality benefits they deserve, and your internal team will have more time to devote to other important tasks that are critical to your ability to grow your business.

Contact us today to schedule a free consultation.

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