Benefits of Working with a PEO Company

Posted on: February 8th, 2023 by

Professional employer organizations (PEO) provide a wide range of services to support small businesses, freeing up their in-house teams to focus on tasks that are essential to achieving long-term growth and success. A PEO company acts as a dedicated partner that can handle a wide range of HR functions.

Working with a PEO company offers many benefits, especially for small and midsize businesses who lack the resources to manage these HR tasks in-house. You can reduce stress and save your business countless hours by outsourcing functions that aren’t essential to be performed by your team. Experience the following advantages when you partner with a PEO company:

Improve Your Ability to Recruit Top Talent

It can be extremely challenging to find the most talented and qualified people to fill open positions at your company. Not only must these applicants possess the skills and work ethic to perform the job well, but they must also align with your company culture if they’re truly going to thrive in your work environment. Many small businesses lack the time, expertise and resources to target and evaluate a large pool of applicants. As a result, you may get stuck with a candidate who isn’t an ideal fit for the role or your company.

Outsourcing recruiting and hiring tasks to a PEO company and significantly improve the efficiency of this process. Your PEO company can assist with just about every aspect of the process, including:

You can collaborate with your PEO company to ensure they understand the specific demands of the position as well as the attributes that make a candidate a good fit for your core values and company culture. Since PEO companies possess extensive experience handling recruiting and hiring for businesses, they often are more skilled at asking the right questions and analyzing the skill sets of applicants than your in-house team will be. This not only allows you to cast a wider net when recruiting top talent, but it increases the likelihood that you’ll get important hiring decisions right.

Gain Access to More Competitive Employee Benefits Packages

better employee benefits packages with a PEO companyOffering employee benefits such as health insurance, retirement plans and other important perks are an important part of the compensation package you provide your team. Unfortunately, many small businesses lack the financial resources and buying power to provide competitive benefits packages that will entice quality talent to join your team and help you retain this talent for years to come.

Working with a PEO company significantly increases your ability to offer attractive benefits packages to your employees. Because PEOs manage the benefits packages for many companies, they have access to a wider range of plans than your business could offer on your own. In addition, PEOs can often offer you more competitive rates on these benefits packages since they are providing them for a much larger number of employees across numerous businesses.

Simplify Your Payroll

Managing payroll is often one of the largest hassles for small businesses. The various administrative accounting and payroll tasks associated with paying employees, processing payroll withholdings, filing W-2s and managing your books can be a full-time job. A PEO can handle all of these tasks for you. This either frees up the time of someone on your management team to work on other important tasks or eliminates the need for a full-time employee to perform this job. Either way, you’ll save a great deal of money by outsourcing your payroll to a PEO company.

Avoid Costly Fines Associated with HR Compliance Issues

There are many state and federal employment laws impacting your business. If you’re unable to keep up with the changes in these regulations and requirements, you run the risk of incurring costly fines.

PEO companies have an entire staff focused on handling HR compliance. They understand the specific employment laws governing each state they work in, and they stay on top of the changes that occur to these regulations over time. This ensures you will always remain compliant of all employment laws and regulations, avoiding expensive fines that can impact your bottom line.

If you have a remote workforce, it can be even more challenging to avoid compliance issues since you’ll need to adhere to the laws governing every state where you have employees. A PEO company will provide the expert assistance you need to ensure you avoid unnecessary legal issues.

Build a Stronger Company Culture

build a strong company culture with PEO company employee engagement servicesBuilding a strong company culture is essential to the success of your business. It will help ensure your employees remain fulfilled and improve your ability to retain them long term. PEO companies have extensive experience consulting on employee engagement matters. They can work with you to create policies that will build a strong culture that keeps your team engaged in the work. This will improve performance and productivity, allowing your business to grow and thrive over time.

PassioHR Can Help Your Business Thrive

At PassioHR, we offer comprehensive PEO services for small and midsize businesses. We work with businesses in a wide range of industries, and we have the experience to handle just about any HR or payroll need you may have.

Our unique Elevated Engagement Plus™ Approach is focused on helping you create a more successful and inspired organization. We take the time to learn about your unique company culture and workforce dynamic. This helps us understand your specific goals and the challenges your business is currently facing. We’ll then work with you to create a custom program focused on your ongoing success. We’ll cater the services we recommend to the specific needs of your business, allowing you to outsource any tasks that don’t make sense to continue managing in-house.

Contact us today to schedule a free consultation.


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