Navigating the intricate landscape of human resources, payroll, benefits and compliance can often feel like a daunting task for businesses. This is especially true for small and medium sized businesses with limited resources. In many instances, you may find it beneficial to outsource these services to a PEO company.
A professional employer organization (PEO) company provides comprehensive HR solutions to businesses. These companies enter into a co-employment relationship with your business, assuming responsibility for a wide range of employee administration tasks, from payroll and benefits administration to compliance and risk management.
What Services Does a PEO Company Provide?
PEO companies can assist with a wide range of important services that are essential to running your business, including:
Payroll – PEO companies can handle your payroll processing for you, ensuring all employee paychecks will be accurate and delivered on time.
Employee benefits – Due to their purchasing power, PEO companies have access to high-quality employee benefits packages at an affordable price, enabling your business to offer cost effective health insurance, dental care, and other important benefits that typically wouldn’t be available if you tried to secure these packages on your own.
HR compliance – HR regulations are constantly evolving, making it challenging for an in-house team to keep up with the latest changes. PEO companies can handle HR compliance matters for you, ensuring you avoid costly fines and penalties.
Employee engagement – Maintaining high levels of employee engagement is critical to cultivating a productive team. PEO companies can work with you to make sure your team is happy, productive, fully engaged in their work and aligned with your company vision.
HR consulting – Many businesses lack the resources for an in-house HR team. PEO companies can provide robust HR consulting services to help you manage the most challenging HR situations correctly.
Retirement programs – Offering an effective 401(k) retirement plan is an essential benefit that businesses must provide to their employees. PEO companies can help you manage your 401(k) retirement plan in a cost-effective manner, setting up deductions and educating your employees about their options.
Recruiting and hiring –Recruiting and hiring the best talent is critical to the long-term success of your business, but it’s also a time-consuming and challenging task. PEO companies can manage every aspect of this process for you – from creating the right job postings to salary negotiations – to ensure you hire the right employees to fit your culture and meet the requirements of the position.
Benefits of Working with PEO Service Company
You’ll experience a variety of important benefits when you work with a PEO service company, including:
Comprehensive HR expertise and support
Cost-efficiency and savings
Access to enhanced benefits packages
Compliance and risk mitigation
Comprehensive HR Expertise and Support
When you work with a PEO service company, you’ll gain access to a team of HR professionals. These experts handle HR-related tasks with precision and efficiency, allowing your team to focus on your core objectives while leaving these complex HR matters in the hands of dedicated professionals.
Cost-Efficiency and Savings
Working with a PEO company can save you money in a variety of ways:
The cost of outsourcing these services is typically much less expensive than the cost of paying salaries and benefits for dedicated employees to manage these tasks in-house.
By leveraging a PEO company’s infrastructure and expertise, your business can benefit from economies of scale, reducing overhead costs associated with HR functions.
Access to Enhanced Benefits Packages
PEO companies typically provide access to extensive benefits package options that may not otherwise be available to your business. This can be a game-changer for smaller businesses competing to attract and retain top talent. When you work with a PEO company, you can offer competitive benefits packages that rival those of larger corporations.
Compliance and Risk Mitigation
Staying compliant with ever-changing regulations can be a challenge. PEOs specialize in navigating this complex landscape, ensuring your business remains compliant with all labor laws, reducing potential legal risks.
How PEO Companies Work
PEOs implement a co-employment model that divides different employer responsibilities between the PEO and your internal team. Your team retains control over day-to-day operations, while the PEO company manages HR-related tasks and assumes certain liabilities.
PEO companies seamlessly integrate their services into your operations, adapting to the specific needs and goals of your company. This allows them to offer customized solutions that align with your unique business model and company culture. They also establish effective communication channels, ensuring transparency and facilitating a smooth flow of information between their team and yours.
Choosing the Right PEO Company
Choosing the right PEO service company is critical to achieving your desired results from this partnership. The following steps will help you get this important decision right:
Evaluate your needs and objectives – Assess your current HR needs and objectives prior to researching PEO companies. Once you’ve identified your existing pain points and have outlined your specific requirements, it will make it easier to choose a PEO company that aligns with these needs.
Research PEO companies – Evaluate the reputation, experience and track record of potential PEO partners. Reviewing client testimonials and case studies can provide valuable insights into what you can expect when you work with a particular PEO.
Assess services and offerings – Compare the services and offerings of each PEO company you’re evaluating. While it’s important to make sure they offer all the services you require, you should also look beyond these basics and consider additional value-added services that might benefit your business in the long run.
In addition to these steps, make sure any PEO company you work with:
Has a strong track record and fiscal stability
Provides comprehensive support and compliance expertise
Offers services and coverage where you do business
In addition, you’ll benefit from our Elevated Engagement Plus™ Approach focused on helping you create a more successful and inspired organization. As part of this exclusive approach, we take the time to learn about your unique company culture and workforce dynamics. This allows us to more clearly understand your specific HR needs and recommend the right combination of services to achieve your goals. With our Elevated Engagement Plus™ Approach, you’ll be able to outsource the tasks that aren’t practical to manage internally, while retaining the flexibility to handle other functions in-house.
Roger Hays currently serves as President and CEO of PassioHR, Inc., based in Englewood Colorado. PassioHR was founded in 2021 by Roger after having spent over twenty years working in various positions in the Professional Employer Organization (PEO) market.
His areas of expertise are Human Resources management; Benefits Administration; Government Affairs; and Business Management.
Mr. Hays currently serves as the Chair the Leadership Council for NAPEO in Colorado and serves on their PAC committee, Federal Government Affairs and State Government Affairs Committees as well. In addition to NAPEO Roger is a past Leadership Council Chairman for the National Federation of Independent Business (NFIB) in Colorado and serves on their PAC committee as well (NFIB is the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals). He is a past Board President for the Colorado Civil Justice League (Colorado Civil Justice League is the only organization in Colorado focused exclusively on limiting unreasonable lawsuits and preserving common sense in the courtroom). Roger has been appointed by the Governor of Colorado, three times, to serve as a Board member on the Colorado Uninsured Employers Board. (The CUE board was established by the CO legislature to provide financial assistance to individuals injured while working for employers who did not carry workers’ compensation insurance in violation of Colorado Statute.)
Roger spends many hours each Legislative session working with state Legislators in Colorado on behalf of the PEO industry as well as small business in general testifying in front of committees or just interacting with individual legislators on issues important to those groups. He also works with the Colorado Department of Labor and Employment, serving on a number of taskforces to help guide the department in dealing with Unemployment and Labor issues.
Mr. Hays Graduated from North Dakota State University with a BS Degree in Political Science and is an avid Bison supporter.
PEO companies can assist with a wide range of important services that are essential to running your business, including:
You’ll experience a variety of important benefits when you work with a PEO service company, including:
Choosing the right PEO service company is critical to achieving your desired results from this partnership. The following steps will help you get this important decision right: