What Services Will A PEO Provide?
To help you meet your human resource challenges, a typical PEO provides four main services: HR assistance, benefits administration, payroll administration, and risk management. With these different services and tasks being taken care of, you will be able to focus more on your business operations and the daily production. A PEO makes it easier for a you to take care of your employees and business at the same time. Learn more about the services a PEO offers below.
Human Resources Assistance
The PEO functions as your offsite, outsourced HR department. The bottom line is that you will have more compliance for your organization while keeping your expert staff focused on meeting targets.
- The human resource professionals at the PEO offer consulting in sexual harassment, discrimination, Family Medical Leave Act (FMLA), and hiring and firing practices.
- PEOs will conducts background checks and pre-employment testing on potential employees.
- They will recruits employees through advertising, resume screening, and interviewing.
- PEOs will provides customizable employee handbooks and position descriptions to all employees.
- The PEO can conducts performance reviews.
- A PEO can also provides employee training for new positions.
HR tasks can become tedious and although these tasks are very important, they can take up more time that you may have. Reviews and interviews can become a speedbump in your busy day, and there are many things that you would probably rather be doing. But again, these things are important. That is where a PEO comes in. They can take these tasks over, leaving you time to worry about other matters.
Overcome Employee Benefits Challenges
Your PEO will seek out cost-effective benefits plans for your organization. By pooling employees from many different organizations into one group, the PEO is able to spread medical claims over a larger premium base. The bottom line is that your business will get lower rates, smaller annual rate increases compared to smaller businesses.
- PEOs typically offer the following benefit plans:
- Health care
- Long- and short-term disability
- Life insurance
- Section 125
- COBRA compliance
Because a PEO can help you get lower rates on your employee benefits, they can actually help reduce your turnover rate. Your employees will get better and less expensive benefits because a PEO is able to offer this. Since PEOs get group rates, they can offer your employees health benefits with premiums up to 15 percent less than the average. Which helps your employees become more satisfied.
The PEO will take responsibility for the range of payroll functions. This basically means that the PEO can provide your staff with great human resource services while management can pay attention to growing your business. A PEO can take care of the following payroll and HR services:
- Employee taxes
- Quarterly reports
- Workers’ compensation insurance
- Premium audits
- Claims management
- Benefits procurement
Why these tasks being taken over by a PEO is so beneficial is because it will allow you and management to focus on other business matters, from growing your business to overall services and production. This will help your business expand in the end and help you get to the point you want to be.
Handling Risk Management
PEOs can also manage any workers’ compensation or unemployment claims that arise, typically at a lower claim cost (as compared to what a company could achieve on its own). A PEO can help to minimize the risk pool and provide expert care for any claims which will help save you money and reduce your exposure. This may not seem like an important function in your business, but it only takes one accident or employee to change everything, being prepared with an expert in the field can help to minimize damage and keep your business running smoothly.