18 Mar Unexpected Benefits of Partnering with a PEO
PEOs, aka Professional Employer Organizations, work with companies like yours that are looking to outsource their Human Resources. While the cost benefit of partnering with a PEO is the primary driver for seeking out these services, there are a number of other, more unexpected benefits that a PEO can provide.
Money, money, money!
Even though we’ve already written an entire article outlining the expense reduction opportunities of partnering with a PEO, we’ve got to reiterate this fact again. Because there are many – some obvious, some less so, all great. Read this article to learn more.
Keep compliant with the ACA – without even trying.
Depending on the size of your company, you can see a massive reduction in the amount of time and effort spent on maintaining your ACA compliance. Right now, 44% of small and medium sized businesses are not confident that they are keeping up with HR employment laws. But the same survey’s show that 81% companies using PEOs are very confident in their compliance with employment laws. That’s because it’s a PEOs full-time job to keep your company compliant, not an afterthought that might get forgotten about it the melee of daily operations.
Getting the stronger job candidates to say “Yes!”
The hiring process is rough. Just finding someone you want to hire is hard enough. But then those individuals that you begin to imagine joining your team have to actually accept your offer of employment. This can be harder than it sounds, especially in an improving economy and job market. PEOs have the ability to offer better benefits packages, which for some of the most in-demand candidates, can be the icing on the cake that seals the deal.
Reducing employee turnover (and the cost to rehire).
Similar to getting the right people to take the job in the first place, stronger benefits packages can go a long ways in keeping the best workers in their respected positions. Not only does this improve productivity and skill-level over time, it reduces the cost of rehiring and retraining new individuals. Win-win!
Turn Human Resources into a strategic branch of your business.
By outsourcing your everyday HR maintenance tasks, your Human Resources department can now focus on more strategic initiatives. Not used to thinking of HR as a strategic branch of your business? Not even sure what that would look like? Imagine a department than can focus on improved internal talent development, stronger metrics and analytics for employee productivity and performance, and innovative initiatives to propel human capital performance, instead of processing payroll and managing company benefits.
Achieve new growth like never before.
The secondary, and amazing, impact of a more strategic HR department is the business growth advancements that then take place. Having a stronger, better trained, and more specialized staff leads to better ideas, faster implementation, and new business development. And that growth is exponential. The more strategic your human resources are, that means all of your employees, the greater and faster your company will grow.
PEO’s have been known to save companies anywhere from 20% to 40% on health insurance benefit premiums and can help stabilize your renewals by pooling several thousands of companies into one large group. But the value of partnering with a PEO stretches far beyond the expense reduction advantages they are known to provide.