Are you using a PEO for all of your HR function needs? If you’re a business owner and the answer to that question is no, then you need to read on to see if these seven reasons to outsource your human resource functions to a PEO is worth it for your business.
Let’s start by talking about what a PEO is. It stands for Professional Employer Organization and it is essentially a company you contract with to handle all of your human resource needs. These can vary from company to company, but they include things like payroll, benefit enrollment, compliance and risk management, and customer service.
Making money is the name of the game in business but saving money where you can helps you get ahead of your competition. Outsourcing your HR functions can save you quite a bit of money, especially while your company is growing. They are not a one-size-fits-all service, so to see which PEOs serve your area head over to retireat21 and use the locator tool.
So what are the biggest reasons to outsource your HR? Here are 7 that can help you decide if this is the way you should go.
They Handle Your Payroll.
Payroll is a tough job. Making a mistake in payroll can lead to upset employees and can even lead to job openings if an employee is angry enough. Alternatively, it can lead to lost money as an employer if wages are paid higher than what they should be. Having a designated person for employees to call with payroll-related questions takes the ball out of your court and you still can trust the employees are getting the best answers and are still well taken care of.
It Saves You Money
Jobs like Payroll Specialist come with a lot more than just the responsibility of running payroll. They also come with a salary, benefits, days off, and any other perks your company chooses to offer. This can quickly add up. Additionally, you will need a backup payroll processor in the event that your employee is unexpectedly out. While this is usually just an employee in a similar role who is cross trained, it also means man hours of training that employee and the productivity that is lost for that employee when they have to step in to do payroll. It quickly adds up.
Help With Recruiting and Onboarding
Much like payroll, recruiting and onboarding is an important function in a business. If an employee is not onboarded correctly, they can lack the knowledge of company policies and procedures and cause time lost due to no fault of their own.
Recruiting takes patience and manpower. Sifting through resumes to find candidates that qualify for an interview can be daunting, especially when you get hundreds of applicants for one open spot. Having an HR team contracted out that can handle this and simply schedule the interviews for you can give you all of that time to focus on other areas of your business.
Time and Attendance Tracking
Time and attendance tracking is a part of every business, but something that can once again take a lot of time depending on the number of employees you have. In industries like healthcare, you can be talking about hundreds of employees that work different shifts and have different hour designations. Sifting through all of the employees to track issues can take a whole day. PEO companies offer this for you so that you can quickly open a report and see what actions you need to take. Once again, a big time saver.
Paperwork is a part of businesses everywhere. There is always something that needs signed or filed, but keeping track of all of these things and finding the space to store everything can prove difficult. Outsourcing your HR functions means that a lot of the paperwork you would need to store can now be found electronically with the original paper file being kept by the PEO if necessary. This reduces clutter, which helps to make you more productive.
Benefit Enrollment Handled
Like payroll and onboarding, a PEO can also handle your benefit enrollments. While new benefit enrollment is not really grueling, open enrollment in a business with hundreds of employees can be a huge time saver.
Someone to Handle Your Compliance
No one wants to be out of compliance with state and federal mandates and regulations. Having a PEO working with you can ensure that you are in compliance and up to date with everything in your industry. Some even offer trainings to your employees to keep everyone up to date.
There are so many reasons why outsourcing your HR to a Professional Employer Organization will help your company be successful, these are just a few of the key reasons.