Staff shortages, changing marketplaces, and keeping in compliance with new regulations are all common problems that businesses today face, and these are just some of the reasons that more companies today are enlisting the services of a Professional Employer Organization like LBMC Employment Partners. A PEO is a great option for your business, and it can also be a powerful tool for your employees.
Why use a PEO?
A PEO can help make life easier for both employees and employers by providing quality, compliant, and up-to-date HR services. Using a PEO frees companies from hiring and maintaining a full in-house HR department, while still giving the business the benefits of a full-service department.
PEOs manage a number of different businesses and employees, which is an advantage to its customers. A PEO’s number of members allows them to negotiate with healthcare companies and other vendors as one large unit. While small companies may struggle to get these benefits on their own, PEOs can secure perks usually reserved for only large companies. These include savings on healthcare and benefits, discounts on employee’s personal car or renter’s insurance, or bonus perks like telehealth services.
PEOs also help navigate the increasingly complex healthcare marketplace, ensuring that businesses receive packages that work for both their employees and their budget.
What can a PEO do for my business?
PEOs take a tailored approach to every business they work with. They can perform everything from daily management of HR tasks, like payroll processing, to more complex tasks that can help grow a business, like delivering employee training. In all of their work, PEOs are compliant, which helps limit the legal liabilities that businesses take on. A PEOs ability to negotiate competitive benefits packages also helps companies remain competitive in this tight job market.
A 2018 social-hire study found that companies that use PEOs are 50 percent less likely to go out of business. Another study found that PEOs helped decrease employee turnover by 10 to 14 percent.
PEOs can also help a business grow. Outsourcing a non-core function, like HR, gives businesses a chance to direct all their attention to their mission and on building revenue.
Want to learn more about LBMC EP’s PEO services? Contact us today.