Can my company benefit from PEO?
You may be a business owner or perhaps an HR manager and want to know how to smoothen business operations. Many are found to be hesitant towards using a PEO. You may wonder if your organisation is big enough to derive benefit by hiring peo services!
The truth is most companies can benefit from PEO professionals. The average company hiring PEO are found to have employees ranging around 10 to 100! As it is a large range, it does encompass diverse unique businesses. The fact is employee size cannot be taken as an indicator whether or not PEO relationship will benefit the company or not.
Several other factors can help determine if working along with the PEO professionals will be a great idea for the organization or not. Getting to know the indicators in details can help explore using such professional services.
Is the organisation growing? Is there a desire to grow the company?
With companies growing they do experience lots of new hurdles on their path to progression. This is because they are required to hire more employees as well as comply more stringent laws. A few struggles faced are employee policies, handbooks, new hire paperwork and procedure manuals. Besides this, another major task involves making prompt response to unemployment claims. This can be somewhat confusing as well as time consuming. Quite often, there might arise the need to call up the attorney to know how to make proper and correct response. It is necessary to understand that small businesses do require growth opportunities. This may also mean key managers and owners have to work a lot behind the scenes.
Taking help of the PEO
The PEO company can provide all or a few of transactional HR activities, most of which growing businesses are found to struggle with. They range from help with the hiring efforts to providing employee handbooks to filing process. It also includes responding to claims filed y former employees against the company. The PEO has the essential resources to eliminate paperwork burden and worries. This helps your organization to grow and develop at desired pace.
Does your organization consider cash flow as a vital aspect?
One aspect that can be extremely expensive and confusing is workers’ compensation insurance. Usually, it is required based on the number of employees the organization has in its payroll. Typically, on purchasing workers’ compensation from the insurance agent, you will be requested to estimate payroll during the policy year’s start. You will also have to pay down payment combined with monthly instalments, followed by audit process. Then audit premium is to be paid by the policy year end. Usually, it coincides with down payment to be paid the following year. In this particular arrangement, at specified time of the year, organizations might have to write bigger checks. This might hamper cash flow.
A few PEOs do claim to have in place a master and functional workers’ compensation plan. Your organization needs to be eligible enough to participate in this plan. Thus, purchasing workers’ compensation coverage especially from the best peo services does help enhance cash flow. The PEO would then in real-time bill the workers’ compensation premiums. This will be based upon the payroll cycle. There is no need to make any down payment or have to undertake an audit. Thus, your organization can witness cash flowing all the year round without any unwanted interruption.
Is there a work-related injury faced by your employees?
The amount of risk involved in the job is what determines workers’ compensation premiums. Hence, more risk means having to pay more premiums. However, by developing appropriate safety programs can help lower the premium amount. Also, will be necessary to provide managers and employees with ample training opportunities, hire certified safety manager. Equally important is having the latest safety manual. In case the insurance carrier or agency fails to offer such assistance in these areas, then third party consultant or safety trainer will have to be hired. The objective here is to ensure the job site and employees are safe at all times and free from unwanted injuries.
A few PEOs are found to have on staff ‘Certified Risk Managers’. They can assist you to keep your employees safe at the workplace. They also take greater control of the workers’ compensation premiums. Such risk managers are well-trained to provide assistance with safety manuals and procedures. They can also come up with Drug-free Workplace Program while handling claims as and when they arise.
Is there in place proper employee benefits program? Is there planned in the future?
It is tough for any company, be it small or big to identify, hire as well as retain talented employees. A major driver involved in hiring and retaining good employees will be to launch employee benefits program. This program might include different types of components like 401(k) retirement plan, health insurance, discounted movie tickets and Employee Assistance Program! Managers and business owners often get confused when trying to develop an affordable and functional benefits package. Employees should find it attractive, and it also needs to be a hassle-free one.
Therefore, working with the experienced PEO company can help solve this issue. They can provide most of the services at competitive rates. Besides this, if your organization procures employee benefits from the PEO company, you can expect the professionals to manage such benefits administration. It helps eliminate your liability and burden while allowing you to work freely.
Processing own payroll?
Own payroll processing will only mean consuming lots of energy and time during each payroll period. It also carries own fiduciary liabilities. It could be that there are extra payroll complications faced like wage garnishments, pre-tax benefits deductions, tax filings to be done in multiple states, commissions, etc. If so, then in-house payroll processing can prove to be a full-time job. The knowledgeable PEO can manage all payroll related aspects and eliminate burden of energy, time and time. They will also use the latest attendance and time software as well as HRIS (Human Resource Information-System) to make the entire process seem easy and quick.