Do run a small or mid-sized business? Do you get frustrated with all you must accomplish each day? Maybe you're wondering if you should hire a PEO but aren't quite sure. Simply put, a PEO (Professional Employer Organization) is a company that provides outsourced services to employers. These include Human Resources, payroll, employee benefits, workers' compensation, employee recruitment, and more.
Here are four of the biggest signs that you may need the services of a PEO, along with a few considerations to keep in mind:
Spending Too Many Hours of Your Workday Resolving HR Problems
Spending too much time resolving HR problems is a huge sign that it's time to outsource and begin to get your time back. Stop and consider how many daily tasks relate to HR, including managing employee benefits, handling payroll and navigating employee conflict. Creating an internal HR department is very costly. Not only can PEOs offer more expertise and experience in HR, but they also save you money since you only pay for the time and services you actually need.
Feeling Overwhelmed by Government Regulations
Running a business today is much more complex than it used to be since there are always new regulations. Most business managers find staying current and complying with the various new regulations and rules to be overwhelming or even impossible. Failing to be compliant with government regulations can even lead to being fined. Consider how a PEO is an expert in both state and federal employment regulations and knows how to comply with them. Removing this stressful task from your plate can give you immense peace of mind.
A Lack of Good Employee Benefits
Are your competitors trying to attract your employees with five-star employee benefit packages? If so, this can be another "red light" it's time to hire a PEO. One of the foremost concerns many employees have is getting high-quality health insurance and benefits.
Often, business managers aren't as aware as they should be as to what their competitors are offering, regarding employee benefits. When you partner with a PEO, your business is more likely to receive the best employee benefits, including quality health and dental insurance as well as 401(k) benefits. PEOs are on the cutting edge when it comes to comparing benefit packages, knowing how to compete with other competitors and exactly which benefits attract the best candidates.
Payroll Taking Too Much Time
How much time are you spending on payroll? What's more, are you sure that the figures you report on your payroll tax form are correct? What about 401(k) deductions for your employees? Are you reporting them on time, and are they calculated accurately? When you're forced to devote too much time for making sure payroll is done properly or you must correct errors, you don't have much time left for running your business. On the other hand, taking shortcuts on this important aspect of your business can lead to serious consequences, including fines.
Not Having the Time Needed to Monitor Employees
When you don't have enough time to keep tabs on how well your employees are performing, it's easy for mistakes to occur. Usually, this becomes obvious when customers complain. When this happens, you can easily become irritated with your employees, diminishing staff morale. Even worse, you can lose employees and clients. This doesn't have to be a problem when you have a PEO to help implement best practices that create a positive and productive workplace.
Other Considerations and Warnings
- Consider how low morale in a workplace can be contagious. Unhappy employees usually don't keep their feelings to themselves but are prone to spreading their grievances to co-workers. This can lead to other employees quitting with some not even giving you enough notice. When this occurs, it can be a sign that it's time to use a PEO.
- Hiring new employees who come from other states can be tricky when you don't know about applying state-specific policies.
- If new employees fail to enroll for benefits they (and their dependents) will go without medical insurance until it's time for open enrollment. Moreover, they may not fully know about all their different choices when it comes to benefits. With a PEO on your team, you can hand over the job of explaining benefits and ensuring that everyone signs up on time.
- In addition to helping you devise and use more effective HR methods for your business at its current size, PEOs provide solutions for your company as your business continues to expand and grow.
Get a Free Consultation From Harbor America
Why not join the growing number of employers who are teaming up with a PEO? Please contact us for a free consultation and learn how you can find more hours in your workday.