Highlights
- Administrative tasks, such as processing payroll or handling employee benefits enrollment, can consume precious time for small businesses.
- Professional Employer Services (PEOs) can alleviate this burden while providing access to competitive benefits, top-notch technology, and HR compliance support.
- LL Roberts offers PEO services for small businesses seeking to streamline HR, reduce costs, and improve efficiency. Contact us to learn about our flexible solutions!
For small business owners, the burden of routine HR tasks can be overwhelming, taking time away from more revenue-oriented activities. If that’s your case, Professional Employer Organizations (PEOs) can help.
By relieving the weight of administrative tasks such as accurately calculating salaries or managing employee benefits, your internal team can have more time to focus on their core mission. Discover the 7 PEO benefits that can simplify HR for your small business, improve employee satisfaction, and drive growth.
Let’s dive in!
What Is a PEO and How Does It Work?
A PEO is an HR outsourcing firm that allows businesses to delegate many of their HR functions, including payroll, employee benefits, tax administration, and regulatory compliance to a team of experienced professionals.
PEOs work under a co-employment model, where both entities (the client company and the PEO) share responsibility for certain aspects of employment.
For a small business, this might play out like this: a PEO provides services like payroll processing, employee benefits administration, and workers’ compensation management, while your company controls day-to-day operations, managing employees, and business decisions.
By partnering with a PEO, you can focus on running your business while the PEO handles the complex, time-consuming administrative HR tasks. Working with a PEO can be especially beneficial if you are running a small or mid-sized business, allowing you to access big company benefits and HR expertise at a fraction of the cost.
7 PEO Benefits for Small Business Owners
Let’s explore the main PEO benefits for small business owners:
Cost Savings
PEOs can negotiate favorable rates for employee benefits, workers’ compensation insurance, and other services due to the large number of employees they represent across multiple client companies. This can lead to significant cost savings for small businesses.
At the same time, PEOs can help reduce overhead costs associated with maintaining an in-house HR department.
Competitive Benefits
Partnering with a PEO allows small businesses to access affordable and comprehensive employee benefits packages. PEOs leverage their large pool of employees to negotiate better rates and plans for benefits like health insurance, retirement plans, life insurance, and disability coverage.
By offering more competitive benefits packages, small businesses can level up their game, attracting and retaining top talent while keeping their costs manageable.
More Time to Focus on Core Operations
Small businesses often lack the resources to maintain a dedicated HR team. By outsourcing time-consuming back-office responsibilities like payroll, HR, and benefits administration to a PEO, you can dedicate more time, energy, and expertise to driving growth and innovation within your company.
All this comes with the peace of mind of knowing that HR compliance, paperwork, and processes are in expert hands.
Expert HR Compliance
One of the top PEO benefits is ensuring compliance with complex and ever-changing employment laws and regulations. By partnering with a PEO, small businesses can stay up to date with federal, state, and local labor laws, avoiding costly penalties and legal issues.
PEOs employ a team of HR experts who are well-versed in all aspects of employment law, from wage and hour regulations to anti-discrimination policies. They are constantly monitoring changes in legislation, freeing you from the burden of navigating a rabbit hole of employment laws on your own and providing expert support at every step of the way.
Improved Efficiency and Accuracy
Working with a PEO can streamline administrative tasks, making your small business more efficient, while reducing the risk of costly errors.
PEOs leverage technology and robust systems to improve daily administrative tasks, whether those are onboarding new hires and preparing HR paperwork, or ensuring tax forms and payments are submitted on time.
Access to Top-Notch Technology
One of the main advantages of partnering with a PEO is gaining access to specialized software and technology that might be out of reach for small businesses. From applicant tracking software and time and attendance tools to sophisticated payroll platforms, PEOs offer an array of tools to improve efficiency, save valuable time, and minimize the risk of errors.
Enhanced Risk Management
By partnering with a PEO, you can significantly reduce workers’ compensation costs and improve workplace safety.
PEOs can negotiate lower workers’ compensation premiums with insurance carriers, and implement proactive safety programs, including training and regular safety audits. This not only creates a safer work environment for your employees and reduces the likelihood of accidents, but also minimizes disruptions and protects your business from potential legal liabilities.
Simplify HR for your Small Business
Whether you have a small HR team juggling multiple tasks or want to offer more competitive benefits without going out of budget, exploring the PEO alternative can truly be a game-changer.
At LL Roberts, we provide PEO services tailored to your business’s unique needs. Our flexible solutions allow you to focus on what you do best, while leaving tedious administrative tasks in our hands.
Ready to take the next step? Contact us and explore how we can help your business.
