By providing comprehensive HR solutions, including payroll services, benefits administration, and compliance assistance, professional employer organizations (PEOs) play a key role in the growth and success of many small businesses across the country.
To highlight their important contributions, National PEO Week is celebrated each May, this year taking place May 19-25, 2024. For those unfamiliar with how PEOs can make a difference, here are five reasons your business should consider their expertise and resources.
Efficiency and Knowledge: Managing human resources can be complex and time-consuming, especially for small and medium-sized businesses with limited resources. By outsourcing HR functions to a PEO, businesses can tap into a wealth of expertise and resources without the need to hire an in-house HR team. PEOs, like SynchronyHR, have dedicated professionals who specialize in HR management, allowing businesses to focus on core operations while leaving administrative tasks and compliance worries in capable hands.
Cost Savings: Cost containment is a top priority for businesses in every industry. Working with a PEO can often lead to significant cost savings by consolidating HR-related expenses. PEOs leverage economies of scale to negotiate better rates for benefits such as health insurance, retirement plans, and workers' compensation. Additionally, by outsourcing HR functions, businesses can avoid the overhead costs associated with maintaining internal HR infrastructure, such as software licenses and employee training.
Access to Comprehensive Benefits: Offering competitive employee benefits is essential for attracting and retaining top talent. However, providing a diverse range of benefits can be challenging for small businesses with limited budgets. PEOs enable companies to offer comprehensive benefits packages typically only available to larger corporations. These plans might include health, dental, and vision insurance, retirement plans, flexible spending accounts, and wellness programs. Access to robust benefits can enhance employee satisfaction and morale, leading to higher retention rates and increased productivity.
Help Navigating Compliance: Navigating the ever-changing landscape of employment laws and regulations can be daunting for businesses, especially those operating in multiple states or jurisdictions. PEOs can assist with federal, state, and local regulations, including payroll tax filings, unemployment insurance, and workplace safety requirements. By staying abreast of legal developments and best practices, PEOs help mitigate risks and protect businesses from potential liabilities, such as fines, penalties, and lawsuits.
Focus on Core Business Objectives: In today's competitive environment, businesses must remain agile and adaptable to stay ahead. Outsourcing non-core functions such as HR allows companies to allocate more time and resources toward strategic initiatives that drive growth and innovation. By partnering with a PEO, businesses can streamline administrative processes, reduce administrative burdens, and free up internal resources to concentrate on core business objectives, such as product development, customer acquisition, and market expansion.
Interested in Learning More? By leveraging the expertise and resources of a PEO, businesses can position themselves for long-term success in today's competitive marketplace. SynchronyHR, an HRO firm based out of St. Louis and serving clients across the country, can help your organization learn more about the power of outsourcing HR. Get in touch with us today for a discovery call.