What do you think are the most important assets for a business? A great idea, resources, capital, etc. Yup, all these are important assets that will help you in taking your business to new heights. Let’s add another important asset to this list, employees. There is no doubt that employees are one of the most important assets for any business. They stand right by you and work together with you to walk your business towards success.
Your employees come up with the most innovative ideas that can help your business. Not only do they come up with ideas they also work hard to implement them too. As you already know, with constantly changing trends and customer preferences in the business world, only the employees can help the businesses grow. Not only that employees and the work culture are what differentiates the companies from their competitors.
The right employees can bring in good energy and ideas to the table. So businesses put a high emphasis on hiring the right people. But the truth is hiring is not an easy task? From interviews to appointments there are hundreds of things that need to be taken care of. Also not to forget that sometimes your judgement can be wrong. And then you’re back to square one of your recruitment process. As you see, there is a large amount of money involved in the recruitment process. Especially for small businesses that are on a shoestring budget, they can’t compromise on the employees. But that doesn’t mean that can ignore HR demands. As the business grows they also increase.
What to do then?
Having an HR team is important for a business. Not only do they help you hire the right personnel but also help you in fine tune and economize a few aspects of your business. The HR-team will act as advisors and guide your business on all the issues related to employees. There are only two solutions to this situation. One, in-house HR team. Two, a PEO.
If you want to hand-pick the right specialists who will guide and help you resolve issues relating to your employees, then In-house HR is perfect for you. However, you must know that the In-house HR team is an expensive affair. Wondering if there is an alternative to it. Yup, there is i.e., PEO.
Before you move forward, first you must know about PEO.
What is PEO?
PEO (Professional Employment Organisation) is an organization that will enter into a co-employment relationship with your business. Simply put, they will handle all the responsibilities relating to HR such as Payroll and other employee benefits. PEO/Employee Outsourcing usually help small and medium-sized businesses with HR responsibilities. And they are best at what they do and take good care of your employees.
As you already know, running a business is not a small responsibility, there are millions of things that need your attention. And also spending a lot of money on research can dry out your pocket. Because of these reasons most employers put behind employee benefits. But they forget that employee benefits boost the morale of their employees and motivate them to work harder. If you want to take good care of employees while boosting your business then it is advisable to opt to PEO. Employee outsourcing will free up a lot of time and help you in concentrating on other important aspects of your business.
Still not convinced on why a small business needs a PEO? Then, here are a few reasons that will convince you.
Saves Time and Efforts
Opting for PEO will be one of the best decisions you will ever make relating to your business. As you see, when you give all your HR-related responsibilities to PEO you will have time to deal with revenue-generating activities. You’re a small business owner who is responsible for your employees too. So you have to make important decisions and take care of tasks like tax reporting & filing, payroll, etc all by yourself. Although these administrative tasks are important, one cannot deny that they are time-consuming and take a lot of time away from your business. You must always have an eye out for competitors and the latest business trends. Amidst that, you have to handle all this HR-related work too. It can be really hard. Taking too many responsibilities on your shoulders will only give you stress. Handle the HR-related responsibilities to the experts and utilize all the extra time to further your business.
Hiring made easy
Hiring is a daunting task and not to forget it is expensive too. Posting for an open position then filtering resumes, shortlisting the candidates and calling them for an interview (at least 2 rounds). Seems like a huge responsibility. And it takes a lot of time, effort and money. But with PEO your burden will be reduced to the half. They will bring you the cream of the crop. PEO will have access to different kinds of recruitments networks. So bringing you top candidates is not a big deal for them. You can skip all the steps of recruitment, all you have to do is interview the top candidates. As you would not be exhausted from all the recruitment process, you will be able to make the best decision for your team. But one thing that you need to know is that the less involved in the recruitment process, the less control you will have on which resume land on your desk. So it is your call to decide how far you want to be involved in the hiring process.
Tracks employees performance
Business can only function well when their employees perform well. It is more essential for small businesses, as they are a small team they have to track their employee’s performance to know that they’re on the right track. However, without managerial experience, it is a tough task to actually track the employee’s performance and give them constructive feedback. However, PEO has advisors who are specialists that know how to track your employee’s performance. It provides you with employee tracking software, which you can use according to your wish. Their performance reporting structure will surely help in getting on the same page with your employees and talk about areas that need improvement and reach your business goals together. Another best thing is that they provide you and your managers with coaching so that you can talk effectively about your employee performance.
Payroll, taxes & Employee benefits
For employee benefits, PEO is the best. Also one of the downsides of small business is that they have to play all the roles including an accountant. But, the thing is, unless and until you have studied finance it is quite hard to know the in’s and out’s of the law. So hiring an accountant seems like the best option, right? The best part is PEO can help you with this too. They provide you with payroll services in which they deduct the right amount of taxes from each of your employees’ salary every month. They will also provide you with an account manager, who will help you in managing state and federal taxes. Along with that most of the PEO’s also offer platforms where you can check the tax information of your business. Apart from payroll and tax benefits they also offer other employee benefits such as retirement savings. As you see there are common benefits such as 401(k). In such benefits, the employer selects a plan for their employees under which they can help their employees save money for retirement. However, choosing a plan can be a daunting task for the employer. With PEO guidance you will know which plans to choose. Also, you will have a lot of options to choose from. It also manages workers compensation insurance too.
Improve growth rate
If the reasons above are not enough for you to be convinced. Here is a bonus reason. Businesses that opt for PEO have higher business growth rate compared to the business that doesn’t opt for it. Businesses that opt for the PEO are 50% less likely to fail or completely go out of business. As you see most of the start-up’s and small businesses find it hard to serve in the industry for more than a year. With PEO’s guidance, the small business can reach new heights. Also, the employee turnover rate will also lower. Retention of employees means that the company doesn’t have to spend their funds on recruiting frequently and since the team is together for a long time they will have amazing teamwork too. When your employees are putting their best foot forward what will stop your business from growing. Don’t you agree?
Employee outsourcing has been a common occurrence in the past few years. If you want to spend all your time taking your business to new heights. Then you must share your HR responsibilities with PEO. They are experts and know how to handle all your HR-related issues and provide the best benefits to your employees. From flexibility to recruitment they provide you with different services that will help you in growing your business.