PEOs Remove the HR Burden
Consider a Leasing PEO to Relax the HR Burden.
Ever since you were a young child you’ve dreamed of running your own successful business, and throughout your life you’ve worked to achieve this dream until finally you found yourself at the head of a lucrative small business. However, as most small business owners would agree, payroll, human resources, and risk management were never a part of the plan. As a result, you may have difficulty keeping your employees happy, or rather, just keeping your employees at all! If HR issues just aren’t your thing as a small business owner, then you might seriously think about a leasing PEO Company, which can Outsource HR.
Of course it may be somewhat of a stretch to compare leasing your employees to leasing your new car, yet surprisingly, the decision is fundamentally similar. Basically a leasing PEO hires your preexisting employees, and takes over the responsibilities of payroll, workers compensation, taxes, employee benefits and so on. So, although there is no change in the operations within your company because your employees continue what they have been doing, ninety percent of the administrative burden is lifted from your shoulders. Essentially a leasing PEO takes on the role of your Human Resources department and simplifies the whole process for you - you just pay one set amount of money every time payroll rolls around and you’re good to go. As a small business owner, you can wash your hands of the HR issues that used to get you down and get back to what you love about owning a small business: making a profit.
Today, employee leasing companies are more effective and beneficial than ever. Not only do they provide a multitude of services to the firm or client, but they can often be very favorable to the employees. Seeing as PEOs are often much larger companies than your own small business, they are able to provide the employees with greater benefits and cheaper insurance. For small businesses especially, a PEO or employee leasing company can be advantageous to both the employer and the employee for a variety of different reasons, including the following:
More diverse health insurance benefits for employees
Enhanced payroll services for the employers because of outsourcing payroll
Risk management support
Employee training and development
Employee discount programs
Of course, a leasing PEO may not be the best decision for all business owners. If you do decide to hire a leasing PEO, the PEO company then holds the right to hire and fire employees, a burden for many business owners. For others, however, this is both a power and a privilege which they enjoy. Although you, as the manager or owner, still supervise and direct your employees on a daily operational basis, the employment of your workers ultimately rests in the hands of the PEO. When considering hiring a professional employee organization, you must decide if you would like or be willing to have a company take on the responsibility of hiring and firing employees.
Just like leasing a car or home, leasing your employees is a very big decision for your company and several factors must be considered. If your employees are receiving good benefits, are happy with their job, and have no intention of leaving, a leasing PEO may be unnecessary and may only incur more costs and cause greater harm than it will provide benefits. However, if you find yourself in the opposite situation, a leasing PEO can put your company back on track and in the black.
About the Author
Carolyn Stoll Sokol is a frequent contributor to PEOcompare and writes about issues that may affect small businesses such as workers comp. She is a founder of PEOcompare.com which helps match small businesses with PEOs, for exampe in PEO Illinois or PEO California for their particular needs. Her background is in marketing and communications, employee education and training, development of policies and procedures and the ongoing delivery of outstanding service to customers.
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