When the demands of running a business outweigh the time available, business owners turn to professional employer organizations (PEOs). A PEO is also widely known as an employer of record (EOR). Small business owners can benefit significantly from a PEO.
PEOs use a co-employment model to provide Fortune 500 benefits to small businesses. In a co-employment relationship, the PEO becomes the client company’s official employer, i.e., the employer of record. The EOR status means they can handle sensitive information such as payroll and employee benefits package information.
This article will guide you on what to ask to select the best PEO for your business needs. If you already know what you want, contact us to learn which services are best for your company.
Selecting the Best PEO for Your Business
Every PEO has client-type restrictions. Consider the following when looking for your ideal PEO:
1. Understand What You’re Purchasing
Before making any service purchase, you must be sure of the benefits you get from the PEO. Be sure to ask for a package breakdown. This way, you get a clear picture and understanding of what you are getting from PEO. If they don’t list an essential service you need, you have a chance here to request its inclusion in the package.
2. Examine Business Needs Before Enrolling
Understanding your company’s needs is essential before speaking with a PEO. What obstacles does your company now face? Do you foresee any changes in your business that could affect the services you require? Examine every company area, including payroll services, human resources, and risk and compliance management.
You can minimize the costs of payroll management and tax filing services by hiring a reliable PEO to handle your payroll services. You can save time and money by delegating these HR tasks, such as sourcing, hiring, onboarding, and retaining staff, to a PEO who uses HRMS technologies.
Managing your company’s risk alone might take time and money. Instead, contracting to a PEO might help you position yourself for a more stable future.
3. Enquire More Information on the Services You Anticipate From the PEO
PEOs serve as an extension of your company after you hire them. The PEO’s role as the EOR (employer of record) for your workers is to respond to your inquiries and your staff on employment-related issues.
It would be crucial to get some clarification on the following:
- Who will act as the daily Single point of contact for your account?
- Will a PEO specialist or HR adviser be assigned to you?
- Will you have a payroll expert on standby to answer your calls?
- Who will your workers have the right and freedom to call and make inquiries regarding their payroll and payslips?
4. What Software or Technology Does the PEO Employ?
The fundamental purpose of a PEO is to make your life simple, not more challenging. If a PEO’s HRMS platform is difficult to use, your company will find the PEO to be more of a burden than a benefit.
On the other hand, web-based payroll platforms come in handy for employees and compile everything required for back-office management in one location.
5. Ask for the Available Employee Benefits
In today’s world, candidates are after more than just a monthly salary. Candidates are searching for a wide range of perks like programs for medical insurance, a pension savings scheme, and a life policy.
Before deciding on a PEO, ensure you find out the advantages they can offer the staff. Additionally, confirm that they can create a unique benefits package that suits your staff members’ needs, ambitions, and lifestyles.
6. Do a Background Check on the PEO’s Reputation
Trust and transparency are vital in every business partnership. It will do you no harm to ask for audit reports, legal licenses, awards, and recognitions if available. Reviews from previous customers also do the magic with assuring the PEO’s reputation.
It’s also crucial to consider social media reviews. These are all indicators of whether a PEO can effectively handle your company’s demands.
Last Words
Letting a PEO handle your company’s HR, payroll, benefits, and risk management aspects is an excellent investment. PEOs also offer extensive training and development opportunities to their employees.
PEOs exist to relieve business owners of these responsibilities, allowing them to concentrate on increasing their company’s efficiency. A PEO lets you concentrate on what truly matters: developing, scaling, and expanding your business.
How We Can Help
Finding the right PEO may be critical to the growth and success of your company if you are a business owner. Engaging a PEO with a dedicated team of experts to handle your HR, payroll, benefits, and risk management requirements would be best.
BrightR allows you to collaborate with specialists to ensure you get the most out of your service. Contact us today to begin discussing a service plan for your company. We’ll save you time and other resources that you can use to focus on the wheels and cogs of your business.
