Why PEO’s Work
by Donna Steffy on Aug.25, 2010, under Uncategorized
To help reduce costly mistakes, an increasing numbers of companies are turning to a professional employer organization (PEO) to have better access to experienced HR consultants who can help with many time-consuming HR functions.
A Professional Employment Organization is a single source provider of HR outsourcing that will serve as a human resources department for client companies who want to utilize their services to reduce costs and raise efficiency.
PEO’s provide experienced human resources specialists who perform the duties of a staffing agency while also extending HR consulting and management of payroll services, risk management, employee benefits and other human resources functions.
The reason PEO’s work so well for small and mid-sized companies is because they assume the responsibilities and risks of employee maintenance.
When hiring a PEO, client companies enter into a practice referred to as co-employment. They take on the burdens of procuring and retaining employees as well as the tasks of assuring government compliance and the requirements of safety and workers compensation by becoming their employer of record for tax and insurance purposes.
A PEO supplies companies with administrative services, reduced liabilities, benefits outsourcing, employee benefits, employee handbook, employee/labor relations, employee leasing, HR consulting and HR management.
A full service PEO will provide the following:
- Payroll Services
- Recruitment services
- Risk Management
- Employee Benefits
- Human Resource Services
Hiring a PEO means a company can focus on their core business and cost-effectively outsource the expense and often complex employee relations that can strain a company’s budget as well as deflect from achieving their overall goals.
A professional employer organization will enable business owners to enter into a co-employment relationship knowing that the successful management of employees is in the experienced hands of human resources administrators whose number one priority is to save their client company time, money and effort.