As your company grows, you are constantly looking for ways to improve that growth and increase profits. One way to do that is to look for outsourcing opportunities. HR can be one such area where you could see a positive return on your investment.
There are many ways outsourcing HR can help your company grow. Outsourcing to a Professional Employer Organization (PEO) can also increase your profits. The average company that uses a PEO sees a 27.2% ROI. You cannot get that kind of return anywhere other than with a PEO. What follows is a short list of some ways a PEO can provide such a high return for your business.
Learn more about what you should expect from your outsourced HR partner
1. Better Employee Retention
Attracting and retaining top talent in your industry can be challenging. Many small businesses find it difficult to compete with larger organizations offering higher pay and better benefits.
With a PEO, you can overcome those challenges. A PEO can give you access to their master benefits plan, allowing you the opportunity to offer your employees better benefits at costs you can afford. Your PEO frees up your internal HR team by taking over this burden, giving them time and energy to focus on your core business needs and build an attractive culture.
2. Better Recruiting and Talent Acquisition
The hiring process takes a great deal of time away from an HR employee’s day. From drafting a job description to reviewing candidates to interviews and eventual hire, internal recruiting can quickly become a full-time job.
With the right PEO, they can help shoulder some of this burden. Your PEO may be able to help you create job descriptions that are exciting and help attract better candidates. The PEO can also help you develop a stellar onboarding process that gives new hires a wonderful first impression of your business.
3. Benefits Administration
Offering competitive benefits at prices you can afford is a challenge. Small businesses not only have to find providers who will offer reasonable rates but then they have to figure out how to administer their benefits package.
With a PEO, they handle all of this for you. The best part of letting your PEO handle your benefits administration is that they will have HR experts on staff to help make sure your business administers your benefits in accordance with federal, state, and local employment laws. This helps to keep your business out of hot water and avoid costly and embarrassing fines.
4. Creation of SOPs and Workplace Standards
Many small businesses simply wing it. They don’t create any policies or standards for their company or individual employees. While this may work for a short time, it often ends in confusing job descriptions, employees not really sure of what they are supposed to be doing, and compliance issues.
When you partner with a PEO, however, these concerns go away. Your PEO will help you create a standard operating procedure (SOP) to make sure that your company has clear and defined goals and processes. When the structure is clear, employees know exactly what’s expected of them and how to do their job. Ambiguity simply leads to confusion and employee dissatisfaction.
5. Cost Control
Small businesses often find it difficult to control their costs. Owners are not intentionally letting costs spiral out of control, but they just have so many items to focus on and worry about, costs often take a back seat.
With a PEO, your company can get cost control support. Your PEO can help you control your HR costs in many ways. One of the most efficient is through healthcare options. Your PEO has negotiated at scale healthcare premiums. When you join a PEO, you gain access to their full benefits package, which includes their healthcare plans. This allows you the chance to offer your employees Fortune 500 benefits at Fortune 500 prices. Controlling your healthcare costs is one of the best ways to manage your overhead and reduce your expenses while still providing competitive benefits.
6. Growth Opportunities by Focusing on Operations
Many small businesses think of operations as a speed bump or a stymie to growth potential. But operations can help organize a company and its employees, so everyone knows their role and how they fit into the bigger organizational picture.
A PEO will help you focus on operations, putting in place organizational structure to help your business grow faster. Without a focus on operations, your company could fall to a lack of structure, leaving employees unhappy and unmotivated.
A Trusted PEO may be the Solution You Need
As your company grows, you continue to seek out options for increasing your growth potential. One of the best ways to do that is with a trusted PEO.
Your PEO can provide you with HR guidance and support, helping you attract and retain top talent in your industry while remaining compliant with employment laws. Work with a PEO today to see these growth benefits, along with countless others.
