If you feel overwhelmed as a small business owner and want to outsource the HR function of your company, a PEO can manage HR with an efficient and cost-effective solution. The average small business owner will spend around 70% of their time on administrative work, leaving barely 30% on actually growing their business. With a PEO, you can spend more time on what matters while benefiting from a dependable partner who handles your HR.
The right PEO will take a holistic approach to HR outsourcing, with the ability to cover a wide variety of functions from payroll to benefits. Establishing a relationship with a PEO can bring unmatched value and expertise to your HR, going beyond simply managing it.
With a reliable PEO behind your company, you can ultimately benefit from:
- A wide range of services that address every HR need
- Minimized costs
- Reduced risk of non-compliance
- Increased productivity
- General ease of mind knowing your HR is in good hands
While a good PEO can be an invaluable asset to your business, the key is finding the one that’s the right fit. There are many PEOs out there, but you can identify the ideal partner to meet your HR needs by asking them the following questions.
Learn more about what you should expect from your outsourced HR partner
1. What exactly will I be paying for?
When outsourcing HR to a PEO, you should know exactly where your money is going. A PEO you can trust will maintain transparency and develop a custom solution based on your specific needs. Like other worthwhile services, there isn’t a one-size-fits-all HR outsourcing solution, and your PEO should understand that.
2. What kind of service can I expect?
Your PEO should also be easy to contact and communicate with whenever you have any questions or concerns you want to address. Find out what kind of service they provide. Will a human answer the phone, or will you be connecting with a machine? Can you contact your PEO via email or even text when necessary? If a PEO seems like they’ll be elusive in any way if you need to reach out to them, this could be a red flag.
3. What kind of software do you provide?
Good PEOs also have access to reliable HR software solutions that allow for comprehensive management. Find out what that software includes and how you can use it. In addition to using the software, PEOs should also offer their clients self-service portals to monitor their HR. This resource provides valuable insight into payroll, access to benefits, and more.
4. Do you provide training for my employees?
PEOs shouldn’t only work to manage a small business’s HR, but they should also help that business stand firmly on its own feet through comprehensive employee training programs. Some PEOs will offer corporate leadership coaching to facilitate effective communication and management skills.
5. What employee benefits plans are available?
Explore the kinds of employee benefits plans the PEO offers. It can be challenging to find the right package. Still, your PEO should be able to put together a comprehensive plan that includes multiple PPO and HMO health plans from reputable carriers, group life insurance policies, domestic partner coverage, 401(k) plans, COBRA administration, and much more.
6. Am I liable for taxes and regulatory compliance?
It’s also often difficult for small businesses to navigate tax liability and regulatory compliance. Find out if the PEO covers federal and state employer tax liability and filings. Regulatory compliance is also vital, seeing as the cost of non-compliance is around 2.71 times higher than that of compliance. A PEO you can count on will plan employee relations strategies to help maintain compliance to avoid mounting costs and potentially serious repercussions.
7. What’s their reputation?
The right PEO will also have a good reputation in the industry. You can ask about the company’s reputation and the kinds of clients they’ve worked with in the past. At the same time, you can do your own research and find out what people are saying about the PEO online. Look for testimonials from past customers and try to pinpoint clientele with needs that are similar to yours. Based on how well the PEO has performed for others, you can better determine whether they’re worth your trust and investment.
Asking all of these questions can help you find the ideal PEO to help meet all of your HR needs. With a PEO by your side, you’ll be able to work with experienced and knowledgeable HR experts that provide an exceptional level of value you won’t find elsewhere.
