You're likely familiar with the saying, "If it ain't broke, don't fix it." While this mindset can be beneficial in some areas of your business, it doesn't quite fit when it comes to HR processes and policies. The landscape of federal, state, and local regulations is constantly evolving. Sticking to your status quo, even if it once met legislative requirements, could leave you non-compliant and expose your business to potential risks.
In addition, technology advances quickly, and the systems that once seemed to streamline your operations might now hinder your efficiency or create unnecessary headaches for you and your team. This is where professional employer organizations (PEOs) can be of use. PEOs offer several advantages, particularly to small and medium-sized enterprises (SMEs) who may need more comprehensive in-house HR, payroll, compliance, and employee benefits management resources.
While the temptation to stick with what's familiar is understandable, embracing change, especially in HR, can significantly elevate your business's efficiency and compliance. Partnering with a PEO can transform your HR department from a purely administrative function to a strategic asset. By offloading the administrative burdens that come with HR, you and your team can refocus on core business strategies and growth initiatives.
The Benefits Of Partnering With A PEO
PEOs can often provide services at a lower cost than if you were to handle these functions in-house. By pooling together employees from multiple companies, PEOs achieve economies of scale, allowing them to negotiate better rates for health insurance, workers' compensation, and other benefits for your team. Often, these benefits are on par with Fortune 500-level companies and can assist with your recruitment and retention efforts. In addition, partnering with a PEO can help:
- Ensure compliance: PEOs employ professionals with expertise in HR, benefits, payroll, tax compliance, and risk management. Partnering with a PEO gives you access to these experts, who can be invaluable for making informed decisions about your workforce and business strategy, all while ensuring your compliance with federal and local regulations.
- Offer HR management and support: PEOs provide comprehensive HR services, including recruitment, onboarding, performance management, and employee termination. This support can relieve your internal team of these duties, allowing them to focus on other areas of your business.
- Boost employee performance and satisfaction: Employees often experience better HR support with PEOs as they can offer more timely resolution of issues and access to a broader range of benefits. This can lead to increased employee satisfaction and productivity.
- Provide flexibility for growth: As your business grows, a PEO can quickly scale its services to accommodate new employees, enter new markets, or adjust to changes in your business model. This flexibility is particularly beneficial for rapidly growing companies that need to focus on scaling operations without being bogged down by administrative tasks.
According to the National Associations of Professional Employer Organizations (NAPEO), businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business. While the temptation to "stay with what's familiar" may be strong, today's business landscape demands agility and a proactive approach to HR management.
By partnering with a PEO, you not only safeguard your business against compliance risks but also position it to thrive in an ever-changing market. This strategic move can be the difference between merely surviving and truly flourishing in your industry.
Partnering With A PEO
While partnering with a PEO might sound like a good decision, you might still be concerned about what that partnership actually means. When you start working with a PEO, you enter a co-employment agreement; this essentially allows the PEO to handle your payroll and benefits. However, you remain in complete control of your business, managing the day-to-day and making all the critical decisions related to your company.
While PEOs speed up and streamline the hiring process by finding qualified candidates for you to meet, at the end of the day, you choose who joins your team. Your relationship with a PEO is designed to be collaborative. The co-employment model used by PEOs does not diminish your authority or ability to manage your team. Instead, it provides a support structure, enhancing your capabilities to focus on other business areas.
Embrace Change With GMS
Getting started with a PEO can feel daunting, but GMS makes it easy. Today, business owners need to be compliant with a multitude of regulations in regard to:
- Payroll administration
- Tax management
- Workers' compensation claims
- Unemployment claims
- Health care coverage
- Retirement plans
Whether you're seeking support in one specific area or need comprehensive assistance across all these critical functions, GMS stands ready to elevate your business. Our team of experts is dedicated to making your operations smoother, ensuring your workplace is safer, and fortifying your company against the challenges of tomorrow. Don't let the complexity of HR and compliance slow you down.
Contact us today to discover how we can transform your business into a simpler, safer, and stronger entity. Let us take the burden off your shoulders so you can focus on what you do best—growing your business.