If you have a small business, you might be asking yourself the simple but important question, “why PEO?”
In case you didn’t already know, PEO is an acronym that stands for Professional Employer Organization. There are many benefits of PEOs, especially when it comes to small businesses. They perform a multitude of useful functions that can really put you ahead of the competition.
Keep reading to learn about 7 top PEO benefits that will help your small business.
1. You Can Save on Employee Benefits
When it comes to small business PEO, it really pays for itself when you factor in all the savings and convenience it comes with. For example, with a PEO working for you, employees become part of a large whole that includes co-employees within the PEO.
The importance of this is that the PEO is able to offer your employees the same money-saving health rates and coverage that is usually only available to large corporations. Thus, even though your employees are working for your small business, you can take advantage of employee benefits you wouldn’t normally have access to without a PEO.
2. You Can Protect Yourself Against Risk
Because many small businesses handle their payroll on their own, more than 33 percent of small businesses are hit with fines from the IRS every year. These fines are just for payroll and, unfortunately, there are many other aspects of running a business that are prone to mistakes and possibly money-wasting fines.
It can get complicated complying with every law, rule, and regulation, which is why a PEO can help you with compliances related to employment, protecting you from incurring fines. Not only do PEOs know the necessary paperwork backward and forward, but in many cases, they can even file the paperwork on your behalf.
That way, you can stop worrying about becoming a compliance expert and can start focusing on the aspects of your business that you’re knowledgeable about.
3. You Can Easily Get Health and Wellness Programs
More and more businesses are becoming aware of the benefits that come from investing in their employees’ health and wellness. It can keep the people in your employees healthy and happy and it can save you money on healthcare costs in the long run.
However, these programs can often be complicated for a small business to manage without help. Fortunately, a PEO can provide your business with health and wellness support so that you don’t have to worry so much about it.
That way, your HR department will be able to focus its time and effort on other matters of importance.
4. You Can Streamline Employee Communication
Without a PEO, an employee must contact HR if they have questions about their healthcare and benefits. This is yet another task that in-house managers will have to balance.
However, when you have a PEO on your side, your employees can take their questions directly to the PEO.
Nowadays, many PEOs implement online HR platforms that can be easily accessed by your employees at any time and from any location. They’ll be thankful for always being in the loop.
Instructional YouTube videos are always helpful too.
5. The Cost of Hiring Can Be Reduced
Yet another way that working with a PEO can save you money involves the hiring process. From many interviews to piles and piles of paperwork and other chores that come with hiring employees, the whole undertaking can be a real hassle.
Instead of slogging through a process that can consume as much money as it does time, you can rely on a PEO to help streamline the operation. Not only can a PEO take on much of the hiring-related paperwork, but they also give you convenient human resources support
With this in mind, your small business can feel free to put on hold any hires that might have to do these jobs from within. Plus, when you do take measures to hire an HR representative, for example, the PEO can take many time-consuming chores off that person’s plate so they can fully focus on making your business the very best it can be.
6. You Can Get The Best Retirement Plans
Your employees want to rest easy knowing that they’ll be taken care of in the future after they’ve retired. When you’re on the market for a PEO, you should find out whether or not they can provide you with access to a retirement savings plan that has 401(k) plans.
That way, your employees will be able to delay remuneration for their eventual retirement. At the same time, they can take advantage of employer matching and other benefits.
By now, you shouldn’t be surprised to know that your PEO will also help manage your retirement plans so that compliance testing and other regulatory requirements are followed to the T. If that isn’t enough, a PEO will take the time to educate your employees on their plans and how best to achieve their retirement goals.
7. You’ll Have More Time for Other Matters
The simple fact is that running a business is never easy and can be taxing on even the most energetic business-owner. Not only does running a business take a lot of time, but it also requires many tasks to be done in a short timeframe.
With a PEO on your side, the clock can look more like a friend and less like an enemy. Since you can rely on your PEO to handle many chores related to the hiring process, HR, and more, you’ll have your hands free to tackle other important matters.
Time is money and, with so much more time available to you, you and your business will be that much richer.
Are You Ready to Take Advantage of These PEO Benefits?
Now that you know about the 7 top PEO benefits that will help your small business, you can begin to revolutionize how things get done.
Through insurance and consulting services, GIGA solutions can support your PEO in order to maximize growth and streamline your business. If you have any questions about our high-quality services, PEO insurance, or something else, feel free to contact our knowledgeable experts. We’re always happy to help.