If You are a Small Business Owner, Should You Use a PEO?
If You are a Small Business Owner, Should You Use a PEO?
According to some research, 98% of business owners said that they would recommend a PEO to a small business.
If you’re a small business owner, this can sound very appealing. But what are the other benefits of using a PEO?
Interested in growing your small business and hiring the best team? Keep reading to learn about why you may need a PEO.
Lower Benefit Costs
A global PEO service will allow you to save money on expenses like healthcare. They will provide more options than you would be able to as a small business, which can help attract more employees.
In 2019, employer health coverage cost is $7,188 for single care coverage. For a family, it was closer to $20,000. These costs can add up as you grow your business, and it can be challenging to grow with those costs.
However, a PEO can help you save so much of that money. The amount they charge will vary depending on the states that your employees live in since each state has specific laws. Different PEOs can charge different costs as well.
If your business has more than fifty people, you’ll need to offer health care insurance thanks to the Affordable Care Act. So if you’re planning on scaling your business, PEO will help you bundle your health insurance and save.
Avoid Hiring Internal Staff
A PEO will also ensure that you don’t need an entire internal human resources team. You can hire people who need to do non-administrative tasks because the PEO will handle all of the other functions.
You can spend time hiring subject matter experts to handle any major problem. However, a PEO can handle payroll that you wouldn’t want to trouble an internal team with.
Can Handle Various Services
A PEO can also offer different services, and you can tailor their solutions to fit your needs. When small business owners hear about the PEO, they only hear that they offer lower benefits and workers’ compensation coverage.
But they offer much more, like payroll services, managing employee handbooks, investigating employees, administering benefits, ensuring compliance, and managing organizational philosophy.
When you hire a new employee, they can also train that employee. They will be in charge of leaving the first impression on your new candidates, making them more likely to stay at the company.
Hire New Employees
When you want to bring new employees to your team, it can be difficult to identify and reach out to the best candidates. You’ll have to post job openings on the right job board, sort through hundreds of resumes, and know where to source candidates.
With the Great Resignation and a competitive candidate market, it can be challenging to find those candidates and recruit them to your company. Thankfully, the PEO already has a pipeline of candidates and has relationships with potential candidates.
Their experience helps them, screen applicants, to save you time. They will handle all stages of the recruiting process and then refer the best candidates to interview and choose.
However, keep in mind that if you remove yourself from the recruiting process as much as possible, you won’t have as much control over it. That’s why you should hire a PEO who will let you have the right balance. It’s also helpful to hire someone that you trust.
Better Hiring Processes
If you’re trying to expand your business globally, it can be challenging to have a hiring process in other countries. There will be different rules and strategies in foreign countries that you’ll need to follow.
Hiring in other countries can slow down your hiring processes as you learn all about the rules and procedures. Thankfully, a PEO will already know all of the rules and regulations, and they will save you time finding those candidates.
You’ll be able to work with a PEO who will also connect you with experts in recruiting for specific regions, which can help you manage your hiring process and find the best employees for your company.
Improve Employee Retention
Companies struggle to retain top talent, with employees jumping from job to job. Some employees leave after only a few months of working at a new company due to a bad onboarding process.
However, most PEO services are experts in human resources, and they can offer a great candidate and onboarding experience. When this happens, they’re more likely to help an employee feel comfortable at your company.
Since they’re experts, they will also know what to look for in the perfect candidate. When they can quickly identify the best candidate, you’re more likely to have a successful hire and have someone who will stay at your company for a long time.
Track Employee Performance
As a small business, you need to ensure that everyone is performing at their best, and the PEO will ensure that your team is running at the best possible level.
If you don’t have a lot of management experience, it can be difficult to manage your employees. However, a PEO can help you use employee performance tracking software to manage all of your employees.
Discover More About If a Small Business Owner Should Use a PEO
If you’re a small business owner, these are all the reasons that you should use a PEO to grow your business.
With a PEO helping you, you’ll have time to focus on running your business and being as successful as possible.
If you’re ready to start using PEO services, check out our website! We can help you grow your business.