As a small business owner, you may be considering a Professional Employer Organization (PEO) for your HR services. You may wonder, “Is partnering with a PEO good for employees?”
You may be concerned with losing control or with the impact on employee morale. Usually, these concerns stem from not being familiar with the PEO arrangement. So, let’s examine those reservations.
The PEO arrangement defines employment responsibilities between the PEO and the business.
As the business owner, you do not lose control because the day-to-day operations continue to be your responsibility.
The PEO arrangement does not change your ability to hire, fire, establish rates of pay, work assignments or performance management. You are still responsible, but you have an experienced HR partner to collaborate with on these matters.
The PEO handles payment of wages, reporting and remitting payroll taxes, sponsoring certain employee benefit plans and provides HR support.
Think of the PEO as your back office. It is there to provide support and take time-consuming HR transactional duties off your plate.
Providing your employees with a great workplace is important to you. In a PEO arrangement, you have access to HR support, employee benefit plans and HR technology that you may not have had before.
Employee satisfaction increases when new benefit plans become available through the PEO.
Maybe a 401(k)-retirement plan, life insurance, or Flexible Spending Account are something an employee will appreciate. Increasing your benefit offerings increases your ability to attract and retain the best talent.
The PEO is a one-stop shop so employees can call to discuss benefit plans or other HR matters.
Health conditions can be personal. Using a PEO gives employees a place to call with confidential benefit plan questions.
Employees will enjoy the ease of using mobile or desktop technology for timekeeping, PTO tracking, and other features. And, with employee self-service, they can retrieve pay stubs, change personal information and review benefit elections; all available 24/7.
Transitioning to a PEO arrangement is very easy and employees experience little disruption. PEOs are sensitive to the onboarding process. They make it as simple as possible for you and your employees.
It is common for change to stir apprehension. In the end, using a PEO will enhance the employment experience. Employees appreciate access to new benefits and new technology. And, they appreciate you for providing a great place to work.
Spirit HR helps businesses manage their HR functions. This saves time, improves efficiency, and reduces risk. www.spirithr.com 405-951-5300.