People are your most important asset and taking care of them is vital to the health of your business.
Outsourcing to a PEO enables you to proactively manage your business. Business owners like to think they’re proactive and not reactive yet our consultants find that a majority of businesses are not leveraging the right resources.
- Streamlining paperwork
- Reducing time spent on NON-core responsibilities
- Avoiding litigious situations
- Optimizing opportunities
Here are 10 Outsourcing Solutions a PEO handles
- 1. Time
Outsourcing removes non-productive tasks that take away time and resources so you can focus on bottom line activities such as strategic planning, marketing, and customer service.
Could you make more money if you more had time to work your business? Time = money in business.
- 2. Cash Flow
Outsourcing improves your cash flow by integrating most of your employee cost-centers into a single cost factor as a percentage of payroll – or better known as per $100 of payroll. Begin paying workers’ compensation on a pay-as-you-go basis.
Your cash flows in “real-time” right along with your business income.
- 3. Workers’ Compensation
Outsourcing makes buying and maintaining work comp easier than ever. No more BIG down payments. No more year-end premium audits. Because your work comp is built into your Outsourcing service fee, you only pay for the insurance you need as it’s utilized. The bottom line is PEO’s have BIG buying power that can save you money by using their insurance policies and sometimes their own insurance agencies.
- 4. Employee Benefits
Outsourcing means you’ll have “turnkey” benefit plans in place for your employees. Imagine instantly adding a 401(k) plan, a Section 125, Group Dental, Life, as well as unique business benefits to your business without spending a fortune. And best of all, the Outsourcing company manages the programs, payroll deductions, and benefit records- making employee benefits easier than ever to provide and manage.
- 5. Government Compliance
Outsourcing simplifies all the rules and regulations associated with employing people. A PEO can assist you in complying with all federal, state, and local laws and statutes. Outsourcing provides you with legally required employee forms and paperwork. They even maintain and store your employee files.
Outsourcing with a national PEO also allows you to employ in all 50 states without the filing and compliance issues. There are numerous quality PEO’s that already established in states you may not be in and now all you need to do is add your employees.
- 6. Human Resources
Outsourcing gives you access to your own personal HR Department, assisting with employee handbooks, hour and wage analysis, job descriptions, record management, supervisory training and conflict resolution.
A PEO provides a reliable source to get your employee-related questions answered by HR professionals.
- 7. Operating Leverage
Outsourcing creates operating leverage for businesses by creating a fixed cost for employing people. Rather than having to increase your internal investment in human capital, technology, equipment to keep up with external growth, the PEO arrangement provides a predictable outsourced mechanism that allows you to increase profits at a greater rate than internal costs.
- 8. Employee Turnover
Outsourcing reduces turnover be establishing better systems, policies and benefit packages. Turnover can cost your business literally thousands of dollars a year in lost production and employee training and re-training. A good PEO will help you create loyal employees and assist you in keeping them motivated.
Many PEO’s include employee development training in their offerings by providing you with this critical yet often “un-budgeted” benefit.
- 9. Risk Management
Outsourcing can really benefit businesses with work comp experience modifiers above 1.00. They can offer sound advice for improving workplace safety and preventing claims from occurring. Once again, the PEO will proactively manage your comp claims and work with you to reduce claim costs and investigate potential fraud.
Outsourcing solves each of these problems by becoming a co-employer with you.
- 10. Payroll & Taxes
Outsourcing payroll to a PEO means they take care of the paychecks, W-2’s, direct deposits and payroll tax deposits. They assume your tax liabilities and responsibilities as the IRS employer of record. This co-employment agreement and payroll administration makes everything possible for the employer.