Are you contemplating a Professional Employer Organization for your business? Maybe you’re unsure of how a PEO can improve your business efficiency. Or, maybe you’re unfamiliar with how employee benefits are impacted by working with a PEO. Understand how you can leverage the many advantages of a PEO for your business, especially with administering your employee benefits.
How Does a PEO Work?
The right PEO will manage most aspects of your human resources. This enables you to focus on managing and growing your team and your company. This includes things like HR compliance, handbooks, workplace disputes, payroll, employee benefits, and more. A partnership with the right PEO can help you offload HR tasks and responsibilities such as:
- Onboarding and hiring
- Benefits selection and administration
- Retirement plan administration
- Unemployment claims administration
- Payroll and tax liability and compliance
- Federal & state HR and regulatory compliance
Many small and mid-sized businesses (SMBs) rely on a PEO to leverage big-company benefits. This saves time and effort normally associated with finding, implementing, and managing those plans.
How Does a PEO Benefit Employees?
Because most SMBs don’t have the resources and benefit plans that larger companies do, they’re often limited in benefits provided. With a PEO partnership, those SMB employees can get the same type of perks offered by Fortune 500 companies, including:
- High-quality, affordable health coverage
- Long-term and short-term disability
- Supplemental life
- Health savings accounts (HSA)
- Flex spending accounts (FSA)
- Employee assistance programs
- Group discounts and perks through retailers and theme parks
Additional Benefits of Using a PEO for Benefits Administration
Using a Professional Employer Organization (PEO) for benefits administration provides several benefits for businesses. Some of the advantages of using a PEO for benefits administration:
Access to a Wide Range of Benefits
PEOs typically offer access to a range of employee benefits, including health, dental, and vision insurance, retirement plans, and more. This can help small and medium-sized businesses compete with larger companies in terms of benefits offerings.
Partnering with a PEO can provide access to benefits at lower costs than they could negotiate on their own. PEOs have economies of scale, pooling the employees of multiple businesses, which can lead to lower premiums and administrative fees.
Compliance with Regulations
PEOs are typically well-versed in state and federal regulations governing employee benefits, such as the Affordable Care Act (ACA). By partnering with a PEO, businesses can ensure that they are compliant with these regulations, reducing the risk of penalties.
Benefits administration can be a time-consuming process, especially for small businesses with limited resources. By outsourcing benefits administration to a PEO, businesses can save time and focus on their core operations.
Benefits Expertise and Support
PEOs typically have experienced benefits professionals on staff who can provide guidance and support to businesses and their employees. This can include assistance with enrollment, claims processing, and employee communications.
A PEO for benefits administration can help SMB business owners, startup founders, and nonprofit leaders offer competitive benefits packages to their employees, while reducing costs, ensuring compliance with regulations, and saving time.
Partner with the Right PEO to Attract Better Talent
Partnering with the right PEO will help you attract better talent. With the more comprehensive benefits offered through a PEO, you have a significant edge when trying to attract top talent in the job market. It shows candidates that you’re invested in the well-being of your employees and that you value them on a more personal level. This leads to increased interest from qualified candidates, most of whom are looking for a competitive benefits package, in addition to their salary.
When you provide your team members with higher-quality health options that include wellness incentives, employees can more easily get healthy and stay healthy. In turn, you’ll tend to see increased productivity and fewer sick days.
Partnering with a PEO can help with employee retention. Now when employees have a question or issue related to their benefits, they have a designated person within the PEO to help get them on the right track. Employees now feel like they’re better supported, which helps improve their overall job satisfaction. That better job satisfaction leads to an improved culture which equates to less turnover and better overall employee retention. A recent study by NAPEO showed that companies working with a PEO experience 10% to 14% less turnover than their counterparts that are not working with a PEO.
Partnering with a PEO can help you and your employees from a benefits perspective. Beyond simply offering better plans or helping control costs, below are some less-obvious ways a good PEO partner can make life better for you and your team:
- Online benefit enrollment
- Support for employees when they have benefit questions
- Plan design and employer contribution assistance
- Reconciliation and payment of carrier invoices
- Annual renewal and plan selection input/assistance
- Flexibility to change options based on market adjustments or unique company needs
Why Your Company Needs Human Capital Concepts
When you’re ready to make the change and work with a PEO, be sure to consider Human Capital Concepts. Our expert team of professionals will serve as an extension of your company, providing all the aforementioned benefits and support.
More importantly, we’re so confident that our partnership will be beneficial for you that we’re willing to back it up with a guarantee. In simplest terms, if you determine anytime in the first 90 days of working together that we aren’t the best fit for your group, you can cancel our agreement and receive back 50% of any service fees paid to us up to that point.
Transform how your business handles and manages human resources and benefits administration with a PEO partnership. And let Human Capital Concepts be your guide to start leveraging all the advantages for you and your team.