Many small business owners know they can offload difficult and time-consuming responsibilities such as benefit and payroll administration to a professional employer organization (PEO). Often, however, they aren’t aware of the other kinds of work that PEOs could do for them — work they probably wouldn’t do on their own if they didn’t have a PEO. When you have a PEO to take over these responsibilities for you, you can run a more professional business with greater employee productivity.
Taking care of payroll is one of the basic services that PEOs provide. Payroll isn’t the only compensation service they are good at, however. A PEO can also help you determine the right compensation to offer employees in line with their contributions, your company’s strategies, and culture.
A PEO can bring years of industry experience to the table to help you understand what kind of compensation plan would make the greatest sense in your industry, region, and business climate.
Planning the focus of your business
Your business needs a strategic plan to be able to find focus. Many PEOs specialize in helping their clients form vision and mission statements. They work with you and your management team to understand your product, objectives, and your relationship with your staff, to do this. They then work with different groups in your company to make sure all of them align over the same mission and culture.
PEOs perform people analytics for your company: they measure your employee retention, turnover and attrition rates, your payroll costs, and diversity, among other data points, and use these to help you compare how you are doing next to your competitors.
Having experts in HR to talk to in a knowledgeable way about your human capital management plan can help you think about the subject in a meaningful way.
Planning for future labor needs
Managing your employees is about more than just hiring them and making sure that they are paid. You also need a plan in place for what to do when someone quits or is promoted. A PEO is able to help you groom and train people on your team with future engagement in mind. This kind of training can help make sure that your business moves smoothly through changes.
Arranging coaching and training
Investing in training and coaching your employees on an ongoing basis can help make for a more productive workforce. However, professional coaching can be expensive when small businesses try to buy these services on their own. Going through a PEO, however, comes with special pricing. PEOs have access to discounts because they bring coaching companies a great deal of business.
PEOs can assess employee sentiment
It’s important for employers to keep a finger on the employees’ pulse in order to create a work environment that promotes productivity. PEOs are able to tap their experience to know what kinds of questions to ask employees in different industries. They prepare questionnaires, receive the most meaningful insights, and interpret these insights for the employer to make sure that they can make the changes needed.
PEOs can do more than just manage your payroll. They will bring the best professional human resources practices to your company to help you get the most out of your employees and save money while you do it.
Once you decide to use a PEO for your human resources needs, it can help to think about all that you might get out of the relationship. Knowing this could help make your business more competitive.