In our previous article we looked at a guide into Professional Employment Organizations. In this article we want to look at what are some of the benefits of using PEOs.
Business owners and managers know that every dollar, and frankly every cent, counts when it comes to running a business. As your business grows, your HR demands can pile up.
What if you had specialized HR experts readily available to help you fine-tune and economize some of the most challenging aspects of your business? How about having a trusted set of advisors to guide your company on employment issues? And how would providing your employees with access to big-business benefits improve your recruiting and retention efforts?
All of these factors have the potential to transform your business, but are they really possible? They are when you outsource your heaviest HR burdens to a professional employer organization (PEO).
So, where are the savings?
PEOs do more than just save time and headaches by handling many employer responsibilities. They can also save you money by helping you avoid costly pitfalls – like hiring the wrong candidate for a key role – and helping to steer you clear of HR-related compliance issues that could result in hefty fines.
Here are seven key areas where outsourcing your HR challenges to a PEO can help you save money:
- Employee Benefits
A primary goal of the PEO relationship is to provide your employees with access to cost-effective, comprehensive benefits without the administrative and regulatory burdens that can be so overwhelming and costly.
As a co-employer, the PEO is able to offer a wide variety of benefits to your employees through PEO-sponsored benefit plans, such as medical, dental and vision coverage, a healthcare flexible spending account, and life and disability benefits.
As the plan sponsor, the PEO will handle the related administrative tasks, such as negotiating with carriers and enrolling employees.
Working with a PEO can decrease your payroll-processing and related accounting costs. PEOs can also conveniently automate the payroll process and handle your Employers Monthly Payroll Deductions (so1) and Employers Annual Return (so2).
- HR compliance
Employment law is complex and ever-changing. Not keeping up with the countless HR laws, regulations, and rules that apply to your business can cost you big time.
Are you up to speed on the following laws and regulations? If not, a PEO can provide guidance from seasoned HR professionals and help you avoid compliance mishaps.
- Are you aware of the paid sick time policies in effect?
- Are you aware of current regulations for hiring and firing practices?
Regardless of whether you have an in-house HR person (or staff), teaming up with a PEO can give your business a significant advantage. You’ll have access to trusted advisors who work hand-in-hand with you to keep you aware of regulatory updates and guide your business in making the appropriate adjustments.
- Workers’ compensation
Insurance premiums and claims management – both of these components make workers’ comp costly and time-consuming. As a co-employer, a PEO can provide workers’ compensation coverage to your employees through its own workers’ compensation insurance program, as well as handle the compliance, audits, paperwork, and certifications associated with running these programs.
Think you can minimize legal expenses and PR fallout from lawsuits? A single lawsuit can devastate your business, so keeping your employer liabilities in check is critical. A PEO shares liability associated with certain employment-related claims, including wrongful termination.
For example, a top-tier PEO likely has equal employment opportunity specialists who are well-versed in the intricacies of discrimination laws. With a PEO as a resource, you can tap into the experience of multiple experts to mitigate a potentially costly settlement.
Their HR knowledge can help make sure release agreements are in compliance with the law. It’s important to note, however, that such advice is not a substitute for legal counsel. Instead, it serves as an added layer of defense – that second set of eyes to warn about potential trouble.
These days, recruiting moves at light speed. Positions open up quickly and you almost always need an equally fast turnaround to find a qualified and capable candidate. The problem is, you probably don’t have the time and bandwidth to focus on the essentials of solid recruiting.
When you consider the time and money spent placing job ads, interviewing candidates, conducting background checks and more, hiring the wrong person can turn into a costly error. A thorough PEO should offer additional services, such as recruitment assistance, and be able to provide you with access to experienced recruiters who can size up your company’s employment needs.
A good recruiter is usually adept at reading people for particular jobs. They know how to analyze tone of voice during phone interviews, can assess a candidate’s attitude and evaluate emotional intelligence to determine a candidate’s capacity to perform well in a real-world job setting.
Looking for PEOs in Jamaica? Contact us at 1-876-971-7632 or email us at email@example.com
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