An impressive employee benefits package helps retain top talent. Unfortunately, offering such a wide range of benefits may be overwhelming, especially if other business areas need your time and attention. That is why you need a Professional Employer Organization (PEO).
A PEO comes into an agreement with you to manage employee-related liabilities and responsibilities, thus putting your back-of-house in order, improving your workforce, and offering you a competitive edge. But you need to work with a trusted Arkansas PEO broker such as NetPEO. The company has three decades of experience and the necessary resources to match and connect qualified PEOs with the businesses that need them.
What Is a PEO Broker?
A PEO broker works in harmony with businesses, organizations, and corporations to help manage employee benefits packages, payroll, and other Human Resources and administrative responsibilities. The entity represents and manages different PEOs for various businesses. In short, the firm helps businesses determine if they need a PEO and then matches them with the right PEO partner.
PEO brokers operate by focusing on the specific needs of their clients and helping them choose between going directly with carriers and payroll companies or bundling everything under a PEO. Besides, PEO brokers create a market among the companies offering PEO services to drive competition and maintain low prices for clients.
How an Arkansas PEO Differs from an HR Outsourcing Service
Both PEO and Outsourced HR services allow you to hand over HR work to professionals. However, a PEO arrangement is more powerful. Outsourced HR means engaging a third-party team that can do the work in your organization but cannot extend their benefits to your employees. Therefore, there is a huge limit on the costs an outsourced HR can achieve for your business.
With a PEO, your employees become part of their arrangement, meaning you can negotiate for benefit prices. These benefits make you a competitive employer in your industry.
How Do PEOs Relate to Co-Employment?
Business owners in Arkansas are hesitant to embrace PEO brokers since they are uncomfortable with co-employment. Co-employment allows the PEO to take over as an employer of record of all the employees in a company, thus administering services that an employer used to handle. For example, handling employee benefits packages and payroll administration.
But business owners should not have any concerns since this arrangement does not lower their status in the business in any way. You retain all the rights as the primary employer and have the final say on recruitment and firing decisions. In short, the co-employment arrangement gives clearly defined roles to both parties.
- The business owner is the executive and the primary employer. They make final decisions and dictate the direction of the company.
- The PEO handles the administrative tasks you approve and hand over to them. They are partners and can also resolve disputes.
Benefits of Working with an Arkansas PEO Company
A PEO broker matches a business with a PEO partner that best fits its unique needs. Whether you opt to outsource your whole human resource administration or choose the specific tasks you need at a given time, working with a PEO company comes with many benefits.
Access to Impressive Benefits
A PEO gives your employees live support all the time. They give businesses more and better choices of employee benefits to shop for and administer, which they could not get on their own. The reason being your team is part of a wider pool of employees across the country. You can support benefits such as vision, dental and medical benefits.
Others include retirement benefits with perks such as life insurance, flex spending, and tuition assistance. In short, the size of your company and your budget do not limit your choices.
Streamline Payroll Management
Handling bookkeeping, tax forms, employee payment, and proper reporting can be tedious and time-consuming for business owners. Outsourcing these tasks to a PEO is relieving and saves time. Additionally, the payroll is more streamlined and clear with easily accessible digital W2s, direct deposit, pay stubs, and on-time tax forms, which make your workforce happier.
As the workers get those documents, the business receives instant reports. Your workers also get an excellent service. If they need clarifications, there is always someone available to explain.
Improve Your HR Function
A PEO takes over the roles of the HR department, including hiring, creating employee manuals, and termination. Besides, the partner carries out performance assessments to help develop your employees. These improvements in your workforce give you a competitive edge.
Arkansas businesses must adhere to the federal, state, and local requirements such as the Affordable Care Act (ACA) and financial filing requirements. For instance, ACA has a new layer of requirements for health plans. These requirements are complex when a business does them on its own. An Arkansas PEO broker traverses the complexities and meets the deadline; thus, you have no worries of financial and legal penalties.
Claims such as unemployment, discrimination, wrongful termination, and workers’ compensation can be expensive to a business when they arise. An Arkansas PEO can manage these claims most cost-effectively and protect your organization from liability. They also provide high-functioning human resources and risk management services; thus, you can rest assured of fewer such claims.
What Kinds of Businesses Use PEOs in Arkansas?
PEOs work well with various industries, including aviation, aerospace, law, construction, real estate, energy, broadcasting, manufacturing, and finance. Besides, PEOs work with companies regardless of their scale. For instance:
- Small businesses employing ten or fewer people
- Medium businesses employing up to 100 people
- Large companies
- Not-for-profit organizations
Is It Safe to Use a PEO?
Hiring PEOs is safe, provided you are working with a reputable company. Working with a PEO broker helps you get the right PEO partner as they have a pool of PEOs, and they connect you with a reliable PEO partner who has experience in their industry.
Reach Out to NetPEO for a Free Consultation
At NetPEO, we have rich experience in the industry helping businesses meet the right PEO partners. We are happy to learn about your company and link you to a PEO who will help save money on HR, benefits, and compliance. Contact us for a free consultation.