Human resources is a core function of any business with employees, but it adds no value to your bottom line. In fact, with new challenges such as rising workers’ comp premiums and compliance issues, HR costs are rising. So, how can an Ohio PEO broker help?
When you outsource your HR workload to a Professional Employer Organization (PEO), you can take advantage of the many benefits of co-employment such as cost and time savings. Before you get there, however, there will be a long journey of comparing PEOs, costs, and agreements.
The wrong PEO can create unnecessary friction among your employees, not to mention the risk involved. This is where the right PEO broker comes in.
What Services Does an Ohio PEO Broker Provide?
PEO brokerage services are all about helping clients determine if they are ready for outsourcing HR services, then matching them with the right PEO service providers. That’s exactly what we do at NetPEO.
As PEO brokers in Ohio, our role is to understand your unique HR, payroll, and compliance needs. We do that by conducting an initial needs analysis, which gives us the information we need to create a shortlist of the best PEOs from our network in Ohio and all across the US.
When you have chosen one, we also get involved in the transition to ensure that integration goes smoothly. Unlike other brokers, NetPEO is the only company that hand-selects the right provider for you, even if all you want is a selection of HR services on an à la carte basis.
Working with a PEO in Ohio
Whether you are a small, medium, or large Ohio company, PEO services could be the perfect option when it comes to reducing HR workload and costs.
Both wholesome and partial outsourcing is available to you, with services including payroll, workers’ comp, employee benefits, employee training, and insurance policies.
Should You Outsource HR Functions?
Outsourcing HR services could be especially important for more than 70% of small business owners who prefer to delegate HR duties. This is where untrained staff, such as managers and accountants, take up HR roles rather than professional HR personnel.
Despite spending billions, small businesses still face big risks when untrained personnel handles HR. Lags in compliance, administration, and payroll can cause a lot of trouble, not to mention that bundling additional tasks on employees keeps them from focusing on growth and innovation.
By the time you’re hiring the 10th person, you should have seriously considered either hiring dedicated HR staff or outsourcing employee management to a PEO. Ohio businesses will benefit from the workforce solutions offered by a highly connected and experienced PEO.
Benefits of PEOs
Compared to in-house HR departments, PEOs bring many benefits, including:
- Access to better and affordable employee benefits. Your employees become part of a much larger pool that has access to master health plans, better 401k plans, child care, and more. As a collective, these perks cost you less money.
- Reduced payroll, accounting, and administration costs. The PEO pays employees from its own accounts and manages all the paperwork.
- Compliance with federal, state, and local rules and regulations. Co-employment is legally recognized, so it lets you share compliance responsibility with labor laws, and withholding tax, among others.
- Hiring and firing, depending on your agreement. They take away the hassle of hiring and will cost you less on recruiting costs.
- Employee training. Whether it’s creating employee handbooks or onboarding new hires, PEO can take care of continuous employee training and management.
A PEO frees you from tedious administrative duties so that you can focus on growing your business. Your employees will also benefit from a more defined, streamlined, and efficient HR system.
What About PEO Administration Fees?
PEO administration fees are a top concern among Ohio businesses, right up there with control over employees. When you sign a contract with a PEO, you should have a clear cost structure and an outline of all services offered.
PEO companies charge administration fees in two ways. The first and best for small businesses is as a percentage of the payroll. This rate can range from 3% to 10% of your total payroll costs, depending on the services provided.
The second option is a flat-rate fee per employee, which will be $900 to $1,500 per employee per year. Since there are many more factors involved, you can calculate the cost and ROI of PEOs or work with our team to find out the most affordable option for you.
Is Your Business Ready for a PEO?
Figuring out whether your business is ready for co-employment is our first responsibility. Is it worthwhile to outsource your HR? Will you cede control to the PEO? How will your employees react to co-employment?
Chances are that your current HR situation is much worse. Here are a few signs that indicate that it might be time to outsource your HR services.
- Your management has become reactive rather than proactive. If you’re always fighting compliance deadlines and keeping up with processes, you’re overwhelmed.
- You are unable to attract top-tier employees. If your competitors can use attractive payment packages and perks to attract skilled and experienced employees, it’s time to leverage the power of co-employment to remain competitive.
- You have trouble managing your workforce. Poor performance, indiscipline, and lack of engagement are all signs of HR issues getting out of hand.
- You are too busy to focus on “big-picture” strategy and management. If payroll and HR are taking up too much of your time and energy, it’s time to get help.
These and many other warning signs could be telling you to outsource the complexities and uncertainties of administering your HR. With the right PEO, you get to solve your HR challenges and enjoy cost and time savings as you focus on your business, customers, and products.
Let Us Help You Find an Ohio PEO
At NetPEO, our specialty lies in matching business with the best PEO service providers. We eliminate the risks of hiring PEOs and ensure that your business runs smoothly throughout the transition. Every employee and PEO company we work with is vetted and verified.
NetPEO is the choice of Ohio business people and executives, and we are excited to help you too. Contact us online or call us for a free consultation and let us help you implement new and better HR management strategies today.