If you’re a small business owner looking for a competitive advantage, you may be considering your HR outsourcing options. Partnering with a professional employer organization (PEO) is an excellent way to minimize the stress of critical HR functions without breaking the bank.
However, you may not be sure how the PEO arrangement will impact aspects of your business. When it comes to collective bargaining agreements, your decision to simplify how your HR functions are performed will have no impact. PEO arrangements do very little to affect the day-to-day relationship between you and your employees.
When you’re ready to find the HR outsourcing solutions that your business needs, contact NetPEO. By calling (678) 376-1212 or completing the forms on this site, you’ll be able to set up your free initial needs analysis with an experienced PEO broker.
How a PEO Arrangement Works
When you’ve found the organization that you want to partner with, you sign a formal contract. This contract, also called a co-employment agreement or client-service agreement, establishes a type of professional relationship known as co-employment.
The co-employment arrangement means that the PEO has certain legal rights to handle personal information for HR processing purposes. The PEO will be recognized as the employer of record for your employees and will execute the HR functions you outsourced to them.
Your Relationship with Your Employees
While the PEO arrangement is called co-employment, it doesn’t mean that your employees suddenly have new bosses to answer to. Your employees continue to report to their normal worksite. You remain in charge of setting their wages, evaluating their performance, and any other normal managerial responsibility you had prior to your new PEO arrangement.
Likewise, any collective bargaining agreement your employees enter will not be affected by your decision to partner with a PEO. The PEO will merely abide by any relevant state or federal laws. Your employees’ decision to unionize or abstain from unionizing will be left out of the PEO’s hands.
What a PEO Does for You and Your Employees
The specific HR functions a PEO assists with will depend on the needs of your business. When you call (678) 376-1212 for your initial needs analysis, we will help you determine what sort of services will benefit your business the most. Whether it’s a full HR suite of solutions or just assistance with a few key functions, NetPEO can help.
PEOs often help small businesses by processing payroll and managing benefits administration. Whether it’s through access to improved software or handling every administrative aspect, there is a service that’s right for your business.
Improved Benefits Offering
Considering that improving your benefits is a great method to retain employees, your new PEO arrangement can help. As the employer of record for multiple businesses, a PEO counts all the employees that work directly for the organization and the employees of its clients under the same umbrella. This arrangement means that your PEO partner has access to benefits that are typically unaffordable for most small businesses.
The types of benefits you might be able to offer your employees after signing a co-employment agreement include:
- Better health insurance plans (though you may arrange to keep your current plan if it is part of the collective bargaining agreement)
- 401(k) and other retirement planning options
- Education reimbursement funds
- Life insurance
- Adoption assistance
- Job counseling
Regulatory and Risk Management
Depending on your specific PEO arrangement, you may have a wide range of options to lower your company’s risks. Your PEO may help lower your risks through:
- Improved employee administration (e.g., creating handbook to reduce harassment claims)
- Managing employer liability (i.e., ensuring your business HR functions are carried out in accordance with state and federal laws)
- Worker safety consultancy
Should there be any incidents which require the handling of a workers’ compensation claim, your PEO will manage the case on your behalf.
Getting the HR Outsourcing Solutions That You Need with NetPEO
With the National Association of Professional Employer Organizations (NAPEO) reporting that there are more than 900 PEOs working with businesses across the country today, finding the right one can be difficult. You likely want to find one that both understands the complex laws governing your business’s industry and respects aspects of your company culture like your collective bargaining agreement.
As a PEO brokerage, NetPEO does the searching so you don’t have to do it yourself. After your initial needs analysis, our brokers compile a list from our trusted network of service providers. With our help, you’re empowered to find the right PEO for your company.
When you’re ready to see what the PEO brokers at NetPEO can do to help your company, call us today at (678) 376-1212.