A PEO is a Professional Employer Organization. It works to provide outsourced solutions to your HR needs so that you, the business owner, do not have to spend time on those issues. This is a way to free up business owners to focus on the important aspects of their companies while ensuring that crucial services like employee benefit management and payroll allocation are handled by seasoned professionals. Essentially, a PEO is an HR department for hire, and it can perform several different services.
The Services of a PEO
At NetPEO, we work as a PEO brokerage. The PEOs in our network offer a wide variety of services both a la carte and as aspects of a wholly outsourced division. Some of the services that our PEOs offer include the following:
- Employee Administration: such as designing sexual harassment policies, recruitment, and performance strategies.
- Liability Management: ensuring that your company is in compliance with all federal and state regulations.
- Employee Benefit Management: offering a larger resource pool, and happier employees.
- Payroll Management: to avoid the cost of a permanent accounting department.
- Workers’ Compensation: working on methods to reduce claims, increase worker safety, and lower your costs.
Most businesses find partnership with a PEO to be a time-saving and money-saving asset. Cheaper than having a full-time HR department on-site, hiring a PEO to perform these services for your company can free you up to focus on the actual day-to-day workings of your business.
The Co-Employment Arrangement
In order for a PEO to begin working with your business and providing solutions, you and the PEO first enter into a co-employment arrangement. This arrangement is merely a way for the PEO to have the authority it needs to handle employee administration procedures, such as handling payroll or distributing benefits.
Under the co-employment arrangement, your employees still remain your employees. However, they become “employees” under the authority of the PEO for specific services. While this may seem strange, there is no need to panic. The specifics of the co-employment relationship will be spelled out by you and the PEO in a co-employment agreement ahead of time, and there are many benefits to this arrangement.
At NetPEO, we find that PEOs can be of use to all businesses. This is especially true of companies that have between five and 100 employees. Using a PEO saves money and time, gives employees access to a larger pool of benefits, and allows these crucial services to be performed by seasoned experts.
Using a PEO in Conjunction With an Existing HR Department
Rather than using a PEO for all of their HR needs, some businesses prefer to retain their own HR department while selecting certain services to be performed by a PEO. At NetPEO, we have access to one of the largest networks of PEOs in the nation and allow our clients to choose a la carte services. In many cases, having a PEO perform the work of an entire department is the more cost-effective solution, but each business is unique.
If you decide to select only some services to be performed by a PEO, this still may have a significantly positive effect on your company. With a PEO taking some of the burden off of your HR department, they will be free to focus on important aspects of your company like:
- Training employees
- Retaining important clients
- Developing employee satisfaction
Both uses of a PEO are valid, and only you can make the final decision on how you would like to outsource your HR needs. As a PEO brokerage service, NetPEO can help you make that decision through our consultation process.
Speak With NetPEO Today to Begin Your PEO Search
In addition to boasting one of the largest nationwide networks of PEOs, NetPEO also has the highest client retention rate and highest client satisfaction rates in the industry! We start by consulting with you and assessing your business’ specific needs. Then, we match you with a handful of PEOs from our network and you can choose which one you would like to start a working relationship with.
Plus, NetPEO will check in with you regularly throughout the duration of your co-employment arrangement with our PEO to ensure that you are continually satisfied with the services you receive.
You can start the process today, and learn about which HR outsourcing solution fits your company’s needs. Call us at (678) 376-1212 or fill out the form on our contact page. Your wallet, and your employees, will thank you.