Professional employer organizations (PEOs) like the ones in NetPEO’s nationwide network offer a variety of HR and accounting services to companies across the United States. In fact, recent data from the National Association of Professional Employer Organizations shows that more than 3.7 million employees work for businesses that are partnered with PEOs. While companies of all sizes and in all industries can benefit from using a PEO, new and small businesses like startups are uniquely poised to take advantage of the savings that PEOs provide.
NetPEO is a PEO brokerage service that helps client businesses find the right PEO for their needs. For startup owners, sifting through the more than 900 PEOs in the nation may be too time-consuming and difficult. Startup owners tend to have a very hands-on approach to their company and cannot afford to spend valuable time interviewing each individual PEO option.
NetPEO helps by profiling the needs of your startup and matching you to a few PEOs in our network, which has more than 200 years of combined industry experience. Then, when the list of possible PEOs has been shrunk to a manageable size, the startup owner can select the PEO that most suits the needs and culture of their business.
HR Services Startups Can Use
There is a wide variety of services and HR solutions that PEOs can provide, and many are crucial to the success of startups and small businesses. Additionally, the PEOs in our network offer both wholesale HR outsourcing and services on an a la carte basis. In other words, a company can choose to outsource their entire HR and accounting departments to a PEO or select a handful of services for the PEO to perform in order to ease the burden on an existing, in-house HR and accounting staff.
New business owners and startup entrepreneurs often do not have the time required to handle all of their payroll needs. From dealing with mandatory withholdings and wage garnishments to managing union dues and keeping track of PTO, the paperwork can mount to dizzying heights. PEOs are able to accommodate business owners by handling all of their payroll administration needs.
Employee Benefits Packages
One of the most vital ways that a PEO can help startups is by providing and managing high-level employee benefits packages. This is accomplished via the co-employment relationship. By becoming a co-employer of all of its client companies’ employees, a PEO has an employee pool much larger than that of any single business. This allows PEOs to have a greater bargaining advantage when acquiring comprehensive benefits packages as well as to lower the cost of those benefits by spreading it across more employees. In other words, PEOs can provide your startup’s employees with better benefits and cut down on costly employee turnover rates while attracting the best talent.
Risk Management and Reduction
For startups, a vital element of long-term success is managing and reducing the company’s risk profile. By having a lower risk profile, your startup can attract investors, customers, and top-tier employees while lowering the likelihood of avoidable costs like lawsuits or workers’ compensation issues. PEOs can help startups lower their overall risk by developing anti-harassment policies, ensuring legal compliance with regulations like the Affordable Care Act, creating better recruitment strategies, and highlighting workplace safety concerns.
Company Culture Creation
Part of the vitality of a startup lies in its emphasis on company culture. PEOs can help these businesses by working with the owner to develop employee handbooks, improve the employee recruitment process, manage employee performances, train administrators, and more. With a strong core company culture, your startup may be able to have success for years to come and implement its brand on the marketplace.
The Importance of PEOs to Startups
PEOs in NetPEO’s nationwide network have worked with companies that have more than 100 employees and companies with as few as five employees. We understand the needs of small and large businesses, and we are positioned to assist startups as they strive for long-term success. Why can startups benefit from using a PEO? Some of the following reasons are the most important.
PEOs Save Owners Money
Startups often have very limited budgets, especially in the first few years of operation. Having a full-time, in-house HR and accounting staff can be prohibitively expensive. However, the cost of a PEO is often far lower than the cost of a full-time staff.
PEOs Save Owners Time
Of course, some owners may decide to save money by taking on all of the HR and accounting services by themselves. Not only does this place an undue burden on the owner by forcing them to familiarize themselves with countless laws and HR processes, but it is not feasible. These services require constant time and attention that can be better spent by business owners handling the day-to-day work of their company. By using a PEO, business owners can save themselves valuable time and energy and put that time to better use.
PEOs Save Owners Stress
Partnering with a PEO is a good way to ensure that your services are being handled by professionals. NetPEO was founded by industry veterans and our networked organizations have more than 200 years of combined HR and accounting experience. By trusting our PEOs with your HR needs, you can rest assured that your company is in good hands.
Find Your PEO Today
To start the process of finding a PEO for your startup’s needs, simply fill out the form on NetPEO’s contact page or call us at 678-376-1212. We offer a FREE initial consultation to get to know your business and its specific HR outsourcing requirements.