A PEO, otherwise known as a Professional Employer Organization, is a company that provides other businesses with human resource and employee management services. In other words, a PEO is hired by a business to do the behind-the-scenes work that helps keep the company ticking.
What Kinds of Services Do PEOs Offer?
Professional Employer Organizations allow clients to purchase specific services a la carte or to get “the works,” which includes the entire package of services those companies need. The kinds of work a PEO might be hired to do for a business include the following:
- Handling of payroll
- Disbursement of employee benefits
- Assistance with workers’ compensation claims
- Employee liability and compliance issues
- Employee administration issues
In essence, a PEO can help employers by handling job recruitment and onboarding processes, developing training techniques for employees, dealing with paperwork and legal issues that may arise, and distributing benefits and payroll to the employees. One can think of a PEO as a firm that handles all of thedifficult paperwork so that employers can focus on the actual day-to-day running of the business.
Is NetPEO a Single PEO or a Network?
NetPEO is uniquely situated as a network of PEOs. This means that the services on offer at NetPEO can be more varied and specific than other, smaller organizations. NetPEO can offer solutions for virtually every facet of human resource issues or other outsourcing requirements by linking their clients to the most appropriate PEO in their network. In this way, NetPEO is an HR brokerage firm connecting clients with the best PEOs.
Instead of having to call numerous individual PEOs and comparing their offers, an employer can go through NetPEO, who will then connect that employer with an experienced PEO that can fit the employer’s specific need.
What are the Benefits of Outsourcing HR Services?
Outsourcing is a great way to minimize costs, thus saving employers money. Rather than needing to hire an entire HR department to deal with the associated employee management issues, businesses can look to a PEO for the exact solutions they need. Costs are therefore streamlined into the specific areas that need to be covered.
NetPEO goes one step farther in saving employers money, as it functions as a network and broker for the needed HR services. As the mantra goes, time is money. Employers who hire NetPEO can save valuable time by not having to haggle with prospective PEO services. Instead, NetPEO takes care of fact-finding about possible candidates and can get quotes from and negotiate with these candidates to find the best fit for the employer.
In addition to saving money, using a PEO can lead to happier employees. Rather than having to provide HR benefits like medical or dental insurance coverage out of an employer’s own pockets, PEOs often specialize in benefit packages. This means that there is often a greater pool of employee benefits available when using a PEO than there would be if the company handled benefits internally. Of course, NetPEO negotiates to find the right PEO for each of their clients, so employers can choose from various benefit packages.
Many of these benefits are of particular use to smaller businesses with anywhere from five to 100 employees, as those businesses often have a higher cost burden.
Understanding Co-Employment with a PEO
When dealing with a PEO, employers usually enter into a Client Service Agreement that details exactly how the PEO is agreeing to help the employer. This often means that the PEO and the employer become Co-Employers of the employees who make up the client’s business. But what does that mean, exactly?
Co-employment simply means that the PEO has agreed to carry certain employer-related burdens for the client, and therefore gains some employer rights. For example, the PEO may handle employment benefits and payroll services, incurring the risks involved in those areas. The PEO is therefore legally in a position of authority over those matters and is classified as a co-employer. The Client Service Agreement stipulates the specifics of such an arrangement, which can be negotiated by the client and the PEO and do not come into effect until signed.
Contact NetPEO Today
To enter into a Client Service Agreement with a PEO and start benefiting from outsourced HR and employment services, contact NetPEO today by calling 678-376-1212 or filling out the form to the right of this page. NetPEO’s unique network of organizations can ensure that you receive and pay for the exact services you need rather than spending much more money and precious time trying to handle your HR needs in-house.