PEOs and staffing companies both offer HR solutions for businesses, but the sorts of services they provide are very different. PEOs offer a wide range of HR outsourcing solutions to ease the burden of paperwork for small- to medium-sized businesses. Staffing companies, on the other hand, offer one option for businesses looking to add workers to their workforce.
If your business could benefit from the services of a PEO, call NetPEO today at (678) 376-1212. Our PEO brokers will schedule an initial needs analysis with you, so we can help you find the right PEO to work alongside your growing company.
Understanding the PEO-Business Relationship
When you partner with a PEO, you agree to have the PEO handle certain HR functions on behalf of your company. As part of this arrangement, you establish a co-employment agreement with the PEO. The co-employment agreement allows the PEO to have the legal authority to conduct the HR responsibilities on your behalf. The legal framework works by having your employees also be employees of the PEO.
Despite this legal framework, your employees still work directly for you. You maintain control of the daily functions of your employees, while the PEO manages the agreed-upon aspects of HR for you.
PEO companies offer services aimed at streamlining how your business handles its HR functions. Rather than hiring an HR team in-house or handling these functions yourself, the PEO’s team of HR professionals handles them. In this way, the services of a PEO save you time and money.
Managing Payroll and Benefits
Handling payroll and benefits administration can be a nightmare, especially for business owners without a background handling these complicated tasks. These tasks can become a drain on your time and energy as your company grows.
PEOs can take the headache out of the process. A PEO can help you track employee timesheets, process payroll, handle benefit claims, and even cut payroll checks on your behalf.
Compliance with Regulations
When handling HR matters, there are many federal, state, and local regulations that must be followed. Failure to follow these regulations, like the Affordable Care Act, can result in hefty penalties for your business.
When a PEO handles your HR functions, they are responsible for ensuring your continued compliance with any necessary regulations. You can rest easier knowing that your business is in the hands of HR professionals who will stay ahead of current and upcoming legislation so that your business doesn’t need to worry about these penalties.
One reason some people may confuse the work of a PEO and a staffing company is that a PEO can help you attract new talent. Your PEO partner can work with you throughout the hiring process, from job posting through employee on-boarding. You can even have your PEO partner handle the initial phone screenings for new employees, making sure that you speak with the best candidates for your open role.
PEOs offer tools to help you with HR functions, including recruiting regular employees. But what if you need employees on a temporary basis? Staffing companies may be a solution for your business.
When you work with a staffing company, you lease an employee from the staffing company to work at your business. While the worker is at your job site, they remain employees of the staffing company. The staffing company cuts the payroll checks for the worker, pays for any employee benefits, and will still be the employer to the worker when their assignment with you comes to an end.
Determining if You Need a PEO or a Staffing Company
If you only need workers to handle a short-term need, such as filling in for an employee on break under the Federal and Medical Leave Act (FMLA) or to help with an emergency project, a staffing company may be a good choice for your business.
However, if your business needs more help than just recruiting new employees, then you likely could benefit from partnering with a PEO. The PEO can help you find new, permanent employees, while also allowing you the opportunity to focus more time on operating your business.
If you want help in your search for a new PEO, contact NetPEO at (678) 376-1212. Our PEO brokers will work with you to find a partner with the experience and expertise your company needs to continue its growth. The call and our services are free for your business, so call today!