To be among the top employers in today’s work environment, you must be able to provide a competitive benefits package to your employees. The difficulty in this is that larger companies qualify for discounts and special pricing that is unavailable to smaller firms. Because of the unbalance this creates, it can be a challenge for smaller companies to recruit the best talent.
By partnering with a Professional Employer Organization (PEO), you can help balance the scales. When you work with a PEO, you come under their umbrella, and as far as benefits providers are concerned, you become part of a much larger organization. This reclassification of your company allows you access to the same benefits pricing as your larger competitors.
For over 30 years, NetPEO has been partnering with companies looking to grow their business. Give us a call or fill out our online contact form to discuss the needs of your organization and receive a free quote.
What Is a PEO?
A PEO is a company that partners with other businesses. The purpose of this partnership is to allow these other companies to benefit from their association with a larger organization as well as to outsource their Human Resources (HR) services. This arrangement is commonly known as “co-employment.” In co-employment, a PEO acts as a secondary employer to your staff.
A partnership with a PEO means your employees will have access to benefits typically reserved for those who work for businesses that employ thousands of workers. Additionally, all of your HR needs can be handled by a PEO. You will maintain all rights concerning the hiring, firing, and management of your staff while the PEO assists you with the day-to-day HR work.
The Benefits of a PEO Partnership
Beginning a partnership with a PEO can benefit your company in myriad ways. Some of the bonuses of entering into a relationship with a PEO include:
- Gaining access to better benefits packages that can help you draw in top talent
- Ensuring satisfaction among your workforce, resulting in decreased staff turnover
- Cutting the cost of the benefits you provide to your employees
Furthermore, by shifting your HR work over to a PEO, you will benefit from the resources of a fully trained and experienced HR department without having to pay additional staff. Additionally, with this partnership, you can be confident that your business is in compliance with all federal and state laws and regulations, including the Affordable Care Act (ACA).
The Roles of Both Parties in a Co-Employment Arrangement
Upon entering into an arrangement with a PEO company, the roles of both parties will be clearly laid out. A strong understanding of the rights and responsibilities that both parties possess is critical to diminishing any tension that may arise from partnering with a company with whom you do not have a long relationship.
When you enter into a partnership with a PEO, your role within your company will be unaffected. You will retain your role as the executive of your business and the primary employer of your workforce. Meanwhile, the PEO will work with you and your employees while following your lead in both the day-to-day and big-picture operations of your business.
The Role of the PEO
The primary function the PEO will serve in your partnership is as your company’s HR department. Some of the HR services they can provide you with include:
- Handling payroll
- Dealing with tax withholding
- Administration of benefits
- Performance evaluations
- Handling disputes
- Dealing with unemployment claims
While a PEO can handle all your HR services, you can also keep certain duties in-house if you so choose. You will have full control of your company, while your PEO partner will be able to provide you with the necessary support to help your company grow stronger.
How a PEO Differs From an HR Outsourcing Service
While there are similarities between a PEO and a Human Resources Outsourcing (HRO) service, there are also some key differences. Both a PEO and an HRO allow a company to outsource its HR department. However, while a PEO acts as a partner to your company, an HRO is simply an outside contractor.
While outsourcing your HR department will save you money over keeping it in-house, you will not be able to obtain access to better benefits packages by working with an HRO. The amount you can save by working with an HRO pales in comparison to the benefits savings available through a partnership with a PEO and also help you attract top talent to your company.
How a PEO in Maryland Can Help Your Business
When you partner with a PEO, they can take over all of the HR duties for your business, while allowing you access to benefits packages that can instantly turn your organization into one of the most highly desired companies in your field. Some of the things a PEO can do for your company include:
- Granting you access to better benefits packages
- Recruiting new talent
- Managing your payroll
- Ensuring compliance
- Handling all claims and disputes
- Improving your performance review system
Granting You Access to Better Benefits Packages
After entering into a partnership with a PEO, you will gain access to discounts on benefits, including health, dental, vision, and various other perks. In addition to helping you attract top talent in your industry, these benefits can increase employee loyalty and retention.
Recruiting New Talent
The ability to offer top-of-the-line benefits can help you attract new employees on a passive level. However, a PEO can also help you actively pursue top employees to your company through recruitment services, including:
- Talent scouting
Managing Your Payroll
A PEO can help simplify your payroll process, saving you time and money. A PEO will take all your payroll paperless by setting up direct deposit for your workers, distributing pay stubs online, and digitizing all W2s. This process helps minimize errors and cut costs while having the added benefit of being earth friendly.
When a PEO takes over the HR duties for your company, they will ensure that you are in compliance with the Affordable Care Act. When the ACA became law, most businesses were forced to dramatically alter the way they handled their employee’s benefits packages. Partnering with a PEO will give you the confidence that you meet the requirements of this law.
Handling All Claims and Disputes
A PEO can assist in settling any claims or disputes your company faces. Whether you are dealing with an unemployment claim, a workers’ comp claim, an allegation of discrimination, or any other potential dispute, a PEO can deal with the problem and help protect you from expensive consequences.
Furthermore, by providing your company with the resources of a highly trained and experienced HR department, a PEO can help minimize the chances of claims and disputes arising in the first place.
Improving Your Performance Review System
A PEO can help you create a performance review system that makes setting clear and defined goals easy for both employees and managers alike. By improving communication about the expectations your company has for its workers, you can be more confident that you are getting your employees’ best effort.
What Sets NetPEO Apart From Other Maryland PEOs
The founders of NetPEO have been working in the HRO and PEO industries for decades. Through this work, we have discovered what other companies do well and where improvements can be made. While the majority of our competitors possess the necessary technical knowledge to provide PEO services, they are often lacking when it comes to customer service.
At NetPEO, we combine our extensive technical knowledge with a strong focus on the needs of our partners. We listen to our partners to determine how we can deliver the best product possible to them. We ensure that the lines of communication remain open so we can continue to adapt how we work with you to meet the changing needs of your growing company.
Contact the team at NetPEO today to find out more about how we can help you grow your business and get a free quote.