Working with a Professional Employer Organization (PEO) is one of the best decisions a business owner can make. Not only do PEO companies help you save money on your overall business costs, they are essential in giving you time back into your day to focus on more important aspects of your company.
There are several myths about our industry that make it hard to understand what it is really like to work with a PEO company. Read through the top misconceptions below to learn the truth.
1. “I Will Lose Control Of My Business.”
When you choose to partner with a PEO company, you enter into what is called a co-employment relationship. This means the PEO becomes the employer of record for your employees for workers compensation and taxes. You still remain in complete control of all the day-to-day operations of your business and oversight of your employees.
All the PEO company does is take over handling much of the time-consuming tasks that take you away from finding new ways to grow your business, such as payroll processing, tax filings, and benefits administration. You are still responsible for hiring/firing employees, and maintaining a safe work environment, and keeping track of actual hours worked.
The good news is, if you need help with other aspects of your business, the PEO company can offer consultation; for instance advice on proper disciplinary actions and workplace safety.
2. “My Employees Aren’t Going To Like This Change.”
There are several reasons why your employees will embrace the fact you have decided to partner with a PEO company, including the fact this gives them access to several benefits they may not otherwise get. For example, not all small to mid-sized businesses have access to affordable health coverage. However, by partnering with a PEO company, you may have access to our group policy.
3. “My Existing HR Staff Will Be Terminated.”
Choosing to work with a PEO company does not mean you are replacing any member of your existing team, especially if you have an existing human resources department. Working with a PEO gives your HR team a group of experts to consult with in making decisions. It also opens up their time to focus on more strategic goals to better your organization as a whole.
4. “I Already Have A Payroll Company.”
Many people think a PEO company is the same as a payroll company. It is true we process your payroll. We also do much more.
A typical payroll company does not offer other business services a PEO company does, including benefits administration and risk management.
5. “My Business Is Too Small To Work With A PEO Company.”
There is no company too big or too small to benefit from working with a PEO company. In fact, smaller companies benefit the most from this business model as it gives them access to essential resources to make it easier to compete with larger scale companies. Plus, working with a professional employer organization is a key way to keep your overall labor and payroll costs down as you grow your business.
6. “Working With A PEO Company Is Too Expensive.”
Working with a PEO company can be one of the most affordable business decisions you ever make. Not only do we have the ability to help lower your workers’ comp premium to a competitive rate, it provides you with a simple pay-as-you-go option for your premium. Premiums are based on payroll amount, not a fixed dollar amount.
In addition to helping your business save money, we also have several programs that pass the savings on to your employees, including major health plans, 401(k), supplemental benefits, and so on.
As a small- to mid-sized business owner, these plans would be quite costly if you were to offer them on your own. However, by partnering with a PEO company, you can offer all these incredible benefits to your employees without worrying about it breaking the bank.