I Won’t Be in Charge Anymore
Understandably, when faced with the prospect of dividing up responsibilities and management of his or her company, a business owner might feel a stab of fear at handing over the reins to an outside party. It’s important to reframe the concept of co-employment as a positive thing. After all, the purpose of the agreement between you and the Professional Employer Organization is to create a splitting of tasks aligned with the strengths of each party. At the end of the day, the PEO works for you.
It’s Too Expensive for Me
Rather than looking at a PEO as a line-item cost to your business, think instead of all the ways it can save money. A PEO can hire and retain stellar employees (saving hiring and retention costs long-term), prevent costly payroll or tax errors, and maintain employee morale with the discovery of top-notch benefits or training programs. The importance of these PEO benefits is huge. Happier employees equal less turnover, which means more money in your pocket. In addition to the financial savings, consider the emotional savings of off-loading stressful or overwhelming business management to a professional organization. The PEO will keep you apprised of matters, freeing you up to the areas of company management at which you excel.
My Employees Will Become Disgruntled
On the contrary, employees can benefit greatly from the work of a PEO. For example, a PEO’s employees can handle routine administrative tasks that your employees might have no interest in. PEO payroll assistance is often considered one of the most valuable assets provided in terms of freeing up your employees’ time. Additionally, Professional Employer Organization insurance and retirement perks are often rated on the same level as those from Fortune 500 companies. You’ll be able to maintain the same company culture you’ve cultivated, while the PEO smooths over any rough spots.
There Aren’t Any PEO Benefits That I Can’t Arrange by Myself
While you are so busy arranging these departments by yourself, what opportunities are falling by the wayside? The time and effort taken up in managing complex or administrative tasks can really add up for a business owner. Though you are probably capable of handling some situations on your own, a PEO can assist you in streamlining and managing the more complicated or less interesting parts of running a business. This frees you up to explore options for growth and development within and without your company.
My Company Is the Wrong Size for a PEO
According to the National Association of Professional Employer Organizations, the client target market for PEOs is generally companies containing between 10 and 99 employees. However, the average number of employees in PEO client companies is only 22.5, which means that there is no set company size. Whatever the size of your company, there is a PEO for you. Research well-reviewed, detail-oriented PEOs to start your search and narrow it down to find the PEO that suits your business’s needs.
Myths: Busted
It is important when making business decisions to carefully consider all sides of an opportunity, both positive and negative. Though it may be daunting to hand over management of some operations, in the long run, PEO benefits can not only save your business time and money but also help you dodge pitfalls in terms of liability and compliance.
Video Source: https://www.einsteinhr.com/what-is-peo/
