A Professional Employer Organisation (PEO) is a great HR solution for many businesses. PEOs act as a co-employer for your employees, and take care of all your HR needs so that you don’t have to worry about them.
This includes areas such as employee benefits, training, compliance, payroll and tax-related issues. Businesses can leverage on the knowledge and expertise of PEO vendors to improve their HR policies and processes.
Although PEOs have the same purpose and offer similar services, no two vendors are exactly the same. This article serves as a brief guide to help you choose the most suitable PEO for your business.
Research Various Price Points
In order to stay afloat, budgeting is important for any business. There is no fixed cost of a PEO, as this depends on a number of factors. First of all, it depends on the features that your business needs. Would it require all the features offered by a PEO, or only a select few?
A PEO may be priced as a fixed bundle, or based solely on the services you require. Another factor which affects the price point would be the number of employees within your business. Some PEOs charge per employee, or based on their total monthly payroll.
The price points of PEOs vary based on the vendor and services offered and as such, it is important to do your research based on your needs and budget in order to make the most cost-effective decision for your business.
Assess Needs and Features
The first thing you need to do is to assess the needs of your business. What do your employees need? What is lacking? Are there any areas in human resources that employees are struggling with, or are taking up more time than necessary? For example if payroll is far too time-consuming to process or if the business is struggling with legislative compliance, one should source out PEOs who can meet these needs.
If HR practices are dull, employees are dissatisfied or if there needs to be a more efficient onboarding process, source out a PEO who is reputable in this area. Reliable PEOs will alleviate all the necessary concerns and minimise your liability in all possible facets.
After identifying the needs of your business that a PEO can help resolve, do some research in order to source out the best PEO to remedy these issues.
Evaluate the PEO’s Technology
A PEO is meant to make day-to-day human resource tasks easier for your business. The technology made available by PEOs are often a major selling point to businesses around, as the advanced technology offered by many can help small businesses level the playing field with bigger ones.
The technology offered by a PEO can be used to quickly process payroll, apply for leaves or claims or speed up the onboarding process. At the same time, the system should be user-friendly and comprehensive.
Have a look at the technology offered by the PEO you are planning to engage and evaluate the ease of use, as well as the level of convenience it provides to your business.
A PEO can be a tremendously value-adding addition to your business. It allows you to outsource tasks that can be otherwise tedious and time-consuming so that you and your employees can focus on other core prospects of your business.
Remember to assess your needs and your budget so as to make the most suitable PEO choice possible for your business.