Businesses are always looking for ways to expand and improve themselves. In order to stay relevant, it is important to implement programs and systems that give your business a competitive edge over the rest. Engaging a Professional Employer Organisation (PEO) can do just that for your business. In short, a PEO acts as a co-employer for your company.
In doing so, it frees up a lot of your time and resources which you can then focus on other business prospects. For the uninitiated, a PEO allows businesses to outsource key aspects of their HR duties. This includes employee training, contracts, payroll, benefits and recruitment.
Here’s the burning question, could your business develop a competitive advantage by engaging a PEO?
Let’s take a look at some of the strongest advantages of engaging PEO Services.
1. Expand Employee Benefits Without Cost Increase
The competition of today’s talent market pushes employers to offer better employee benefits, so as to attract a larger pool of candidates to choose from.
Unique and appealing employee benefits are what makes a company stand out to candidates, which is why a PEO can help your company stand out. Partnering with a PEO can give you access to an array of benefits at a much more affordable cost.
Such benefits may include retirement plans and advanced healthcare options. Its no secret that in-house employee benefits are not cost-effective for most SMEs, and can quickly eat away at a business’s budget. However, in engaging a PEO, you will have access to employee benefits such as insurance at a much lower cost. This is because employees can be listed under a PEO’s federal number for payroll purposes.
A PEO helps you stand out from other competitors as it enables you to offer better employee benefits to employees, without a dramatic cost increase. Besides the added competitive edge over other businesses, this is also incredibly cost-effective in the long-run.
2. Reduce Employee Turnover Rate
Consistent and effective employee management is pertinent in maximising productivity and minimising risk. Of course, this also ensures that your employees get the best employee experience possible. A PEO is responsible for helping you manage your employees in the best way possible and this is important in reducing your company’s turnover rate. Employee turnover is costly for businesses and can often be disruptive to workflow consistency within the organisation.
Attracting and retaining talent is key to developing and maintaining a competitive edge over other businesses. A PEO assists you with this by offering more efficient services and competitive benefits to your employees.
A report done by the National Association of Professional Employer Organisations showed that engaging a PEO reduced the turnover rate of organisation to 10-14% below the industry average. Needless to say, this boosts your productivity and consistency, having a significant impact on your business and its’ competitive position within the industry.
A PEO reduces the employee turnover rate of an organisation by improving the employee experience that employees within an organisation are receiving. Satisfied employees decrease your turnover rate, which in turn ensures productivity and consistency in workflow.
All in all, this works in your favour towards giving your company a competitive edge over other businesses in the industry.
3. Eliminates Disorganisation
Payroll functions are accompanied by a plethora of necessary documentation and information. This includes contracts, payroll processing and tax reports. Ensuring all these documents are properly organised and also done accurately is a tedious and time-consuming process. When you hire a professional PEO, you are hiring a team of experienced HR Professionals.
As such, they have knowledge of the best HR Software platforms you can integrate into your workspace, so everything is well organised and highly secure under a single platform. This also ensures that no important documents get lost or are recorded incorrectly.
The elimination of this process from your day-to-day tasks means that plenty of your time and resources are freed up to focus on more core prospects of your business.
In eliminating disorganisation and ensuring all your documents are correctly done and in the right places, your employees now have plenty of time, energy and resources to focus on your business and its core goals and purposes. In short, engaging a PEO frees up time for you to focus on upgrading your business.
A PEO allows you to provide a better range of employee benefits and services. Furthermore, it ensures that all your important documents are accurately filed and secure. All of this work together to ensure that your business has more time and resources to focus on more important aspects of your business.
A PEO can greatly benefit your business, save you plenty of cost, time and resources and of course, ensure that your business remains a cut above the rest.