Human Resources Administration–How PEOs Can Help Your Bottom Line.
PEOs Let You Get Back to the Business of Growing Your Company
HR Administration – How PEO can help your bottom line.
With the current financial climate, small and mid size companies should consider teaming with a PEO firm to administer their HR Administration tasks cost efficiently.
Suppose you are the CEO of a small or medium size firm. All things being equal, your business should be humming along right now. However, it seems that more and more of your attention is diverted to HR Administration details such as benefits administration, making payroll, or insurance, rather than marketing your business. If you are in this situation, a PEO is perhaps one option that’s worth investigating.
It works this way, PEO are co-employment companies. Professional Employer Organizations are third party firms who specializes in HR Administration such as financial reports, personnel administration and benefits administration. The PEO become the employer of record for your employees with it’s own tax ID number. The PEO handles all the HR Administrative duties while you, as the client company owner, continues to direct the employees’ workaday activities. PEOs are paid by way of a percentage of the payroll between 3 to 15% of the total payroll.
PEOs work with many companies in this manner so they can get the best rates for insurance and benefits packages because of the economy of scale. Here are some other benefits in working with a PEO:
• Your firm can share employment related liabilities through this co-employment arrangement.
• Workers' Compensation is no longer a risk to your company since the PEO is the employer on record.
• Take on the administrative burden of payroll processing, HR support and benefits administration.
• PEOs gain access to Fortune 500 style benefits for your company at large-group savings.
• Human Resource expertise with professionals who have extensive HR administration best practice, regulatory and compliance knowledge.
• In some case, the PEOs can do the recruiting, hiring and firing of employees on your behalf.
To find out more about Professional Employer Organizations you should check out AgilityHR.com.
About the Author
Kai Yee, is a writer, educator and a businessman living and working in Washington, DC. He has taught and lectured at in George Washington University and George Mason University. Currently, he is working as a consultant for Astra HR, an HR Administration firm.
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