Why partner with a Professional Employer Organization (PEO)?
There are many good reasons exist to work with a Professional Employer Organization. Some businesses have specific needs or issues that can be solved through a PEO relationship — such as Workers’ Compensation, Regulatory Compliance or Benefits offerings. Other businesses just don’t have the time or expertise to handle the complex HR issues being faced.
We have compiled a list of key reasons why businesses partner with a PEO, and how they benefit from a PEO relationship:
Professional Employer Organizations relieve the stress and burden of HR administration.
As businesses grow, so do the frequency and complexity of non-revenue HR issues that are draining on time and hurt the bottom line. A PEO can handle the time-intensive and repetitive HR tasks that distract focus from the core competency of a business. Knowing that your HR issues are handled timely and correctly is a great relief for both business owners and their employees.
A PEO’s service-and-technology infrastructure creates efficiencies and streamlines HR tasks.
A reputable PEO will have a long-established and up-to-date service model executed by experienced staff. As a PEO client, you can leverage a PEO’s service and technology infrastructure, creating efficiencies and improving the employment experience for your employees. A PEO’s staff includes experienced payroll professionals, ensuring your staff will be paid accurately and on time. And experienced HR staff members are ready to handle any issues that arise as businesses grow and challenges arise. With a PEO your business will be ready to handle any and all HR issues, effectively and efficiently.
PEO’s share employer risk, reducing your exposure and creating stability for your organization.
Many clients turn to a PEO for relief from employer risk and burden. The effect of a single claim can send premiums skyrocketing for products such as workers’ compensation and health benefits. Fines and penalties for non-compliance also create exposure from the ever-growing list of regulatory agencies. These unforeseen expenses can create financial stress for a business along with uncertainty in the future. The PEO relationship truly is a partnership, with both the client and the PEO sharing HR responsibilities and employment risk. As a PEO client, you have an advocate and teammate working in your best interests to resolve issues.
A PEO’s size provides clients better benefits and HR services available typically to only much-larger corporations.
One challenge employers with less than 500 employees face is referred to as “the cost- of-compliance disadvantage.” Large employers with more than 500 employees pay a significantly lower cost per employee for benefits, along with HR tasks and maintaining regulatory compliance. A PEO closes this gap for employers with fewer than 500 employees, allowing them to competitively offer HR services and benefits offerings that would typically be cost-effective only for large employers. PEOs also help with items such as employee handbooks, dispute resolution and best practices to ensure clients are aware of and meet regulatory requirements.
PEOs value their clients as partners and offer scalable solutions to grow with your business.
As your business grows, so will your HR needs. The top talent you look to add and retain will expect more each year in the hyper-competitive employment marketplace. Selecting a Professional Employer Organization with the capacity to grow with your organization is key to continued growth. A seasoned PEO will stay ahead of the curve with employee expectations, keeping your employees happy and on task.
Learn More about Trion Solutions
Trion Solutions is one of the country’s largest and most respected Professional Employer Organizations. To learn how a PEO relationship can fit your business, contact us today.
The COVID-19 pandemic has exposed worst-case scenarios beyond comprehension for individuals, business, non-profit organizations, schools and universities, government units and the sports and entertainment industry.
We have seen the tidal wave of emotions surge from shock to denial to disbelief to frustration to fear. As we have tried to stay safe and well, we now seek the beacon of light and optimism as we look forward to the “new normal.”
From a crisis-management standpoint, what happens when COVID-19 is over?
It is surely more complex but really no different than after any other crisis situation that requires an answer to a fundamentally important four-word question: “What have we learned?”
In my book, THE CRISIS COUNSELOR: A Step-by-Step Guide to Managing a Business Crisis, I describe a seven-step process to effectively manage a crisis situation. The first step is to “identify the vulnerabilities.” Just as we recognize a new normal is on the horizon, we also see how a pandemic has now been added to our vulnerabilities like others in recent years – terrorism, opioid abuse, cybersecurity and a new threshold of discrimination and harassment.
Other than Bill Gates and a few Hollywood movies, no one would have imagined a global pandemic that would have so swiftly and severely led to the deaths of 120,000+ people around the world and abruptly slammed the brakes on economic prosperity and financial security. COVID-19 has shown us that business and commerce are far more fragile and vulnerable than ever imagined – where once thriving and prosperous businesses and industries can be crippled in the matter of days and weeks.
I mentioned in THE CRISIS COUNSELOR that nearly every crisis is preceded by a warning sign – and history has shown that COVID-19 was no different. The signs from previous pandemics warned us: The Bubonic Plague (1346-53), the Third Cholera Pandemic (1852-60), Flu Pandemic (1889-90), Sixth Cholera Pandemic (1910-11), Spanish Flu Pandemic (1918-20), Flu Pandemic (1968) and HIV-AIDs Pandemic (at its peak, 2005-12). We may not have realized that COVID-19 would be so far-reaching or what kind of virus it would be, but it wasn’t inconceivable that such a pandemic could occur again in the world and United States.
But what about Small Business?
The COVID-19 pandemic revealed the inherent fragility of small businesses with vulnerabilities that included the granddaddy of them all – the fact they could be forced to stop production and serving customers at a moment’s notice. The blackout of 2003 that pulled the plug of technology and communication to many Northeast and Midwest states, now looks in hindsight like a mere inconvenience compared with the guillotine-like devastation Small Business has endured with COVID-19. What can be learned? Start with adding the “new vulnerabilities” to the “new normal.”
Small Business now knows it has a workforce with which it must communicate, inform, empathize, assist and encourage. It can face fast-changing and complex regulations and compliance issues to manage. And, it may need to rely more than ever on outside advisors and companies in the areas of HR, I.T., accounting and law, so it can stay focused on its core business. Small Business also has learned now how easy it is to be overwhelmed in a crisis and how there are often more questions than answers but that you still need to control the messaging – failing to do so is at its own peril, leaving the narrative for others to express.
As we see the proverbial light at the end of the tunnel, let us take a look forward by learning about what is (or soon will be) behind us. Where is my business most vulnerable to a crisis? For what do I wish we were better prepared? In hindsight now, what do I wish we would have done better or different? In what areas could we have used the help and which functions should we partner with someone for the future? What do I most want our employees, customers and other stakeholders to know about our business and how I feel about them?
What else have we learned? COVID-19 reinforced to us that nothing is more important than the health and well-being of our families, friends, employees and business colleagues. We also learned the five tenets of communication: honesty, information, empathy/compassion, opportunities for input and questions, and a call to action (i.e., what we can do going forward).
From a crisis standpoint, COVID-19 is an ultimate test, but it won’t be the only test. I wrote in my book that “all businesses have one thing in common – all have vulnerabilities, and all can and will experience crises.” The strong survive in business and the strongest are prepared to move decisively and confidently in a crisis by being prepared heading into the crisis.
For those small businesses that survive COVID-19, a rebirth and renaissance can occur that will turn them into a more effective and robust business by examining and re-examining their vulnerabilities, how to prevent them from turning into a crisis, and what can be done to prepare now for the next time the legs are cut out from under the business.
Let’s make sure that we answer, “What have we learned?” with not simply a historical perspective of the past, but the sense of empowerment and action going forward.
For Small Business, the experience gained has provided a new meaning behind the mantra, “We can. We will. We must.”
The Top 5 Reasons to Partner with a Professional Employer Organization (PEO)
It’s no secret that business is changing. Changes in technology, a shifting economic outlook and a rapidly-evolving regulatory environment all call upon today’s businesses to be flexible, responsive and always ready to adapt to new realities. For an increasing number of businesses, working with a Professional Employer Organization (PEO), is becoming an indispensable way of making sure that their companies are ready for any eventuality – and well positioned to take advantage of any opportunity.
Here are a few reasons why a PEO can be your company’s best friend:
A PEO can let your business focus on what it does best.
HR functions aren’t a profit center for your company. So why should they be the recipient of a large measure of its time, attention, and resources? Repetitive, daily HR tasks consume resources your company could use in advancing its core-business functions and driving revenue growth. A PEO lets your company maintain its focus on tasks that matter—strategy, product development, sales and marketing, and other endeavors that contribute to profitability and institutional strength.
A PEO can help you strategically build your workforce and grow your business.
The bottom-line objective of HR is to engage and motivate your workforce. Employees with access to professional HR services and expanded benefit offerings are more effective, efficient and loyal. An experienced PEO partner helps you attract and retain top talent, and that can be a powerful competitive advantage. Research shows that companies who partner with a PEO grow at an average of 7-9% faster than their counterparts who handle the burden of HR on their own.
A PEO can help you safeguard your business.
Risk management is one of the most difficult, and most inevitable, issues a business can face. Working with a PEO means they don’t have to face it alone. A PEO partner will share risks and responsibilities, relieving the client from some considerable employer risks and complex reporting requirements (such as payroll tax reporting). A PEO enables Workers’ Compensation risks to be amortized across a large labor pool, minimizing the adverse effects of any single claim. And a well-run PEO will also guide your company through increasingly complex employer compliance requirements and, as a responsible party, will be an advocate for your company in resolving HR issues.
A PEO can help you contain costs.
By leveraging large employee pools when purchasing products in large quantities, PEOs can pass savings onto their clients. Benefit offerings and Worker’s Compensation insurance, for example, are two products where PEOs are well positioned to provide companies with significant—and sometimes critical—savings. The size of the PEOs employee pool and its bulk buying power also enable access to a broader range of benefit offerings, and help companies maximize their benefits investment while holding costs in check.
A PEO can help you attract and retain top talent.
In an era of nearly full employment, competition for top-performing talent is fierce in nearly every industry—and that raises employee expectations when it comes to HR and benefits offerings. A top PEO always stays ahead of these trends, calibrates services and benefits offerings to meet evolving expectations, and enables client companies to deliver the HR experience that premium talent demands. And a PEO helps “level the playing field” between small- to mid-sized companies and major corporations by providing a similar suite of benefits that enables them to attract and retain top talent.
In the coming weeks, we will explore each of these five key PEO advantages in greater detail, illustrating the considerable benefits to be achieved through a well-considered partnership with a reputable PEO. As one of the top Professional Employer Organizations in the nation, Trion Solutions is committed to creating and highlighting advantages for our client partners, and we have seen firsthand the big difference a PEO can make in the fortunes of growing businesses.