This is how many people have built their empires. Delegating duties and outsourcing experts to handle various aspects of your business allows you to put all your resources into building your business.
This is where professional employer organizations come into play. By partnering with such organizations, you can outsource human resources support and payroll among other services. Don’t worry about your employees because they’ll come in as a partner, which means you’ll still have control over your employees.
Tons of benefits await your growing business if you hire a PEO. In fact, according to NAPEO’s survey, 98 percent of clients said they’d have no problem recommending a PEO to an upcoming business.
What’s more, in its latest white paper, the organization listed some interesting findings. For example, businesses that seek PEO partnership are bound to grow faster, up to 14 percent more compared to those that don’t. Furthermore, they also become more profitable.
Types of Services PEOs Offer
The type of services a PEO can offer will vary from one PEO to another. Take a look at the best Massachusetts PEO options at digital exits.
This means that you may not find a certain service in a particular PEO as expected. Also, keep in mind PEO will not enter long-term contracts.
If you intend on terminating an existing contract, more often than not you’ll be required to present a 30-day notice in writing. Sometimes, you may also have to pay cancellation fees. Therefore, when seeking a PEO, make sure you go through their terms and conditions before signing a contract top avoid surprises.
Nevertheless, the PEO you choose must provide four basic services. They include:
- Risk management
- Benefits
- Payroll
- Human resources
Some companies will provide IT services, especially technology touching on human resource management.
The Co-employment Model
According to NAPEO, the national organization that shelters PEOs and looks after their interests, there’re no less than 900 PEOs in the U.S. alone. However, only 250 of these are registered NAPEO members. These companies occupy 90 percent of the entire market and they use the co-employment model in their operations.
This means your employees will appear on the PEOs roster for compliance and tax purposes. Nevertheless, as mentioned earlier, you still maintain control of your business and employees. As such, you can hire and dismiss anyone as you wish. In addition, you can assign responsibilities to any employee.
The only job of the PEO is to ensure compliance, handle any HR issues as directed by you and also take care of the legal aspect of your business. If your employees don’t appear on the PEOs books, then you won’t realize the full benefits associated with outsourcing.
In no way will the PEO interfere with the running of your business including influencing your decisions.
If you’re interested in growing your business without the hassle of multitasking, then a PEO is the best way to go. With it, you’ll have time to focus on your business by developing strategies to expand and reach new markets. In addition, you’ll experience efficiencies in your business.
This is an article provided by our partners network. It might not necessarily reflect the views or opinions of our editorial team and management.
Contributed content
Founder Dinis Guarda
IntelligentHQ Your New Business Network.
IntelligentHQ is a Business network and an expert source for finance, capital markets and intelligence for thousands of global business professionals, startups, and companies.
We exist at the point of intersection between technology, social media, finance and innovation.
IntelligentHQ leverages innovation and scale of social digital technology, analytics, news, and distribution to create an unparalleled, full digital medium and social business networks spectrum.
IntelligentHQ is working hard, to become a trusted, and indispensable source of business news and analytics, within financial services and its associated supply chains and ecosystems
