A Professional Employer Organization (PEO) is defined mostly as outsourced human resources services for any business. To further examine the purpose of a PEO, it is a service which can potentially help any business that employees at least one employee. Most PEO services offer items such as HR compliance, benefits administration, payroll services, and even legal help for HR related issues. While every business that is larger than one person should have some sort of human resource department in place, a PEO is not for every business. Here are some examples of when a PEO is right for your company.
You Prefer to Use One Company for Benefits, Payroll, and HR
Some companies find it easiest to have one contact for human resource related issues, such as benefit administration, payroll, and employee management. If you are a business owner with this preference, you need a PEO. The benefit for you in using a PEO is that you have one place to go to answer all of your HR questions and deal with any of your HR needs.
Your Company Employees 10 or More Employees and Needs an Employee Manual
Once you employ one employee, it is a good idea to have an employee manual. However, once you employ ten or more employees, it is essential to have an employee manual. This will help employees, as well as management, understand expectations of the job and behavior in the workplace. It also helps create a standard of professionalism between all members of the business team.
You Are About to be or Are Involved in Employment Related Litigation
Any business owner who tells you they have never worried about letting an employee go and the associated risk of litigation has either had a stellar HR team within their business or has been lucky enough to never be sued by a prior employee. Most employers are aware that working with employees means opening the business up to human resource related litigation. If your company is about to fire an employee or has fired an employee and is worried about litigation, you need to work with a PEO, sooner rather than later. A PEO can help make sure you are following all necessary guidelines when letting employees go. If an issue arises the PEO can help provide the legal support necessary to deal with the issue in or out of the courtroom.
You Are a Small Company Getting Gouged by Insurance Benefit Pricing
Aside from the above employee management related issues, small businesses often work with PEOs to help mitigate health insurance costs. Small businesses are routinely complaining about the cost of insurance. Typically, insurance companies charge small businesses the highest premiums with little to no discounts because there is a small pool of employees to insure, making each individual a higher risk than if there were a larger pool of employees. PEOs can often help employers save money on the premiums as they are dealing with a larger pool of employees overall.
If you fit into any of these categories or want to learn more about working with a PEO, contact the experts at Fusion Employer Services at 866-FES-4978. Their team of professionals will be happy to answer your questions.