When has your startup or business ever considered using a Professional Employer Organization (PEO)? They specialize in providing benefits and human resource assistance to many different clients. Because they serve multiple companies, they can leverage their client base to improve healthcare and retirement opportunities. These are external human resources departments that enroll employees of the client's company on their staff and then lease them to the company. PEOs typically charge between 1% and 4% of pre-tax wages in the US, depending on the number of employees hired. The organization deals with company staffing, benefits, human resources, and management risks. Small and medium-sized firms usually use PEO services.
Why use PEO, and how does it work?
PEOs offer small businesses the ability to manage a competitive edge without the high costs corporations can afford. Here are some of the reasons you might want to use PEO for your benefits and staffing needs.
If you agree with PEO, you will use a collaborative structure. Working together means that your employees are also PEO employees. It may sound daunting, and it is essential to understand that whatever PEO you choose will have authority over your tax and health responsibilities. In most cases, the PEO itself is responsible for making a mistake when, say, filing your taxes. As part of a collaboration, you still run your company, but let a PEO do what it does best: pay and benefits management.
What are the benefits of PEO over traditional HR?
The advantage of PEOs is that they will cover all aspects of employee management, not least as a co-employer means that the PEO becomes a registered employer for tax purposes and is responsible for all aspects of payroll. However, the business owner remains in control of the workforce, the work culture and is critical in hiring and firing decisions. In addition, PEO services can often take advantage of a benefits package that is more cost-effective and provides more than your business can offer on its own. As a result, you can show more attractive employee benefits and also spend more time doing hands-on work with your business so you can focus on expanding rather than getting bogged down in paperwork.
Singapore business visa
We are contacted every day for business visas and work permits in Singapore. However, we closely work with GlobalizationPedia, one of the best global PEO platforms to grow your business. It is a full-service PEO solution aiming to provide all facets of HR outsourcing while offering significant benefits and savings. GlobalizationPedia can cover virtually all employment issues, from recruitment to HR to payroll, and provide guidance and technology to support their goals. Since your business will operate under a co-op model, GlobalizationPedia can provide business intelligence and provide feedback on productivity and career opportunities for employees. In addition to helping with employee retention, GlobalizationPedia can also advise on occupational safety issues and provide liability protection as needed. All in all, it is a complete PEO solution that aims to save businesses money by reducing administration and personnel management costs and adding key employee benefits that might not usually be available. The package is pretty comprehensive, and there are tons of different options out there.
Disadvantages of PEO
PEOs can run various services, but they are not a magic pill and will not fix every problem for your small business. In some cases, they create more problems. If a client organization experiences a downturn in the industry, people can be transferred to another client, avoiding layoffs and loss of seniority. The potential disadvantage of this system for the client is a low loyalty (dedication) to the organization in which he/she works since he receives wages and benefits from the leasing company. Despite the shortcomings of this system, the volume of employee rent is growing. Put as much effort into finding PEO as you do about recruiting. Remember, working together means your PEO will be part of your team.
Using PEO is a way of outsourcing tasks that you don't have the time or experience to handle. Ideally, genuine experts in health insurance, retirement savings, and human resources best practices will then manage those tasks for you. Choose an HR partner whom you trust with confidential information. If you are a small business, you already know that time and money are scarce. Think about how to use PEO to recover time and dollars so you can solve the problems your business needs to solve.