There are many pros and cons to consider when deciding on a solution to help manage your company’s payroll and HR processes.
Depending on your company’s needs, size, and future goals, there are different solutions you may contemplate. A PEO is a wonderful option for many small to midsize businesses. It is important to consider both the pros and cons when determining what is right for your business.
PRO: Assistance with Traditionally Intimidating HR Tasks
Perhaps the greatest benefit to joining a PEO is that your employees will be “co-employed” by the PEO, meaning the PEO shares in risks and liabilities. Your PEO will help to manage tasks like unemployment and worker’s comp, which can be intimidating especially for smaller businesses or businesses without a traditional or full-time HR solution.
CON: Inefficiencies
Because employees are co-employed within the PEO, business owners will need to keep the PEO looped in should any issues arise. This can create some inefficiencies and slow things down when times are tumultuous. Be careful when selecting your PEO to ensure your communication strategy aligns.
PRO: Better Employee Benefits
PEOs have the power to offer better employee benefits than most small businesses. This is because they house a larger pool of employees from many companies, and are therefore able to shop a broader expanse of benefits like health insurance. There is power in numbers, and PEOs have the power to negotiate lower group costs for perks. Not only are these benefits and perks appealing for current employees, offering better insurance and company perks can help small and mid-size businesses attract and retain better talent as well.
CON: Less Benefit Customization
PEOs obtain group rates for benefits, meaning there is less opportunity to customize for your business.
PRO: Additional HR Services
PEOs can provide companies with additional HR services like training, recruiting, and continuing education. These perks can traditionally be very expensive and unobtainable for small and mid-size businesses, but with a PEO they can really improve employee morale and performance.
CON: Lower Accessibility
Communication between your business and your PEO can be clunky when it comes to company data. This is why it is so important to select the right PEO and ensure you assign someone to be the direct line of communication between your business and PEO.
Is a PEO right for your business?
There is a lot to take into consideration when determining if a PEO is right for your business, as the services you receive from a PEO differ greatly from what you could receive from an HR employee or HR provider. From payroll to insurance, our comprehensive platform can significantly expand the options available to your employees.
EPS offers unbeatable support backed by an unparalleled team of experienced specialists to assist with your PEO needs. If you are unsatisfied with your current provider or are looking for a PEO for the first time, give us a call today.