When determining whether to hire an HR specialist or outsource a PEO, there are a lot of variables to consider, and every company’s needs are unique.
Many small companies find that as they grow, they can no longer maintain payroll easily. Other companies find they’re unable to offer benefits to attract the best talent. Or, maybe you simply feel like you don’t have the availability and resources to support your employees’ needs.
As companies grow, so do their HR needs. And more growing business owners wish to focus on business needs, making a more hands-off approach to HR appealing. But, what’s best: an in-house solution or a PEO?
When to Hire an In-House HR Solution and when to Outsource HR
No two businesses or business owners are the same, so take your individual needs into consideration when determining whether or not to outsource your HR solutions. The first questions to ask yourself when determining whether or not to outsource an HR solution are:
How quickly is my business growing? What current and upcoming needs do I anticipate to continue or expedite growth?
When considering the rate of your business’ growth, determine the effectiveness and efficiency an in-house HR solution may have versus an outsourced solution. What internal resources would be needed to bring HR in-house?
What are the core business objectives you have?
If the efficiency of a PEO may assist in getting your business to the next level, it may be worth outsourcing.
What HR needs do I actually have?
Many start-ups or small businesses fool themselves into thinking they have limited HR needs, however, as businesses grow, so do HR needs. In order to secure and keep the best talent, companies should consider extended benefits. Additionally, growing companies can also be plagued with growing compliance concerns.
The Pros and Cons of Hiring a PEO
A PEO can be an extremely valuable tool to companies of all sizes. Many small businesses want to focus their time and energy on growth and not on HR tasks that can easily be outsourced. Midsize businesses have many moving parts and often benefit from assistance with compliance. Larger businesses, even those with internal HR support, can benefit from a PEO solution to provide payroll, benefits, and time solutions.
It is important to recognize that most PEOs can assist with only selected tasks, offering an a la carte sort of menu. This allows growing companies to select the exact tasks that they may need assistance with.
Overall, most companies can benefit from a PEO’s skills and knowledge, compliance expertise, and efficiency.
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.