Do you own a business? Do you often find yourself swamped with responsibilities, wondering how to keep up with it all?
If so, you might be interested in a professional employer organization (PEO).
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These companies provide comprehensive HR services that allow you to keep control of the management of your business but take some of the more tedious but necessary tasks off of your plate.
But what is a professional employer organization, and who needs one?
We’ll answer these questions below. Keep reading to learn all about getting professional employer organization services!
Table of Contents
Professional Employer Organization Definition
First, we should start by defining the term “professional employer organization.” What are they?
When you start a business, you need people to work on your team.
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Any time you have employees, you need to provide them with human resources services, such as employee benefits, wages and payroll, and taxes.
For many businesses, this might seem overwhelming. Yet, it’s necessary. After all, you need to compensate employees in order to retain them, and that often comes with taxes and other aspects.
So how do you balance everything?
What Professional Employer Organizations Do
This is where professional employer organizations come in. They provide professional human resources services to different companies while allowing you to maintain managerial control over your employees. In essence, they handle the employment side of the company, freeing you up to focus on steering your staff in the direction you want to go.
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When you work with a professional employer organization, you co-employ workers with the organization. Your workers are listed under the organization’s tax ID, and they take care of your HR services and share liability when something goes wrong.
In turn, you relinquish some control over your company and will need to report to the organization if an issue arises. Yet, you maintain your ability to manage your team.
If you have questions about how much control any individual company will require you to give up, contact them prior to signing a contract and ask.
Who Benefits from a Professional Employer Organization?
When should you seek out the services of a professional employer organization?
Companies who want to outsource their human resources work should consider using professional employer organization PEO services. They are terrific for small businesses that don’t have the funding for a professional HR team.
They also give businesses the option for lower benefit rates. You might not be able to personally tailor a healthcare plan to the needs of your employees, but you’ll be able to get your benefits for less money.
They provide great services to companies looking to lower the overhead of taking on an HR team.
Want a great professional employer organization? Try Avitus Group.
Ready to Outsource Your HR?
Are you ready to hire a professional employer organization?
When you work with a PEO, you get the team you need to take care of your HR services. If you’re a company that needs help with human resources, you should look into working with a PEO company.
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