Things are hard for everyone right now. The world has gone all topsy-turvy on us and all this uncertainty is making it hard to be a small business owner. The help the government is providing is causing problems of its own; it’s burying business owners in paperwork and restricting them with new regulations in a time when everything already feels like too much. A PEO won’t fix all your problems, but it will help you reduce operating costs, keep you compliant, and provide the guidance and support you need to make the decisions that will keep you in business now and help you prosper in the future.
What is a PEO?
A Professional Employer Organization, or PEO, is a business model that helps small to mid-sized businesses manage the everyday HR needs that smaller businesses struggle to handle alone, like paying employees, filing payroll taxes, providing health insurance (and other benefits), getting workers compensation coverage, writing employee policies, managing employee issues, and more.
A PEO manages the entirety of the employee life cycle under one roof – consolidating your vendor relationships and, ultimately, freeing you up for everything else that matters to your business.
How a PEO can help you in a post COVID world
CARES Act & the FFCRA
Navigating the provisions in the CARES Act and The Families First Coronavirus Response Act (FFCRA) can feel daunting. A PEO has the professionals and processes in place to help its clients meet all requirements and implement the programs in the new COVID-19 legislation, taking the load off business leaders/employers?. So, when other business leaders are trying to become HR experts overnight, PEO clients can be confident that their business is covered. PEO clients can use that time and energy to grow and protect their businesses. A study by the National Association of Professional Employer Organization (NAPEO) found that businesses that work with a PEO are 50% less likely to go out of business.
Recruiting, Furloughs & Layoffs
With so much contradicting information out there, it’s hard to know what the best course of action for your business is and how to implement your decisions. When you work with a PEO, you have experts on your team to help you work out the best course of action for you, your business and your employees. You protect yourself from litigation when you work with a PEO like XcelHR. A PEO’s integrated employee management functions ensure that your processes are compliant with all employment laws that apply to your business. They ensure that you’re not caught off-guard months later with fines and litigation that can bring your recovery to a full stop.
In addition to guidance, a PEO saves you time by doing all the heavy lifting that comes with managing your employees, accurately tracking information and integrating regulated processes. Precision and efficiency are achieved by combining technology with the knowledge and experience of seasoned professionals.
Cost Savings
With budgets stretched thin and savings evaporating, it’s time to start eliminating waste and inefficiencies. A PEO eliminates the inefficiencies that come with managing a web of third party vendors with multiple points of contact, who ask for the same information over and over again. When you work with a PEO, you have one point of contact for all your needs, while keeping all the services you need to manage your employees at a fraction of the cost of using multiple vendors. On average, employers save 20-40% in administrative overhead by partnering with XcelHR.
A Team of Experts
PEO’s are not technology companies, they are people companies. What makes them different from your payroll software or a Google search is that a PEO leverages technology where it makes sense and always integrates people into every aspect of its services. Our people have the expertise and experience to answer your questions and guide you through difficult times. After all, business is about relationships.
A PEO Grows with You
A study by NAPEO found that businesses that work with a PEO grow 7-9% faster than those that don’t. So, once we are past the mess (coronavirus?) and your business starts to grow again, a PEO will grow with you. Need to offer health insurance or expand your benefit offerings? A PEO will be there to give you access to Fortune 500 benefits, guide you through the process, and reduce costs. Need to quickly grow your workforce? A PEO will help you search for talent and eliminate the administrative burden that comes from growing your team. Need to expand regionally or nationally? A PEO will ensure your business complies with all national, state, and local employee laws.
It’s always been a great idea to work with a PEO, but now more than ever it’s the cost savings, and Compliance shield you need to thrive in this post COVID-19 world. If you’re ready to learn more about how a PEO can protect your business, save money, and reclaim your time, Contact XcelHR Today.