If you're considering partnering with a Professional Employer Organization (PEO), you're no doubt familiar with the many advantages they offer. But you've probably also heard rumors about their potential pitfalls.
The good news is you don't have to worry. Many of the disadvantages commonly attributed to PEO companies are myths based on misconceptions of how they work with small businesses. Let's look at—and correct—some of these myths.
Myth 1: If I work with a PEO, I'll lose control of my company. This is false. Of course, it's normal for employers to worry about outsiders having access to the inner workings of their businesses. But they should remember that PEO companies work for them, not the other way around. This means the provider honors your vision for your business when handling your payroll and human resources administration.
Myth 2: I won't save any money. This is also false. Some of the many ways companies save with PEO companies include:
- Lower workers' compensation and health insurance costs. PEOs have the buying power to get you better coverage at lower prices than you can negotiate on your own.
- Lower employee turnover. Hiring, firing, and recruiting can take a big hit on your productivity. With your provider's professional HR support, you can be confident of hiring great people while fostering a productive, welcoming work environment that'll keep them on your side.
- More time to focus on profit. A PEO provider frees you to work on your business, not just in your business. Think of all the hours you spend now on payroll and human resources tasks—then think of all the ways you could grow your business if you got those hours back. Your provider makes it possible.
Myth 3: PEOs are the same as other HR outsourcing organizations. PEO companies do far more than just free you from HR paperwork. They also take on some of the most difficult burdens of running a business, such as providing employee benefits like group health insurance. In addition, they take on much of the legal liability of your company, giving you extra security and peace of mind.
Myth 4: My employees won't feel comfortable working with a PEO. If you've always prided yourself on treating your team like your family, you need not worry. Your provider won't interfere with the relationships you've worked so hard to cultivate. While your provider handles all your paperwork, you remain in charge of day-to-day operations. So for your team members, working with you will feel just the same as before, only better. With your PEO partnership, you'll be able to offer them the same generous benefits as big companies, even if your business is still small.
The bottom line: Contrary to these myths, PEOs actually give you more control over your business and give you the resources to build even stronger relationships with your team. If you're ready to start looking for a PEO partner, Employee Leasing Quotes has nearly two decades of experience working with reputable, carefully vetted providers. Call us today to find out more.