Employers in the construction industry are faced with many challenges. Difficulty finding qualified employees, high turnover, long days and weather delays can create chaos for contractors. And the struggle to stay on top of paperwork and employment related issues is constant.
Thankfully, Professional Employer Organizations (PEOs) are structured to help contractors by handling the administrative side of running their business, so they can focus on work that generates revenue and growth. All of the HR tasks that take attention from the critical needs of the business are now someone else’s problem. Sounds pretty great, right? But there’s more!
1) Big Workers’ Compensation Insurance Discounts
Contractors know that workers' compensation insurance can many times be the most expensive cost of doing business. The risk involved in construction work make it very difficult to find an affordable policy that provides the amount of coverage needed. Plus, if you’ve had claims or a high xmod, your rates are probably eating away profits.
That’s where a PEO company can provide a lifeline. Using these services can immediately slash your comp rates by up to 40%! A PEO's master workers' compensation insurance policy provides discounts on insurance rates- even for those who have had claims issues.
In addition to the savings, PEOs can also help you avoid future workers’ compensation claims. A PEO’s risk management team can instill work site safety programs to ensure your employees are knowledgeable and educated on how to best perform their job safely. They can also assist in keeping your loss ratio low by promoting safety performance programs for your employees.
PEO providers can also increase your cash flow by eliminating the down payments that are often required when purchasing workers' compensation insurance. And often, the PEO can offer workers' comp on a pay as you go basis. When you need a certificate of insurance for a job or bid, the PEO makes the process quick and easy.
2) Employee Benefits and Other Hiring Incentives
Offering healthcare and other benefits to employees is something most would like to do, but many are unable to afford. But the truth is, not offering benefits can sometimes hinder the ability to attract good talent. These days, employees need to know that they will be taken care of if they get sick or have an accident.
When you work with a PEO, your construction company joins a much larger organization that has expanded buying power. This makes it easier to get better healthcare plans with lower rates, and even other benefits like 401(k) retirement plans.
PEOs offer many supplemental plans to choose from, as well. Dental and Vision plans are available, as well as prescription and life insurance. Without these programs, many contractors could only dream of offering these programs to their employees.
3) You’re Always in Compliance with an HR Team
No matter how big your company is, you always have to keep up with ever-changing human resources regulations. Healthcare, labor and employment laws, along with retirement, unemployment, paid time off, and many other regulations affect employment relationships and deserve constant attention.
A PEO can provide your company with a full-service program that you can count on, reducing the headaches of employment administration and costly mistakes. PEOs utilize the most up to date HR platforms, policies, and procedures to help keep businesses compliant and running smoothly.
A PEO can also keep you safe from costly lawsuits and fines related to wrongful termination, discrimination, sexual harassment and other claims with their EPLI coverage. This peace of mind in today’s society is an invaluable service.
But the biggest reason to use a PEO to outsource your HR tasks is that employers can spend less time dealing with paperwork and more time focusing on what they do best. No more long nights at the office, or dialing for answers to critical questions. The PEO’s professional HR team has you covered.
So in short, the right PEO company allows employers to unload their employee related paperwork hassles and much of their risk and liability – for far less than you could do on your own! Their professionally trained HR experts administer all paperwork and claims issues. This frees up the business owner to focus on growing their business. The employer remains responsible for core business functions like business operations, marketing, sales and service, and still retains all the authority over employees’ day to day activities.
4) Simplified, Accurate, On Time Payroll
Doing payroll for your company is a time-consuming task that doesn’t allow for mistakes. Your employees expect to be paid on time each week, and trust you to make sure their withholding taxes and W2s will be handled correctly. But unless you are an expert on payroll, making mistakes inevitable. And all of this paperwork takes you away from sales, service and the growth of your construction operations.
The best way to manage your payroll administration is to outsource with a PEO service. These services eliminate the burden and hassle of payroll. They provide options of paychecks, direct deposit, or pay cards for your employees. Plus, you’ll have access to online paystubs, employee records, deduction and garnishment changes and more. Simplifying the process for any business, chose to report payroll online, by phone, or even email – it’s your choice!
PEOs Can Help Your Construction Business
When you partner with a PEO, you're giving the non-productive work to an organization with experts and years of experience dealing with these matters. With fewer administrative obligations removed your plate, you can zero in on driving your organization to more productive and fulfilling work. You’ll be able to win more bids, gain higher profit margins, and have more time for things that matter for your construction business.
The best way to find the perfect PEO fit is to call the experts at ELQ. Our company was founded in 2001, and we are the experts in the PEO industry. Our goal is to connect you with a provider that will best fit your unique business. PEO services are all different in how they work and what they specialize in and process ensures you’ll access the best provider. Plus, our negation and leverage in the industry ensure you get the BEST pricing.
We pride ourselves on providing the best customer service in the industry, and we strive for 100% satisfaction. Check out our many customer testimonials, then give us a call. We'll help you start saving time and money today!