A Professional Employer Organization (PEO) is a third party that handles administrative duties for small-to-medium-sized businesses that may not have the resources to perform them in-house. Responsibilities that a PEO handles on behalf of a business include payroll processing, benefits administration, employee relations support, and compliance assistance. Beyond the convenience factor a PEO can provide your business, it can also be beneficial because it allows you more time to focus on what matters most to your bottom line – your clients, your product and/or service, and your people.
Increases Quality of Candidates
By working with a PEO, your organization (even if it’s on the smaller size) will be able to take advantage of their group buying power and have access to the same comprehensive benefits packages that much larger companies are able to offer. Having a competitive benefits package will prevent your firm from losing your best employees and/or losing out on the consideration of top talent. Oftentimes, the potential savings on the employee benefits plans can offset much of the PEO’s fees.
Frees Up Time for Your Staff
Among the transactional activities a PEO can handle for you are Personnel & HR Records, payroll tax reporting, unemployment claims- protesting & prevention, OSHA compliance support, COBRA & HIPAA Administration, ACA reporting, employee handbook development, and many other compliance related activities. If your organization opts to have a PEO handle all those time-consuming administrative tasks, it allows for more freedom to be able to focus on areas such as customer service, A/R collections, sales, and production or quality assurance. The organization’s employees are able to focus more on profitable activities versus transactional, compliance driven administrative tasks.
Improves Retention Rate
Turnover is an obstacle that can affect your staffing firm’s reputation, and affect its client base. If the employees are dissatisfied in the level of service they receive from your organization, such as errors in payroll or a long response time to their inquiries because your workload is so high, they may get frustrated and turn to another company. A PEO can lighten your workload by taking care of the administration and ensuring it’s accurate, so you can focus on the “people” aspect of your business.
If you’ve determined that a PEO would be an ideal solution for your business, consider partnering with Ethan Allen HR and Ethan Allen Workforce Solutions. Ethan Allen’s PEO division, Ethan Allen HR, has a proven track record of success and client satisfaction. We pride ourselves on partnering with our clients to ensure all of their unique PEO needs are met. Learn more about Ethan Allen HR and how we can help you succeed with your Hudson Valley employment service needs.