The most significant costs that a startup or upcoming business incurs are HR related. Wages, personnel insurance and employees' benefits are getting costlier every day. In addition to their costliness, they are a must-have for a business looking to retain top-notch personnel in their team. A high percentile of employees reveals that they'd leave a high paying job for a low-paying one with better benefits. PEOs provide the perfect solution for SME owners seeking assistance with benefits, payroll, and other HR function use digitalexits to find the correct Georgia PEO.
As mentioned earlier, PEOs provide solutions for businesses looking to provide their staff with fortune-500-companies-class benefits. The quality of their benefits greatly influences employee motivation. PEOs leverage their large number of employees they co-employ with their clients to obtain excellent benefits for them at massive discounts. Health insurance with a PEO can save you up to $2,400 annually per employee. The accruing economies of scale also apply to the cost of Workers' Compensation, life and disability plans and other benefits.
Payroll and tax management
As an employer, you have the responsibility to run your payroll, state and federal taxes, and W2 requirements, failure to which you will face severe penalties, fines, and lawsuits. PEOs have experts to help you manage your payroll and tax deductions to protect you from the risks associated with non-compliance. Moreover, your PEO will manage your unemployment payments, bringing new employees into the system and removing the records of those who leave. All these taxes can be overwhelmingly complicated for a beginner, but with a PEO, you are sure that everything is running as properly.
They enable you to focus on business growth
As a small business owner, most of your work will naturally be directed towards business development; product improvement, increasing market share, product promotion, and research. A PEO will enable you to do just that, as they will manage your HR department for you; from recruitment, staff training, benefits administration, payroll management and handling of taxes.
Reduce employee turnover
The main issue faced by small businesses is high employee turnover, with a 10-14 point difference between them and more established companies. Turnover is an expensive and time-consuming inconvenience that brings in extra costs in recruitment, training, and orientation not to mention the anxiety involved in frequently handling the vacancies. In addition to expenses, high employee turnover will ruin your corporate image, affect employees' morale and affect the quality of talent you obtain.
PEOs are equipped with HR experts to help you avert this problem by offering training both to you and your staff, getting you skilled candidates from their pool and offer the best benefits to entice them.
Ensure that the workplace is compliant with set regulations
PEOs help your business adapt the workplace to healthcare reforms, COBRA, and OSHA requirements among others. This will protect your business from the repercussions of non-compliance.
Working with a PEO is an increasing trend among small business owners. They enable their clients to increase efficiencies in HR management and streamline all administrative tasks.