As the COVID-19 crisis continues to unfold, how can you take care of employees and lower HR costs at the same time? Here are five important areas where a PEO can deliver significant value.
Lower HR-related Expenses. Saving money is a top priority for business owners with limited resources. A PEO can help businesses gain a new perspective on making effective cost-saving decisions now and for the long-term.
Studies show that businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business.
The ROI for companies that use a PEO - based on cost savings alone - is 27.2 % per year.*
In addition, while the PEO takes care of filing, processing, and managing the HR responsibilities, employers have more time to focus on their business. *Laurie Bassi and Dan McMurrer, McBassi & Company September 2019.
Reduced Liability. How can you conduct business within the framework of uncertainty?
As the pandemic continues, so do the risks of HR-related compliance issues. A PEO can provide guidance for navigating new and changing employment laws and help minimize the risks of costly compliance violations while protecting your employees and your company.
Better & More Cost-Efficient Benefits. Due to costs, small businesses often find high-quality employee benefits out of reach. A PEO can help employers gain access to high quality employee benefits, such as health insurance options with stable and affordable rates. This is because of the PEO’s ability to pool employees together into one group as a way to negotiate better plans at lower rates.
READ MORE: COVID-19 HR Checklist
Access to a Team of HR Experts. What type of HR policies do you need to have in place? What are the liabilities and legal responsibilities? What changes do you need to make in your benefits program? Partnering with a PEO is much like gaining access to a full-service HR division, with a team of HR experts who are up-to-date with new and changing employment laws and able to identify ways to streamline your HR.
According to a report conducted by the National Association of Professional Employer Organizations (NAPEO), PEOs provide access to more HR services at a cost that is close to $450 lower per employee, compared to companies that manage their HR services in-house.
Managing Remote Workers. The pandemic forced many employees to work remotely from home. From productivity to liability, a PEO can help employers with a range of new issues associated with managing a remote workforce.
We Are All In this Together. Uncertain times are a challenge for any business, but it is especially so for a small business. And we are here to help. To learn how a PEO can save your business money, contact us at (800) 446-6567.
About Propel HR. As an IRS-certified Professional Employer Organization (PEO), Propel HR has been a leading provider of Human Resources and payroll solutions for more than 20 years. We partner with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs.
