As a small business owner, it’s easy to get bogged down in the tedious details of demanding and time-consuming HR administrative responsibilities. In fact, the average time spent on admin is about 16 hours a week, or two full days. Let that sink in. That’s two full days.
PEOs were created to help small businesses with many of the HR-related tasks through a co-employment relationship. This means there is a contractual allocation of shared responsibilities. The business maintains control over operations and managing employees, while the PEO oversees the HR responsibilities, such as payroll, Workers’ Comp, and benefits administration.
What would you do with two days a week?
Time is a precious commodity. Small businesses have to deal with the many of the same compliance issues and employment regulations as their larger competitors – but with limited resources. So adding back two days a week can make a significant difference. Here are three:
Build your bottom line.
While the PEO takes care of filing, processing, and managing the HR responsibilities, businesses have more time to invest in growing their business. 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.* And 70 percent of companies that use a PEO report revenue growth twice that of comparable non-PEO firms.** *Source: NAPEO, 2016 Key Findings. **PEOs: Good for Businesses and Their Employees. McBassi & Company. September 2017.
Enhance your employee benefits program.
Great benefits attract top talent and motivate workers. And it can also impact the bottom line. When employees are satisfied and more engaged, they are even more committed to meeting company goals. As a result, your business may see increased growth and stronger productivity.
A recent survey found that 73 percent of employees reported increased loyalty for their employer when offered the right benefits. However, due to costs, small businesses often find high-quality benefits out of reach. By working with a PEO, employers have access to top-rated health insurance options with stable and affordable rates. This is because of the PEO’s ability to pool employees together into one group to negotiate better health plans at lower rates.
Enjoy more peace of mind.
A breakdown in trust can be costly. Navigating the complexities of today’s workforce requires businesses to be more equipped than ever before. A certified PEO (CPEO) can help minimize the risks of costly compliance violations and protect your company from employment tax liabilities. Certification is a stamp of approval from the IRS and provides businesses with another level of added protection. In the CPEO arrangement, if something goes wrong, the CPEO is responsible, not the business.
Take Back Your Time.
Are you ready to get your two days back? A certified PEO, like Propel HR, can help you get back your time so you can get back to your core business.