Is it a good idea to use a Professional Employment Organization?

Is it a good idea to use a Professional Employment Organization?
Many small to mid-size businesses can benefit from using a Professional Employment Organization. Managing employees in today's workplace can be a daunting proposition. Small businesses often find themselves faced with the same challenges and responsibilities that larger corporations face, however they have far less resources to devote to them. Some of the PEO solutions that might help a small business include:

Outsourcing human resources or HR consultingOutsourcing payroll processingEmployee benefit administrationWorkers compensation third party administratorsCorporate compliance managementRisk managementOther administrative services such as creating employee handbooks

With a professional employer organization, you not only get the befits listed above (which includes the very important prospect of negotiating comprehensive employee benefit packages), but the ability to focus on your business, services, or products.




The answer to this question is "yes" for many small-medium size companies. If a company has between 5 and roughly 300 or so employees, and it considers its employees to be its number one asset, then there can be an excellent fit for teaming up with a PEO as a trusted HR Partner. The reasons are many, including: 1) greater efficiencies in handling HR, employee administration, payroll, workers comp, and more; 2) a better set of employee benefits; 3) a reduction in the number of vendor relationships; 4) the ability to focus on operations rather than administration; 5) the assurance that government compliance will be properly handled; and 6) a dramatic reduction in exposure to employer liability. Ultimately, a PEO customer should expect to secure a competitive edge by attracting and retaining top talent, and become more profitable as a result.
Considering the reasons stated above, the advantages are multiplied for companies that have employees in more than one state.
contributed by raykarno