As a small or medium-sized business owner, you already know that managing employees and HR tasks can be challenging and time-consuming. Not to mention stressful, especially when there are costly penalties for missed filings and compliance issues.
In fact, according to a survey conducted by the National Small Business Association (NSBA), small business owners spend an average of 25% of their time on HR-related tasks.
Let that sink in for a minute.
25% of your time: two hours a day, on average, that could be spent on your other core responsibilities.
That’s where a PEO (Professional Employer Organization) comes in. By outsourcing HR tasks, you’ll reap the time-saving benefits of working with a dedicated team of HR professionals, maximizing your productivity and growth potential in the process.
Time is your most valuable resource. Protect it!
Here’s a closer look at how a PEO can help you reclaim those lost hours:
Compliance risks of managing your own HR
As we touched on above, HR tasks aren’t just time-consuming but also nuanced and complex. To make it even more difficult, employment laws and regulations are constantly evolving, and there’s just no way for you to keep up.
Lack of compliance comes with a price: costly fines and penalties that can hurt both your bottom line and your reputation. In fact, in their Small Business Regulations Survey, the NSBA also found that 44% of small businesses identified complying with government regulations and taxes as their biggest challenge, spending well over $12,000/year on regulatory compliance.
A PEO can provide guidance on all your employment-related issues and questions, helping you develop compliant policies and procedures. That translates to less risk and a whole lot more peace of mind.
What other HR tasks can a PEO take off your plate?
Here are a few of the most valuable:
What’s your takeaway?
If you’re trying to wear too many hats, as many business owners and managers do, it’s time to get help and support. A PEO can be a perfect solution, letting you minimize risk, maintain compliance, and recoup precious time.
FAQs
How can working with a PEO save me time?
By partnering with a PEO, small business owners can delegate HR-related tasks and responsibilities, freeing up time to focus on core business activities. These include all the tasks we listed above and more.
Can a PEO help me stay compliant with HR-related laws and regulations?
Yes, absolutely. This includes compliance with federal, state, and local laws related to employment, payroll, taxes, and benefits.
How can a PEO help me save money?
A PEO can help small business owners avoid costly fines and penalties associated with non-compliance. Think of it as having a dedicated HR team, just for a fraction of the overhead cost.
Can a PEO help me attract and retain employees?
Yes! A PEO can help you attract and retain employees by offering competitive benefits packages and implementing best practices for hiring and onboarding. Additionally, a PEO can provide training and development programs to help employees grow and succeed in their roles.
How do I choose the right PEO for my business?
It’s important to consider a variety of factors, including: the PEO’s experience and expertise, the range of services offered, the pricing model, and the level of customer support provided. It’s also helpful to read reviews and ask for references from other small business owners who have worked with the PEO in the past. Ask for case studies, if they have them.
Can I still maintain control over my business if I work with a PEO?
Yes, 100%. While the PEO will handle HR-related tasks and responsibilities, small business owners will still be responsible for managing their core business activities and making strategic decisions about the direction of their business.