Sometimes companies have trouble meeting their human resources needs, especially while also trying to increase profits. To assist in this area, many companies hire professional employer organizations (PEOs) to delegate many of its HR responsibilities. The PEO handles payroll, benefits administration, workers’ compensation, medical insurance and retirement accounts. Then, the company pays the PEO for its services.
A typical PEO provides the following six main services to its clients:
A good HR policy provides generalized guidance on the approach adopted by the organization, and therefore its employees, concerning various aspects of employment.
A process of defining policies and procedures to ensure your employment and work practices demonstrate a thorough understanding of applicable laws and regulations, while also being aware of the company's larger human capital resources objectives.
Responsible for providing accurate and timely front-line support, while going above and beyond in assisting our clients.
A practical guide on HR law and regulations: what you should know & how to ensure compliance to avoid breaching human resources laws.
Automating the human resources function in organizations. It includes employee payroll and compensation, talent acquisition and management, workforce analytics, performance management, and benefits administration.
Benefits selection and design are critical components in the total compensation costs. In some cases, benefits account for 40 percent or more of total compensation costs. Due to the employer cost investment and the importance of employee benefits in recruiting and retaining, employers should have a well-thought-out benefits plan design that meets both employee needs and employer objectives.
|Flexible compensation packages|
|Control over benefit plans offered|
|Assumes role as legal employer|
|Charges admin service fee - typically per employee per month|
|Negotiating power with benefit carriers|
|Assumes liability of legal tax and workplace standards|
Ultimately, if you want to work with a PEO, a PEO Alternative is an option that must be considered in light of your company’s cash flow, risk tolerance, employee numbers and preferred budgeting methods.
Contact ThinkTank Insurance Partners for more information about coverage options.