Did you know that PEOs are behind most employers that offer the best employee benefits?
One effective method by which big companies retain their workers and attract great talents is by offering competitive and mouth-watering benefits to workers. But with the help of a professional employer organization (PEO), small businesses that do not have a strong HR unit are equally able to do the same.
With a PEO solution, organizations — both small and big — have a fine chance to maximize their HR resources and make their employees happier than ever. With the support of a PEO, for instance, small businesses can offer competitive health insurance, a 401(K) plan, and other juicy perks that create work satisfaction.
In this article, we'll discover in further detail how small and medium-sized businesses can improve their employees' benefits plans by partnering with a professional employer organization PEO.
PEOs are Designed to Help SMBs
PEOs by design, primarily help small and medium-sized businesses. A professional employer organization has better and well-run HR solutions which SMBs do not have. PEOs can also provide enticing perks and employee benefits to organizations that can't afford them. This brings SMBs head-to-head with large organizations and multinationals that offer very competitive employee benefits packages to their staff.
By partnering with a professional employer organization, these SMBs can appreciate and retain good and hard-working employees. Additionally, they can attract and keep great employees too. As an added benefit, small business owners can then focus on the most important aspects of their businesses when a PEO is actively involved in the system.
PEOs are Much More Affordable
This is the major reason why SMBs partner with a professional employer organization (PEO). If SMBs were to cater to their HR needs alone, they'd spend a fortune. Most PEOs have the capacity and network to provide the kind of benefits that only fortune 500 companies can offer their workers.
Full health insurance is one of them. Another is the 401(K) retirement savings plan. When it comes to matching employees' contributions to a 401(K) plan, a PEO co-employment structure allows small business owners to offer impressive support to their employees. Professional Employer Organizations work with a lot of insurance companies, providing hospital and accident insurance policies, life and group life insurance policies, and so on.
Because of this, PEOs can accommodate lots of workers under their umbrella. Working with many small businesses at a time makes it easy for PEOs to offer access to medical, dental, and vision coverage at affordable rates to employees since they are specialized in finding the most brilliant and affordable offers out there.
PEOs Can Help Employees Understand Their Benefits Better
Remember that the partnership existing between a PEO and its client companies is a co-employment relationship, where both parties are jointly responsible for the welfare of employees working for the organization. And being that the PEOs are focused more on ensuring that employers get the best benefits package, they're in a better position to help employees understand their benefits and all their entitlements.
To boost employee satisfaction, employee engagement, and employee retention, companies can turn to PEOs, as they have the resources and structure to make it happen. This saves employers a lot of headaches.
PEOs Help SMBs to Provide Excellent Retirement Plans
Companies that offer good retirement plans are usually known for retaining their employees. By partnering with a professional employer organization, a small business owner can provide 401(k) plans to employees.
401(K)s are gaining increasing popularity among employees today, so companies can offer 401(K) plans and other kinds of retirement benefits.
Providing Employee Child Care Leave Benefits
Not many small and medium-sized businesses can provide employees with a paid child care leave. This is another area where PEOs step in with their expertise and better coverage. Employees who give birth or adopt a child can take advantage of the Family and Medical Leave Act.
Paid parental leave is very important for establishing a healthy work-life balance. Using a PEO that offers this benefit is a simple and effective way to keep your employees from leaving to other companies — possibly competitors — that offer better benefits.
Employers Also Benefit Greatly from Partnering with PEOs
When small companies incorporate PEO solutions into their HR systems, they can cut back on expenses in several ways. For instance, PEOs reduce employee-related costs by providing several employee benefits and workers' compensation at discounted costs. Here are other ways employers can benefit from their relationships with professional employer organizations:
PEOs assist with recruiting, onboarding, training, and the orientation of new hires in the organization.
They provide additional HR support and technology to their clients and
management
They help to spell out job descriptions to employees, as well as provide government compliance and regulatory guidance to both employees and employers.
As a co-employer, PEOs assume fiduciary liability, shielding small business owners from potential legal issues associated with employee retirement plans.
Conclusion
The role of a professional employer organization in a typical co-employment relationship with a client company is pivotal to the success of the company. But most importantly, the opportunity to offer competitive or impressive benefits packages to employees is more or less the icing on the cake. After all, employees will always move to organizations that have their interests at heart.
Looking to partner with a PEO? Reach out to us today at The Mission HR. We provide best-in-class PEO and HR services to small and medium-sized business owners and government contractors. The Mission HR is a leading partner in the PEO, HR, payroll, and benefits outsourcing marketplace. We serve as a trusted partner in integrated human resource compliance, risk management, employee benefits, and employment practices liability insurance (EPLI).