Myth 1: Business Owners Lose Control of their Business
Perhaps the number one concern that business owners have about working with a PEO is the fear of losing control of their business, so it’s no surprise that this is one of the most common PEO myths, too. However, this myth isn’t true. In fact, owners don’t lose any control when they partner with a professional employer organization. Instead, businesses gain a strategic partner who shares various HR responsibilities to ensure improved practices, strategies, and efficiency. But this isn’t the only myth that exists about responsibilities and business control.
Myth 2: A PEO can Hire and Fire a Client’s Employees
Along with losing control of the day-to-day aspects of their company, some business owners assume that a PEO takes over hiring, promoting, and firing employees. But this myth has also been busted. In a PEO partnership, all talent management responsibilities stay with the owner. This means they get to make all hiring and firing decisions, along with any promotions or raises that are given to employees. All a business owner would need to do is notify their PEO so that all HR and employment documentation is updated accordingly. It should be noted that some PEOs do offer recruiting services to their clients and can help small business owners find potential new hires. However, the decision to interview or hire a candidate rests solely with the owner, and not the PEO.
Myth 3: My Business is Too Big or Too Small for a PEO
According to the National Association of Professional Employer Organizations (NAPEO), the average PEO client has around 22 employees. But another common misconception is that PEO is only an option for companies around this size—and more specifically, that much larger or much smaller employers can’t benefit from this HR solution. However, most PEOs will work with clients who have a wide-range of employees. And while the exact employee number will vary depending on the PEO, some will work with start-ups who have just 1 full-time employee to medium-sized companies with upwards of 1,000 workers. Some professional employer organizations will even go beyond 1,000 employees! Companies of just about any size stand to gain from a PEO partnership, debunking this popular myth.
Just give Cosmo Insurance Agency a call. We will simplify the process for you!
Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.
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