Small business owners who are considering PEO as a solution for their HR needs have options to choose from. However, there are certain characteristics to look for when exploring PEOs that separate one from another:
1. SERVICES AND SOLUTIONS GEARED TOWARD SMALLER BUSINESSES: An important factor for business owners
to consider is if a PEO has services specifically for smaller employers. Select PEOs offer solutions that are tailored for businesses with 1 to 9 employees, as opposed to one-size-fits-all services. Often, a tailored product can help a smaller business maximize the benefits they see from a PEO partnership.
2. HR TECHNOLOGY: Some PEOs will provide their clients with technology that helps manage HR administration. Services like payroll, benefits, PTO, and others can all be accessed via a PEO’s HR technology. Select professional employer organizations even offer mobile apps that make using their HR technology simple and easy for employees.
3. NATIONAL OR REGIONAL PEO: Most professional employer organizations will fall into one of two categories: national or regional. National PEOs generally operate throughout the country and have clients in numerous states, while regional PEOs focus their efforts on certain geographic areas of the country.
4. ESAC ACCREDITATION: In 1995, the Employer Services Assurance Corporation (ESAC) was formed to become the official accrediting agency
of the professional employer organization industry. PEOs that are accredited by ESAC meet the gold standards for industry best practices and financial reliability.
5. CERTIFIED PEO: On June 1, 2017, the Internal Revenue Service (IRS) began designating select PEOs as Certified Professional Employer Organizations (CPEO). This established an important benchmark for PEOs to reach, and provides another assurance to companies who partner with PEOs that they are working with a best-in- class organization.
PEO services are an option for 1 to 9 employee businesses struggling with HR
Working with a PEO can help small and medium sized employers reduce costs, improve HR processes, enhance employee benefits, better compete for talent, and ensure compliance with all employment legislation.
Even employers with 1 to 9 employees can partner with a PEO to receive the same benefits and advantages. Doing so can help business owners set their company up for growth and success!
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