Manage HR Magazine | Tuesday, February 15, 2022
Offering employee benefits that meet, or preferably exceed, industry standards is one way to overcome today's recruiting and retention challenges
Fremont, CA: Compliance is frequently cited as one of the primary reasons for outsourcing HR. A PEO solution can assist clients in remaining compliant with all current and future employment law updates.
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Today's small and medium-sized businesses face mounting challenges that make business growth and success extremely difficult. Small and medium-sized businesses (SMBs) have increasingly turned to HR outsourcing and professional employer organizations (PEO) for assistance to address these issues.
If your client exhibits any of these five common HR symptoms, they may be a good fit for a PEO solution.
Rising HR Costs
A common concern for small and medium-sized businesses is the growing costs of human resources. This is especially true for health insurance and other employee benefits, as health care costs in the United States soar to record highs. These surges in plan prices, particularly for the small-group market, are causing significant headaches for smaller employers and their employees.
Partnering with a PEO can allow brokers to offer clients Fortune 500-level benefits while controlling (and in many cases reducing) the costs associated with employee benefits. This is just one way a PEO solution can assist both brokers and their clients.
Limited Business Expansion
Given the complexity of modern HR, it's not surprising that the time required to ensure that all HR administrative tasks are completed correctly has increased significantly. So, unfortunately, business leaders will have less time to devote to activities that will increase company growth.
Problems with Recruiting and Retaining Employees
Offering employee benefits that meet, or preferably exceed, industry standards is one way to overcome today's recruiting and retention challenges.
While this is frequently an issue for smaller employers, especially given the costs usually associated with it, partnering with a PEO can provide small businesses with access to benefits that are only available to much larger organizations. This can significantly aid in recruiting efforts while also reducing employee turnover.
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