A Professional Employer Organization (PEO) can help a small business manage several accounts and balance benefits. When working with small business owners, you should know they have plenty of roles and responsibilities. It can all be overwhelming for employers, from managing payroll and taxes to overseeing employee benefits.
What is a PEO?
A PEO is an organization that helps small businesses manage their human resources needs, including payroll and taxes, employee benefits administration, workers’ compensation insurance, and risk management services. In some cases, they even handle the recruitment and training of new employees.
PEOs allow business owners to focus on running the business instead of spending time dealing with administrative work. It enables them to be better focused and more productive in their roles.
What are the Benefits of a PEO for a Small Business?
PEOs provide services to help small businesses save money and maximize their resources. For example, they can negotiate better rates on employee benefits like health insurance and retirement plans, thereby reducing costs for the employer.
PEOs also provide access to professional advice from experienced HR managers. These professionals are usually better able to understand regulations and laws related to hiring, firing, payroll processing, and workers’ compensation insurance compliance.
Additionally, many PEOs offer specialized services that small business owners don’t have access to. Common examples include recruitment and training services.
One of the most significant advantages of using a PEO is that it helps reduce the risk associated with running a small business. When businesses outsource specific tasks to experienced providers such as PEOs, they become responsible for legal liabilities related to those roles. It frees up time and resources for employers, enabling them to focus on growing their businesses.
What to Look For in a PEO
When looking for the right PEO partner, your clients should consider the types of services they offer.
Does the PEO provide comprehensive HR and payroll services, or just a few? Are their services tailored to small businesses with limited resources? Do they have an established network of partners that can help provide additional benefits such as employee health insurance plans or retirement savings plans? These questions will help your clients determine the feasibility of a particular PEO for their needs.
It’s also essential to determine how easy your client’s business is to use the PEO’s services. And, of course, it is vital to discuss the pricing structure as well.
Takeaway
Outsourcing specific tasks to an experienced PEO gives small businesses the benefit of improved efficiency and increased cost savings. The right PEO partner can help your clients manage their workforce so that they can focus on the bottom line while keeping their employees happy and productive. And with you as their insurance agent providing valuable guidance and advice, business owners have the peace of mind of knowing they have coverage in the event something goes wrong.
About InsureMyWorkComp
InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138