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An Easy HR Solution – Outsource To A PEO
4.
Does the PEO offer all the services your organization needs?
5.
How are services delivered? (e.g. in person, via the Web, through a call center or a combination.)
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What kind of assistance does the PEO provide on strategic HR issues such as recruiting highly qualified executives and employee training?
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What are the fees and how are they determined?
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Can the PEO handle growth in your workforce?
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Will the PEO provide you with client references to contact?
By Michael Chacho The Montessori Foundation has worked with Administaff for years and wants to pass this resouce on to IMC members. IT
HAS
BEEN
HAILED AS ONE OF THE MOST POPULAR ADMINISTRATIVE TRENDS OF THE PAST DECADE – human resources (HR) outsourcing. From payroll processing and health care benefits to retirement services and recruiting, there are many reasons to consider taking the HR function to an outside source.
When it comes to outsourcing various elements of HR on a piecemeal basis, there are a variety of choices. Hiring a professional employer organization (PEO), which serves as a one-stop-HRshop, is an attractive option for an increasing number of small and mediumsized businesses. What is a PEO and how does it benefit your organization? It might be easier to start with what a PEO is not—a PEO is not a temporary firm, a staffing agency, a simple payroll service or a placement agency. A PEO serves as an HR department for small and medium-sized businesses. By entering into a relationship with a PEO, companies receive assistance with payroll processing, employee benefits management and compliance with the growing number of federal and state employerrelated laws and regulations. With a PEO at its side, a small or medium-sized business is in a better position to compete with much larger companies, especially when it comes to employee benefits. Benefits provided by
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full-service PEOs such as Administaff, the USA’s leading PEO, rival those of big corporations, making them an essential tool in recruiting talented employees. Those benefits often include medical, dental and vision coverage, retirement programs, life and disability insurance, on-site and online training programs, tuition reimbursement, credit union services and adoption assistance. Besides providing and managing a wide range of employee benefits, a PEO typically handles all personnel-related functions such as payroll processing, payroll tax filings, assistance with developing employee handbooks, employment tax filings, and workers’ compensation coverage and claims resolution. Most small companies simply don’t have the budget or staff to perform all of those functions. By using a PEO to provide those value-added services, business owners, in effect, multiply their capabilities without increasing labor costs, freeing them to concentrate on their core business. What should business owners consider when selecting a PEO? 1.
Is the PEO licensed in your state and do they have a local office?
2.
Is the PEO a member of the National Association of Professional Employer Organizations (NAPEO)?
3.
Have complaints been filed against the PEO?
Montessori Leadership / January 2009
10. Does the PEO have the staff needed to deliver on its promises? 11. Is the PEO accredited by the Employer Services Assurance Corporation (ESAC)? PEOs can bring much-needed relief to small and medium-sized businesses that want to spend more time building their entrepreneurial dream and less time coping with HR issues. With HR in the capable hands of a team of specialists, business owners can sleep well knowing that their employees are being taken care of and their clients are getting the time and attention they deserve. Michael Chacho is a bus;iness consultant for Administaff (NYSE: ASF), the nation’s leading professional employer organization (PEO), serving as a full-service human resources department that provides small and medium-sized businesses with administrative relief, big-company benefits, reduced liabilities and a systematic way to improve productivity. For additional information about Administaff, call 303-915-0788 or visit http://www.administaff.com.
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