PEOs Can Ease Burden

Nothing good comes easy, and that includes hiring and managing employees. That's why many small businesses turn to professional employer organizations (PEOs) to handle the complex, time-consuming administrative burdens.

PEOs are companies that help businesses find and hire people, plus manage such things as health benefits, worker's compensation claims, payroll, unemployment insurance and more.

As a business owner, you contract, with a PEO to assume these and other responsibilities, allowing you to concentrate on the revenue-producing side of operations. PEOs establish and maintain an employer relationship with the workers assigned to you. They assume many employer responsibilities and risks.

Most small businesses are new to the human resources (HR) field. One advantage of using a professional employer organization is that they have experienced HR workers who can handle benefits, payroll, OSHA compliance, and just about everything else you will need. By bringing employees into a larger overall group, a PEO can offer your workers benefits, such as health insurance and retirement plans. These can be valuable perks you would be hard-pressed to deliver on your own.

Pre-employment testing is another area where PEOs can help. Without a screening process, you risk placing the wrong person in the job, leading to lost productivity and costly turnover. PEOs tailor pre-employment tests to predict loyalty to you, as well as success on a specific job. The tests aren't foolproof, but they can have a positive impact.

Small-business owners don't relish the idea of reading stacks of resumes and conducting interviews for prospective hires. PEOs can reduce this burden and deliver candidates quickly, then handle the paperwork for the new hire. Some PEOs have entire divisions devoted to recruiting and helping small-business owners gather information to make the right hiring decisions.

An excellent source of information for identifying and working with PEOs is the National Association of Professional Employer Organizations (NAPEO). Its a WB site, http://www.napeo.org, describes how PEOs work, the benefits they offer new and growing small businesses and guidelines for selecting one that is right for your HR needs

article from
The Beacon Journal/Ohio.com
Gary Sutherland