How A Professional Employer Organization Can Help Your Growing Business
New small businesses have a lot on their plates; they are just trying to get started and build their brand. They have only a limited number of resources available to fulfill all the responsibilities of a human resources department. A PEO, or professional employer organization can assist these fledgling companies in handling those essential functions that a small staff simply doesn’t have time to manage.
Another important role that a PEO can play is when your small, growing company wants to do business in a different country. For example, employment solutions in Malaysia can help you move into that growing market affordably without having to personally deal with the burden of navigating the local government’s maze of regulations, they take care of everything so you can focus on doing business!
Let’s take a look at what PEOs do and how they can help you!
The PEO Defined
Professional employer organizations are business support services that help companies manage their human resources, or HR department on many levels. This can include recruiting, hiring, payroll, benefits, and much more. When your business outsources its HR department’s operations to a PEO, it acts as a co-employer for your company’s employees so you can focus on other objectives.
Recruiting & Hiring
When your company is seeking qualified candidates for new or open positions, the PEO can advertise the job descriptions on networking channels and job boards, vet the best potential candidates, do the hiring with as much input as you feel inclined to give, put them through the training process, and offer suggestions on what your local hires will feel are attractive and affordable salaries for every position. The end result is that you get quality new employees without having to manage the process directly.
Employee Performance
The PEO can help your company define and implement insightful employee performance reviews. They can provide assistance with employee evaluations, and coach your supervisors and managers on the best way to perform productive employee evaluations and how to offer the employees resources and incentives to promote their personal growth and development within your company. The PEO can play an important, even central role in employee training and skill building, by designing and maintaining educational systems that give your employees clear training goals that will help them maximize their productivity and value.
Payroll
Once they have helped you source your employees, the PEO can take care of the payroll for you, including documentation, sick-day and holiday accrual, tax withholdings, and all the other details that go into compensating your workers. Usually, the PEO implements an automated payroll system that pays employees by direct deposit on the day of the month chosen to be payday. The PEO will do all the calculations and record-keeping for you.
Employee Benefits
The PEO can provide your company with a highly cost-effective employee benefit program. They are able to offer these services to you at a reduced price because they combine the employees of all the businesses they are representing together, allowing them to negotiate for less expensive coverage costs, that can include life insurance, medical, dental, and more. The PEO will be responsible for managing the enrolment of your employees, do the negotiating with insurance providers and handling any required legal obligations.
Legal Support
The PEO can offer assistance with a variety of employment legal issues, which is especially helpful when you are maintaining operations in a foreign country. The PEO will overcome the language barrier for you and are well versed in their nation’s employment laws. If there are any legal disputes regarding issues such as payroll, overtime, or paid time off they will handle it for you.
Engaging the services of a PEO can make a big difference for your growing business!
