Advantages of Using a PEO (adapted from napeo.org)
Human resource outsourcing through the use of PEOs is a strategic move to improve the quality and flexibility
of your workforce, while improving your organization’s ability to accommodate change and
stay ahead of market forces. Today, many companies are outsourcing their human resource functions.
For Businesses Owners and Executives, the PEO:
- Provides experienced professionals in HR, benefits, payroll, risk management and other aspects of employee administration and development
- Assumes certain employment related liabilities
- Delivers professional assistance with employment related regulatory compliance (ADA, payroll, OSHA, EEOC, FMLA, FSLA etc.)
- Provides secure Internet access to payroll, benefits and personnel data
- Provides access to professional HR guidance and materials
- Manages employment and risk management related claims
- Supplies employee handbooks, policies, procedures and practices
- Improves cost control
- Delivers access to better benefits
- Helps reduce employee turnover
- Provides quality benefits to attract and retain the best employees
- Gives you the opportunity to grow your business faster
For Employees, the PEO:
- Provides access to comprehensive benefits often previously unavailable (401(k), Section 125 plan, comprehensive insurance benefits, Flexible Spending Plan and other voluntary plans)
- Delivers on-time and accurate payroll
- Provides professional assistance with employment-related issues
- Supplies easy-to-read employee handbooks, policies, procedures and practices
- Enables more employees to receive statutory protection
- Improves communication among and between employees
- Offers up-to-date information on regulatory compliance
- Processes claims efficiently and responsively
- Enables employees who move from one PEO client to another to avoid loss of benefits eligibility
- Provides improved access to payroll information, benefits, personnel data, vacation and sick time accrual, and specialized reports
- May offer credit union membership and banking privileges
- May offer exclusive employee discounts on travel, entertainment and services