While there may be a lot of reasons businesses choose to outsource their HR functions with a Professional Employer Organization (PEO), these are the top five reasons startups use PEOs.
Business Process Outsourcing is a special kind of outsourcing: instead of using a contractor or agency to outsource a specific project, you outsource an entire business process, like HR. So while some of CoAdvantage's clients only use specific services - like talent acquisition - others have us take over their HR functions entirely in our capacity as a PEO (professional employer organization).
You’ve probably heard of PEOs – professional employer organizations – but you might have wondered when it’s a good idea to use one. PEOs can be a terrific resource for businesses who need an expert partner to assist in HR activities like recruiting, benefits administration, compliance, risk management, etc. In many cases, a PEO even becomes the employer of record, thereby assuming all liability for burdens like payroll taxes. In short, as writer Suzanne Lucas told The New York Times, outsourcing allows companies that don’t have the means or desire to hire in-house specialists to “gain vast resources for a relatively small amount of money.” But is it right for you? Consider these five questions.
When weighing whether to outsource all or some of your HR needs, consider these questions.
Doctors and dentists, more than most small businesses, face a steep divide between their core expertise (medicine and dentistry) and the demands of running an office and employing staff.
IT is a rapidly shifting industry, with constant advances and evolving proficiencies required.Because IT service companies mainly provide expertise, labor tends to be their largest expense category.
HRO reduces labor costs, saves business owners time and unites the right expert personnel with the right employer. It frees owners to focus on growth and cements the firm’s public reputation with stellar talent are key elements of future success.
Small businesses need an edge when competing with larger companies for top talent.
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