HR outsourcing

How does outsourcing compliance and risk management help employers?

Professional employer organizations can be a wonderful way for businesses large and small to handle and strengthen their human resources capabilities, but many organizations new to the industry don’t know what to expect from their PEO partners. As one of the nation’s leading PEOs, CoAdvantage is no stranger to working with businesses who have fallen for a few myths. Here we correct some of the biggest misconceptions we encounter.

Myth #1: PEOs are only for big businesses.

Professional Employer Organizations (PEOs) are for more than just employees. PEOs are designed to get employers out of the employer business, so that business owners and executives can focus their energies entirely on core, revenue-generating activities. But with the emphasis on transactional and legal responsibilities, it’s sometimes easy to forget the business outcomes that PEOs can help produce. 

We recently wrote about the impacts of HR outsourcing (HRO) on employees, noting that employee turnover was 10 to 14 percentage points lower for companies that used professional employer organization (PEO) services versus comparable companies that did not. That strongly suggests that the HRO relationship benefits employees, but do employees understand the value of what they’re receiving?
How many companies outsource benefits-related functions? Short answer: more and more. Two recent studies both demonstrate this dramatically. The third annual Guardian Workplace Benefits Study found that one-third of employers now outsource all of their benefits administration, a 65% increase since 2013.
Outsourcing can feel like diving into the deep end. Prior to the plunge, staring down the prospect of outsourcing can be daunting. And if you’ve ever hesitated about outsourcing, you’re not alone.
Wholesale Services refers to sales of an enormous range of durable products, from professional and commercial equipment through motor vehicles and parts through electrical goods. It's a gargantuan industry that deals in $6 trillion in annual sales and, remarkably, is one poised for substantial growth.
Would you benefit from outsourcing at least some, if not all, of your HR activities? Definitely. Even if you simply offload the transactional requirements to a third-party, you’ll save time, money and stress. But that’s not what we want to talk about today. In this article, we’re assuming you already do, or are considering, outsourcing; and you’re curious how to make it work in practice. Here are three pieces of advice for in-house HR professionals to better work with an outsourced team.
Fundamentally, a professional employer organization, or PEO, handles HR and employee issues while business owners focus on their core expertise and revenue-generating activities. To that end, a PEO’s service model extends throughout the entire employee lifecycle from start-to-finish. Here’s how.
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