When business owners partner with a professional employer organization (PEO), they can focus on business building while trusting the PEO to handle certain HR and employee issues. To that end, a PEO’s service model can extend across the entire employee lifecycle – from before they even start until after they’ve left. Here’s how.
1: Recruitment and Hiring
Your people are the heart of your organization, but with unemployment hitting historic lows and a declining labor force participation rate, recruitment and hiring has never been more challenging. Eighty-one percent of respondents to the Randstad Sourceright 2017 Talent Trends report says that talent scarcity has negatively affected their business (a 9-point increase from 2016). A PEO can handle specific aspects of recruitment or can handle the entire effort, from beginning to end, often deploying resources and utilizing recruitment channels that might not be easily available to small and midsize organizations on their own.
2: Onboarding and Training
Seventy-nine percent of companies do not provide formal training to their employees. Instead, they use haphazard approaches that create inconsistencies in employee performance and knowledgeability. Further, inadequate training can reduce employee retention if employees don’t feel they are receiving the career development they want and need. A PEO can work with companies to help get employees up to speed quickly and keep them performing at their best with ongoing training and development options, while satisfying applicable regulatory requirements.
3: Payroll and Benefits
Payroll is the bread-and-butter of both employer and PEO. For the employer, payroll and benefits are critical to keeping employees happy and productive. Unfortunately, common payroll errors can expose employers to legal problems as well as cause headaches for employees. Similarly, good benefits can pay dividends in attracting and retaining workers. MetLife’s 15th Annual U.S. Employee Benefit Trends Study reports that benefits have a quantifiable impact on the likelihood of employees staying or leaving. For example, 61% of employees would be more likely to accept a job with a new employer that offers health and wellbeing benefits if their current employer does not. PEOs make enterprise-grade payroll services and benefit offerings available to organizations of all sizes.
From before you even meet the job candidate until the day they leave the company, federal, state and local laws force employers to meet certain standards of behavior and treatment. Aside from the cost and headache of compliance, the host of workplace laws and the alphabet soup of regulatory bodies can confuse even the most conscientious of employers. A PEO can help stay on top of all applicable compliance issues for you.
5: Separation and Retirement
Ultimately, all employees leave – whether it’s through a layoff, retirement, termination, or quitting – and employers must find a way to handle the separation that is both legally compliant and preserves the business’s ability to continue functioning. From compliance issues to succession planning, PEOs can help employers to handle the final stage of the employee lifecycle.
CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about our ability to create a strategic HR function in your business that drives business growth potential, contact us today.