Considering employee leasing company? Well, before that you need to know a lot about PEOs.
Hiring an employee is a huge dedication for any business or organization. Whether an employer is looking to fill a part-time or full-time position, it requires time and some monetary investments to make, like recruitment, interviewing, training, payroll taxes and benefits administration.
When we talk about startups and small businesses, the hiring process can stretch a company’s limited budget and might take away valuable time. But as business expands, the need for additional help becomes more pressing. So instead of going through the inconvenience of in-house hiring, there are some companies turning to professional employer organizations (PEOs) so as to meet their staffing needs and requirements.
Basically, a PEO is a firm that provides businesses with outsourced professionals and eliminating extensive and time-consuming elements involved in regular hiring. Employees leased out through a PEO report to the client company for their quotidian tasks, but claim the PEO as their legal employer on their tax forms. And this method of employment is called co-employment.
Types of Services a PEO provides
A professional employer organization provides its clients with several outsourced human resource functions. Well these include recruiting, payroll, tax compliance, health and life insurance, employee training, attendance and time-keeping. Not all PEOs provide you each of the above services, but most provide the majority of them.
Things to Look for in a PEO
Every PEO is different, and may or may not provide all the services you require as per your business requirements. When searching a firm to handle your human resources, make sure that you understand exactly what the company offers to ensure that it keeps up with your requirements.
Choosing a PEO is like buying a car as it’s you who has to decide the features you must have and the features you are actually looking for. Businesses or organizations considering the PEO option must identify their business requirements and ask the right questions so as to make sure that they will get the services they require from a prospective partner.
Another important factor that you need to consider is the market which your PEO caters. Different states and countries need different certifications for PEOs, so if your business operates across international boundaries, make sure that your PEO can accommodate all your needs. Apart from it, PEOs with flexible options and extensive experience are usually the best choice for your business requirements. So before you jump on to your final decision, do not forget to ask the firm whether it has worked with clients in your specific industry vertical before, as this could prove to be the determining factor between two potential qualified PEOs.
Today, employee leasing has become a popular choice for owners of small and medium sized businesses who look to aim on the business and not on the administrative burdens. So if you think employee leasing might be right for your business, choose the best employee leasing company for all your business needs and requirements.