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Ultimate Guide to the Value a PEO Brings to Your Business

It may seem odd for a human resource executive to drive the charge to outsource employee benefit management services to a Professional Employer Organization (PEO), but when the value of working together outweighs going at it alone, there really isn’t much of a business case against it.

There are numerous ways a PEO can support existing HR efforts, even if they already have an HR person or even a small HR department.

Enhance NOT Replace
No one can be an expert on everything, every time. The HR field is vast and covers so many diverse topics that it would be virtually impossible to know it all. A PEO can fill in the knowledge gaps, making you look like the star you are. Perhaps they can take the lead on compliance issues, an area of HR that is constantly evolving and shifting, making it very hard to keep up with and a full-time job in itself. From keeping track of and understanding Obamacare updates to updating the employee handbook, an off-site HR pro can handle these administrative tasks to free you up to focus on higher-value tasks such as long-term strategic planning. Businesses that are PEO clients do not need to spend as much time dealing with “people issues,” allowing more time to focus on their core businesses, which enables them to position their themselves to be competitive and successful.

Dock Your Data
Storing employee data is a big undertaking. Whether you keep it in a filing cabinet or have a computer-based system, you need to balance having that data accessible in order to run analytics or otherwise reference useful information with having the data appropriately protected. Building out a system to store such data can be a huge undertaking – either you’re doing it yourself, or you’re hiring a firm to take the reins for you. PEOs like Abel HR typically offer information management systems tailored to fit the unique needs of your company and to compile and analyze the information that matters most to you. Further, all those paper files disappear and the user system is password protected, with different levels of clearance depending on the needs of various people in your office. The best part? Help is always at hand to answer any questions about the system as and when they arise.

Optimize Your Picks
One of the biggest headaches for HR is the benefits selection process. It takes hours to identify the best offerings, even longer to negotiate the best price, and when it’s all said and done, you’re never truly convinced that you’ve hit the nail on the head. Enter the benefit management professionals at Abel HR who take all the guesswork out of finding only the best insurance programs, and at a price that you wouldn’t be able to get in the open market. Further, a PEO can go ahead and handle the whole open enrollment season for your company, including developing educational materials for your employees, answering questions, creating a system for easy enrollment, and making sure that everyone has the coverage that they need. And we don’t stop there: We’ll also follow up to make sure that the correct deductions for said benefits are coming out of payroll and compliance reporting is complete.

Training Support
As we previously mentioned, not everyone can be an expert on everything. However, when you’re an HR rep, you do need to be the expert on whatever you are training employees in. Whether it’s an IT system, workplace safety, industry-specific education, or even training on how to upskill staff, our human resource experts will have you covered.

Job security
Businesses who work with a PEO like Abel HR are proven to grow 7 to 9 percent faster, have 10 to 14 percent lower turnover, and are 50 percent less likely to go out of business, according to research by the National Association of  Professional Employment Organizations (NAPEO). Employment growth in the professional employer organization (PEO) industry is 14 times higher than the growth rate in the U.S. economy overall.

Other measures of job security include increased job satisfaction, engagement and retention, which all bring value to the company.

Have additional questions about what a PEO can offer an HR professional like yourself? Download our resource guide for more information.

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