As a business owner, you need to focus on the long-term success of your company. Unfortunately, many business owners get bogged down in administration tasks. In fact, the average business owner spends 36% of their entire work week on admin tasks. This is especially true of HR-related issues.
By partnering with a PEO, you can offload many of these admin tasks, freeing up valuable time and resources. Instead of getting caught up in paperwork and HR headaches, you can dedicate your attention to growing your business, developing new strategies, and staying ahead of the competition.
The Administrative Burdens a PEO Can Take Off Your Plate
Payroll takes a lot of time. Small and medium-sized business (SMB) owners can spend upwards of 5 hours each payroll period simply calculating payroll tax. PEOs manage all aspects of payroll processing, including calculating wages, handling taxes, and processing deductions. By outsourcing payroll to a PEO, businesses save a considerable amount of time while minimizing errors that can occur with in-house payroll management. Efficient payroll processing boosts company productivity and reduces the risk of compliance issues.
Benefits are an important part of any compensation package. They are essential for reducing turnover and increasing employee satisfaction. However, managing employee benefits is time-consuming and expensive. PEOs help handle benefits admin by negotiating better and leveraging their large employee pool to get better rates. This gives SMBs access to better benefits at lower costs, improving employee satisfaction and saving time.
Compliance with labor laws is crucial for avoiding penalties and legal disputes.PEOs ensure that businesses remain compliant with changing regulations by staying up to date with legal requirements. They also handle all the compliance paperwork and provide expert guidance on any regulatory frameworks that apply to your business. PEO can also help mitigate the risk of lawsuits and fines, which can be financially devastating for a small business. On average, it costs employers around $75,000 to work with an employment lawyer to settle a claim before it reaches trial. If the case progresses to court, the expenses can skyrocket, easily exceeding $125,000.
Their expertise also streamlines employee onboarding, ensuring new hires are properly trained, paperwork is handled properly, and employees are integrated into the company quickly. Overall, partnering with a PEO often results in a faster hiring process, reduced administrative overhead, and better employee retention.
Focusing on Strategic Initiatives: What Can You Accomplish?
Without the burden of HR administration, you now have the chance to focus on more strategic initiatives. For example, you can find ways to be more innovative within your industry. Innovation enables growth and gives you a competitive advantage. Companies that prioritize innovation generally outperform their peers.
With less time spent on administrative functions, you can also dedicate more time to developing talent. Shifting your focus from tactical tasks to strategic HR initiatives can significantly improve retention rates and employee satisfaction. Which is a good thing, considering companies with highly engaged employees have 59% less turnover than those with disengaged employees.
73% of customers say customer experience is an important factor in their purchasing decision. Free from HR admin tasks, you can work on initiatives to improve your customer experience and increase customer loyalty. With more strategic bandwidth, you can also identify new market opportunities and develop new products, positioning yourself for long-term growth.
Partnering with a PEO is more than outsourcing administrative tasks. It’s about reclaiming the time and energy you need to focus on what matters – growing your business. By offloading complex and time-consuming responsibilities, you free up resources to invest in strategic initiatives that drive long-term success. In short, a PEO saves you time, reduces costs, and minimizes risk. Positioning you perfectly for sustainable growth.
Ready to unlock new opportunities and accelerate your business’s success? Contact us for your HR Review and Needs Analysis today!