pro·fes·sion·al em·ploy·er or·gan·i·za·tion
/prəˈfeSH(ə)n(ə)l əmˈploiər ˌôrɡənəˈzāSH(ə)n/
A professional employer organization (PEO) provides comprehensive HR solutions to small businesses. Payroll, benefits, HR, tax administration, risk management, and regulatory compliance assistance are some of the many services PEOs provide. PEOs are an important conduit of information for and about the small business community.
Contrary to what many believe, a PEO is not a staffing agency or human resource outsourcing company. Pinnacle Employee Services, as a PEO, is a trusted partner who works with you to provide streamlined solutions needed for your business and employees. Freeing you up to focus on growing your business.
- PEOs provide services to 173,000 small and mid-sized businesses, employing 4 million people.
- The PEO industry’s 173,000 clients represent 15% of all employers with 10 to 99 employees.
- There are 487 PEOs in the United States.
- The total employment represented by the PEO industry is roughly the same as the combined number of employees for Walmart (United States only), Amazon, Kroger, and Home Depot.
What does a PEO do?
Businesses today need help managing increasingly complex employee-related matters such as health benefits, workers’ compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. Imagine not having to take time out of your day to explain the nuances of health coverage, 401k options, and payroll on top of other ongoing HR needs. That’s where we step in.
When you partner with a PEO like Pinnacle Employee Services, we assume these responsibilities and provide expertise in human resources management. This allows our clients to concentrate on the operational and revenue-producing side of their operations.
PEOs deliver these services by establishing and maintaining an employer relationship with the employees at the client’s worksite and by contractually assuming certain employer rights, responsibilities, and risks.
How does it work?
A Professional Employer Organization (PEO) offers co-employment for the benefit of their clients. Co-employment is a contractual relationship, in which a business and a PEO share certain employment responsibilities to limit the liability and risk on the employer.
Make no mistake. You are still in charge! You call the shots, hire and fire when necessary. Your employees still report to you and follow your direction. When employees need questions answered in regard to their benefits, payroll, and other human resource matters they can come to us for the answers.
- The Pinnacle Employee Services contract.
- The relationship and responsibilities of your business and employees.
- Communication regarding payroll, benefits, and other human resource matters between PES and your employees.
- The shared responsibilities of PES, your business, and employees.
Why It Makes Sense for Businesses to Partner with a PEO
- 10 – 14% lower employee turnover
- Businesses are 50% more likely to stay in business
- Provides experienced professionals in HR, benefits, payroll, and risk management
- Assumes certain employment-related liabilities
- Delivers professional assistance with compliance (payroll, OSHA, EEOC)
- Provides secure Internet access to payroll, benefits, and personnel data
- Manages claims
- Supplies clear, easy-to-read and professionally written employee handbooks, policies, procedures and practices
- Improves cost control
- Delivers access to better benefits at a lower cost to the business and employees
- Provides quality benefits and recruiting assistance to attract and retain the best employees
- Provides you more time to focus on your bottom line
- Gives you the opportunity to grow your business faster.
For your Employees, a PEO…
- Provides access to comprehensive benefits often previously unavailable – 401(k), Section 125 plan, comprehensive insurance benefits
- Delivers on-time and accurate payroll
- Provides professional assistance with employment-related issues
- Supplies easy-to-read employee handbooks, policies, procedures and practices.
- Enables more employees to receive statutory protection
- Offers up-to-date information on labor regulations, workers’ rights and worksite safety.
- Processes claims efficiently and responsively
- Enables employees who move from one PEO client to another to avoid loss of eligibility for benefits
- Provides improved access to payroll information, benefits, personnel data, vacation and sick time accrual, and specialized reports
- May offer credit union membership and banking privileges
Employee Portal is now an App!
Employee Portal has always been mobile responsive, but now worksite employees and managers can access it directly through a free mobile app.
Why offer an app? Today, it’s how we expect to access the information we need most — in just one click, from our device’s home screen.
Anything a worksite employee or manager can do in Employee Portal they can do in the PrismHR app. They have full access to their HR and payroll information, whenever they need it.
- Pay stubs and history
- Time off requests
- Benefits summary
- Personal contact and employee information
- Document management
- HR support contacts
Manager functionality is also all here. Approve time-off requests, see employee details, and more.