5 Ways a PEO Provides Your Business with More Robust Employee Benefits Package
Busy business owners have enough on their plates without being overwhelmed with paperwork and administrative tasks. The cost of hiring more in-house workers to take over additional responsibilities such as improving employee benefits is more than many employers can afford.
This is why businesses are partnering with a PEO for employee benefits and other tasks. The PEO industry has steadily experienced an 8% annual increase in size over the last couple of years, aside from the pandemic year when most industries slowed.
An important part of employee compensation is a benefits package, so here's how PEO benefit services can get you the most robust package at a more affordable price.
The Importance of Providing Employee Benefits
The importance of having great employee benefits cannot be underestimated anymore. Some businesses have gotten away with the bare minimum in the past, but that will no longer be the case in today's job market. Workers expect more from their employers now.
Research reveals that almost half (49%) of workers say they will quit and look for a new job if they're dissatisfied or confused by what is offered in their benefits package. The same report adds that most (78%) employees will stay with a company because of its benefits.
So, what are the positive effects of giving employees first-rate benefits?
Aside from the obvious — giving them what they want to keep them happy —stellar benefits also offer the following advantages to both employer and employee:
- Better Health — healthier employees mean fewer absences, more productivity for employers, and fewer scary health risks for employees.
- Job Satisfaction — happy employees are nearly 13% more productive for employers and enjoy going to work (after all, if you love what you do, you'll never work a day in your life!).
- More Work/Life Balance — allows employees to rejuvenate away from work and do other things they love. For employers, this means a more refreshed and ready-to-work staff.
- Reduces Burnout — time off and other benefits allow employees to step away from work and come back with fresh eyes. This will reduce preventable mistakes and keep employee morale up.
What is a PEO?
A PEO, also known as a professional employer organization, partners with an employer to assist with various employee-related tasks and responsibilities. This, in turn, allows the employer to optimize their HR team and staff while saving on the costs of hiring additional HR employees.
The most significant advantage a business gets from partnering with a PEO is freeing up HR's time for more important matters such as ensuring employees are fairly compensated, happy with their employee benefits, and the company culture remains a positive environment for all.
What kinds of administrative tasks does a PEO take off a business owner's plate? All the ones that make the most significant difference! For instance, some comprehensive HR solutions offered by PEOs include helping with:
- Employee Benefits & Records
- Company Policies.
- Hiring, Training, Onboarding, etc
- Company Culture, and More
Working with a PEO to Provide Improved Employee Benefits
As Richard Branson once said, "If you take care of your employees, they will take care of the clients." This starts with learning how to improve employee benefits! Here's what working with a PEO can do for your benefit plans.
PEOs Provide You With Cost-Effective Benefits Plans
Having exceptional employee benefits is no longer an option but an expectation if you want to keep and attract employees in today's market. A great example of a cost-effective benefits plan is PRO Resources' Complete 401(k) Retirement Savings Plan. Not only is the plan low-to-zero cost to you, but it's also low costs for employee participants.
When you partner with a PEO on your benefits plan, you gain access to some of the best savings. This is because your PEO will co-sponsor the program and reduce plan costs by pooling employees from multiple companies they're partnered with (known as a multiple employer plan). PEO-sponsored plans will be more cost-effective, reduce liability on your end, ensure you comply, and keep your company at a competitive advantage.
PEOs Handle Insurance Premiums and Claims Management — Especially Workers' Comp Insurance Premiums
Not only are PEOs viewed as less of a risk than working directly with businesses on insurance premiums (which is why the cost is more desirable!), but your PEO will be the plan administrator. This means the PEO will handle all the liability issues, maintain and file reports and records, manage claims, and more.
PEOs Manage Retirement Plans
Just as health insurance became an unspoken requirement many years ago, retirement plans have also recently. More than 90% of employees participate in the retirement plans available by their employers. With PRO Resources, you can get an up-to-date plan that's easy to navigate and affordable. Our 401 (k) plan is equipped with a solid plan design and investment service and plans that are among the best in the industry.
PEOs Provide Peace of Mind and Fewer Tasks
Outsourcing HR tasks with a PEO frees up your time, so you can do what you love most — growing your business! You can also rely on a PEO to keep your company compliant with all the local/federal laws and regulations and assist you with paperwork, disclosures, reports, and other administrative burdens that may keep you up at night. This way, you focus on running your company and improving the workplace with peace of mind.
Now's the Time to Upgrade Your Employee Benefits Package With a PEO
There's no better time than now to upgrade your employee benefits package and start improving employee retention right away. Your employees are the foundation of all the success your company has earned and will earn. Reward them with stellar benefits! Even better, do it with the help of a trusted PEO like PRO Resources to stay competitive without breaking the bank.