Maximizing Productivity: The Role of PEO Services in Employee Management

Employee management is constantly evolving within the field of human resources. This matters more than ever for both job seekers who want good pay and flexible work environments and employers who want to attract and retain top talent. Unlike big companies, many small and mid-sized businesses can't handle all the complex aspects of employee management— and that's not necessarily a bad thing. Specialization and focusing on you business's core competencies allows you company to stay nimble, productive, and efficient. To do this successfully, especially when it comes to managing employees, businesses need reliable partners. That's where professional employer organizations (PEOs) come into play—they help businesses effectively manage their employees. 

Take a closer look at the seven core functions that PEOs provide for growing SMBs to see where they fit into your business growth plans.  

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Comprehensive HR Support 

PEOs provide services under the broad umbrellas of employee management and human resources. That comprehensive HR category includes key business operations such as: 

  • Payroll processes 
  • Administering employee benefits 
  • Ensuring compliance with regulations and local, state, and federal requirements  

These tasks require a lot of specialization, and that would mean hiring a large team of very specialized individuals to manage each of these tasks (and smaller but no less essential tasks in each category). PEOs provide all these services under one plan. 

Access to Top Talent 

When you try to manage all your HR services in-house, you're most likely to run into some problems. For example, some roles require certifications, and niche credentials, but these professionals are expensive to hire—especially if you don't need them full-time. It gets tricky because you need experts for different things. 

By working with PEOs, you get access to a team of professionals, each one focused on there area of expertise. You can have them help with your work whenever you need, whether it's forty hours a week or just few hours. Having a flexible service that you can pull team members in and out based on what your business needs is easier on your budget and keeps you goal focused. 

Employee Benefits Administration 

Good employee benefits are one of the best ways to attract and retain talent in your industry. But employee benefits administration is a tightly regulated area that requires ongoing compliance with changing laws and regulatory requirements. It can be a tricky burden for any organization.

With a PEO, you can offload all the tasks of finding, negotiating, and managing all the elements of health care plans, retirement benefits, and other benefits options. The result is happier employees, but it's also more productive employees focusing on your business's core competencies. 

Risk Management and Compliance 

As we mentioned briefly earlier, HR functions are governed by a complex tapestry of OSHA regulations, state and local labor laws, and employment regulations. A single misstep can put your organization at risk. By working with a PEO, you can proactively manage these risks and liabilities by: 

  • Having regular internal audits that ensure your business practices are up to code 
  • Flagging and resolving any potential violations (or prospective violations of upcoming legal changes) 
  • Consulting with HR professionals who can minimize the risk of penalties, claims, lawsuits 
  • Staying on top of employee education and signage requirements by having a third party provide all the materials

Efficient Payroll Processing 

Payroll processing consumes a lot of business hours, with even the smallest business owners spending at least five hours per pay period on the job. This takes away from your other obligations. It also doesn't guarantee smooth and efficient payroll, as you may have to make do with highly manual processes.

Through a PEO, you can outsource all your payroll functions. Gain access to a team of professionals, enterprise-level software, and steady payroll operations that provide a high degree of employee satisfaction. 

Focus on Core Business Functions 

The biggest function of PEOs is what they give back to the organizations that use them. Instead of dedicating a hefty amount of work hours to administrative and support tasks, your entire team can stay focused on building revenue streams and providing the products or services at the heart of your business. You don't have to dedicate time to hiring HR professionals, increasing the size of your payroll department as your company grows, or deciding where to spend your hiring budget. Instead, all your efforts can stay focused on your revenue engine. 

Scalability and Flexibility

When organizations keep everything in-house, they can't grow at scale; they may not even be able to grow linearly. New sales staff or field professionals mean hiring a growing number of HR professionals and payroll staff, which means hiring more administrative staff and so on.

By working with a PEO, you can scale growth and keep your workforce oriented toward revenue. PEOs can also scale service up or down based on your business's seasonal or in-the-moment needs. 

Make PEO Services Part of Your Employee Management Strategy 

If you want to prioritize business productivity in 2024, think on the structural level. Keep your core competencies in-house and outsource all the other tasks of keeping your business running, including employee management. Through this approach, you build in-house specialization and benefit from the specialization of the other companies, all while keeping your own workforce more mobile and focused on business goals.  

At PRO Resources, we provide comprehensive HR services, benefits administration, payroll, and more. Reach out today to see how we can set the stage for more productive business growth and employee satisfaction. 


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