This technology age is creating self-service solutions at the speed of light. Many small business owners, in an effort to save time and money, are leaning more and more on sites and apps that allow them to manage things themselves with tools that assist rather than take over, like Zenefits.
Zenefits promises to make HR life easier for a small business by offering a seamless way to buy and manage their benefits. If that is all you need, then the argument stands; Zenefits is a worthwhile offering. But what about everything else?
What Does Zenefits Actually Provide?
Zenefits allows their customers a free, slick, efficient cloud based solution by which they can manage their benefits. This allows the small business owner a one-stop way to manage their benefits so they spend more on their business. Sound good?
They also provide a way for their customers to take advantage of pre-negotiated rates with insurance providers which they can procure from the Zenefits solution. If you need help with insurance brokerage in finding a great rate for benefits then Zenefits may be a good company to work with.
Getting efficient benefits management and good rates on insurance, what is not to love? For starters, state governments didn’t like Zenefits selling insurance in their states without a license to do so. Zenefits is currently under fire in a number of states for failing to follow their laws regarding licensure and insurance brokering. Their new CEO is making amends to these government entities and they are taking steps to be able to sell insurance legally in all 50 states but buyer beware with this development.
Find out first if Zenefits is allowed to sell insurance in your state first. Otherwise all you are getting is a site to manage your benefits on and let’s face it, lots of companies offer that. For many, an HRIS is not enough of a tool to really make life easier for the small business owner.
What Does A PEO Provide That Zenefits Can’t?
Most PEOs also offer a cloud-based HRIS to manage all of your benefits on. It also manages employee onboarding and offboarding, training, benefits and all kinds of other things a professional HR manager would need to run a successful HR department. PEOs offer a much more robust tool in this arena than Zenefits is offering.
Great Savings On Better Benefits: Under Zenefits you get to choose from a variety of insurance providers to select the right one for you that best fits out of their offering. PEOs are able to offer enterprise level benefits to the small business owner. This means that the rates that a large corporation can take advantage of are offered to you.
A Full Suite Of Benefits Packages: If you have always wanted to offer things like retirement and employee training options, PEOs provide these to the small business like no one else can. For many entrepreneurs, these offerings are just simply out of their price range but not so when they work with a PEO. Zenefits does not offer this.
Limited Legal Protection: No one likes to face a lawsuit. For the small business owner, judgement against them can cost them everything they have worked for. PEOs offer EPLI insurance, worker’s compensation and guidance on how to stay compliant with state and federal employment law. Zenefits takes no legal responsibility for the success running of your business. Since a PEO co-employs your employees, they have a stake in making sure you are operating in legal compliance.
Full Payroll Outsourcing: If there is one time consuming task that most small business owners which they could get off their plate it is payroll. There are plenty of them who use payroll outsourcing like Paychex but those services don’t provide anything more outside of that. Zenefits does not provide payroll outsourcing at all. PEOs are a much better total solution for all things Human Resources, including payroll management and tax filings.
How A PEO Broker Helps You Negotiate The PEO Landscape
If you have done any research on PEOs at all then you have quickly figured out that there are many choices. Some big, some small but all offering small business utopia when it comes to HR outsourcing. Which one is right for you? A PEO broker like PEO Spectrum knows the business, understands the needs of a small business depending on goals and size and can help you work with just the right ones for you. They can even help you with the contract negotiation process. If security in decision making is what you are looking for, a PEO broker is what you need to get there.
If the human end of business growth is wearing you down and costing you much, talk to a PEO broker about what a PEO can do for you. Let real people help you find the right human resources solutions.