When it comes to keeping small businesses afloat, their owners tend to lay awake at night thinking of how to keep the continual threat of cash flow issues at bay. When you have your dreams and other people’s livelihoods at stake, that’s a pretty throat-grabbing thing to walk around with. Budgets need to be considered, and frivolous expenses are not for the smart small business owner who wants to grow. Small business health insurance is one thing that is always getting more expensive, and with fewer benefits to go with it. Perhaps you’ve heard of a PEO but figured, well, I probably can’t afford it. The truth is, if you want to grow, you can’t afford to not work with a PEO. There’s plenty of reasons why.
You might be thinking to yourself, “I have everything else covered, I just need health insurance for myself and my employees. If I work with a PEO, isn’t that just trying to swat a fly with a hammer?” On the surface, it may appear that way, but the reasons for embracing a PEO fully in your business add up to be more to your benefit than you think.
What does a PEO offer a small business anyway? Most of the time, it’s the low-cost health insurance that draws small business owners in. If you’ve been pricing small group health plans lately, you see why a PEO is a cost-effective option; small group health plans have high price tags. Even if you can afford to cover half the cost of your employees’ small group health plan premium, chances are your employees can’t afford to cover their end.
Affordable small group health plans tend to offer very little for coverage, leaving employees dissatisfied with their benefits. It doesn’t take much to get a good employee looking for a job with better benefits. Having the right benefits offerings keeps your treasured employees where they belong, working alongside you for a better future for the both of you.
What a PEO does do for a small business owner is help take a bunch of other stuff off their plate so they can get to the business of growing their business instead of just managing it. If you want to grow, you need to find the time to do it. Growth takes attention, planning, strategy, and execution. You can’t do that if you are your own HR, Risk and Safety, and Payroll departments. It’s a fact you didn’t start your own business so you could sit behind a desk and do everything that needs doing to have employees work for you. Why spend all your time on it now? PEOs do the jobs you don’t need to do when it comes to managing employees and staying compliant with employment law and payroll taxes.
When you work with a PEO, you sign up for the confidence you need to grow. Knowing your company is protected from all aspects of employment risk is reason enough for a lot of small business owners to want to work with a PEO.
Small business owners always think they have HR Management down until trouble comes. Things like sexual harassment, immigration status, tax compliance, state and federal employment law, and work-related accidents are all genuine issues that small business owners should take seriously. The trouble lies in knowing what to do to avoid having legal problems with all of the above before they happen.
PEOs work with small business owners to give them what they need to protect themselves from legal disaster. They work hard to keep you protected from all of these woes, so you don’t have to wonder if you are doing the right thing. Not having to deal with costly employment lawsuits and settlements that could potentially cost you your business is another valid reason to work with a PEO.
We’ve covered all of the real world reasons to work with a PEO. Now, how do you find the right one for you? A simple Internet search will reveal hundreds of choices. Is anyone of the PEOs on the first page of results any different from the other? What your growth plans are for the future of your small business, what you want to offer for benefits, and how you’d like to be billed are just a few questions a good PEO Broker will ask you before they direct you to the choices that best fit your needs.
A PEO Broker like PEO Spectrum even has a few questions for you about finding the right PEO that you might not have even thought of yet. Understanding your needs and what the PEO industry can offer you will help you avoid the regret of working with the wrong PEO from the start. If you want to understand more about the PEO industry and what a PEO can do for you, contact us today.
If you’d like to find out more about how PEOs can help you provide great benefits and payroll management at less than you are paying now, contact us today for a free consultation.
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