For many small businesses, finding a reasonable solution for employee benefits is a burden they share. An entrepreneur needs to offer something solid in an effort to attract the talent they need to woo away from their larger competitors. This is no easy feat, as budgets can be very small in the beginning. Offering a big benefits package seems out of reach for most. The shimmer of offering stock options when the company goes public in place of great benefits has long since faded. The promise of being a future millionaire is great, but what about now? Does the cost of PEO services mean betterÂ benefits and what savings is there to be had, if any?
When the subject of the cost of PEO services come up, assuming that the small business owner knows what a PEO service is, the rebuttal usually sounds like something to the effect that the PEO costs incurred in trying to save on employee benefits ends up just washing out anything there was to be monetarily gained. That would be a likely assumption, but is it true?
Cost of PEO Services And Employee Benefits Savings
There is usually more anxiety around losing control of employees in your business, but it ends up being cloaked in the objection of âexpensive.â There is no need to lose a minuteâs worth of sleep over the big bad PEO taking over your company and rendering you obsolete in managing your own employees. The only thing you pay for in the cost of PEO services is the relief that you donât have to be your own HR Department any more. No one is hiring or firing for you and your PEO services wonât make changes to your plans without you knowing.
When people say, âitâs not about the moneyâŚ,â be assured it almost always is. So when an entrepreneur says they want to know about PEO costs, itâs because they are anticipating having to pay extra for the convenience of not having to do their own HR management any more.
Naturally, one would assume that is the case. The reality is better than imagination for once when it comes to PEO services. A PEO service is able to provide the savings in benefits that it can because of the volume that they purchase from their providers. This is why a large corporation is able to offer the kinds of benefits that they do as well. Just like anything else, the cost of 10 widgets versus 10,000 widgets is substantial. This is how you save on benefits with a PEO service.
The fees incurred in providing your services do not wash out your savings. Fortunately, the PEO costs for HR management are either per employee or based on a percentage of your payroll. Either way, you are able to enjoy a much more substantial savings that you would even going through a wholesaler who provides benefits to small businesses.
Benefits Of Using A PEO Service That Are Well Worth The Money
Aside from the employee benefits savings, there are many benefits for a small business using a PEO service that are not financial. Because a PEO co-employs, they are also responsible for keeping your business compliant with HR and Employment Law. Many small businesses owners are under educated on current employment laws, simply because they are too busy working in their business to keep on top of ever-changing laws.
Instead of trying to keep up with Employment Law on your own, your PEO service works alongside you on employment issues so you donât have to. Payroll management is also another lifesaving aspect that factors in the PEO cost. A good amount of small businesses use payroll services for payroll management. A PEO service is payroll and HR management all in one. If you are paying for payroll services already, why not add HR management and let a PEO handle it all?
All PEO Services Are Not The Same
With over 700 PEO services in the marketplace in the United States, there is a lot of choice. There are different PEO service recommendations based on the individual company and its needs. Not all PEOs fit every company scenario. It is important to know which ones are best suited for your company in order for the cost ofÂ PEO services to be a benefit to your organization.
A PEO broker will listen to your needs and help you make the right choice for your company. A PEO comparison is the best way to know what your options are and narrow down the choice to just focus on the best ones for you.
With savings and convenience all to be had, it doesnât cost anything to find out if a PEO service is the right move for your organization. A PEO broker typically doesnât charge for their services. Your insurance agent doesnât charge you for their services do they? A PEO broker is the same way. Find out now if a PEO service is for you and stop worrying about spending your budget on services.