If you’re a small business owner, you know that there are a million things to think about and taking care of your HR is usually not at the top of the list. This is where a Professional Employer Organization or PEO can help. A PEO can be an extension of your team, taking care of all the HR tasks that you don’t have time for so that you can focus on running your business. But what exactly is a PEO and how can it help your business? Let’s take a closer look at 5 benefits of a PEO for small businesses.

What Is a PEO?

A professional employer organization (PEO) is a firm that provides a variety of human resource services to businesses in exchange for a fee. PEOs typically handle payroll, benefits, workers’ compensation, and compliance with employment-related laws. They may also provide training and development programs, as well as recruitment and performance management services.

While PEOs have been around for several decades, they have become increasingly popular in recent years, especially among small businesses. However, it should be noted that if you are considering using a PEO to manage your HR needs, it is important to carefully research different providers to find one that is a good fit for your business, as each PEO has a different model and set of services.

Advantages of a PEO for Small Businesses

1. Get Better Employee Benefits Plans

As a small business owner, you may not have the same buying power as larger companies when it comes to negotiating employee benefits plans. However, when you work with a PEO, you’ll be able to take advantage of the PEO’s buying power to get better rates on health insurance, workers’ compensation insurance, and other employee benefits plans. In addition, a PEO can help you tailor your employee benefits package to meet the specific needs of your company and your employees. This can in turn help businesses create a positive work environment and attract and retain talent.

2. Payroll Processing Services

A PEO can also save you time and money on payroll processing by handling all of the paperwork and tax filing associated with payroll. In addition, a PEO can provide employees with direct deposit services and online access to their pay stubs and W-2 forms. This can save you valuable time that you can then use to focus on growing your business.

3. Human Resources Management Services

Perhaps one of the most valuable services that a PEO can provide is human resources management. A PEO can help you with all aspects of human resources management, from hiring and onboarding new employees to managing employee performance reviews and terminations. In addition, a PEO can help you develop employee handbooks and policies that are compliant with state and federal regulations. This can free up your time so that you can focus on growing your business.

4. Access to HR Expertise and Knowledge

Another benefit of partnering with a PEO is that it can give you access to experienced professionals who can provide guidance and support when it comes to HR management. If you’re not sure how to handle a particular issue, or if you need help developing an HR strategy, working with a PEO gives you access to the resources and expertise you need. This peace of mind can be invaluable for small business owners who might not have the in-house expertise to deal with HR issues effectively.

5. Avoid Compliance Issues

PEOs can be a great resource for small businesses when it comes to compliance with employment laws. PEOs keep up with all of the latest changes and requirements, so businesses can focus on their core activities. In addition, PEOs can provide small businesses with the resources and support they need to ensure compliance. This can save businesses a lot of time and money that would otherwise be spent on compliance-related activities.

Looking to partner with a PEO?

Partnering up with a Professional Employer Organization (PEO) can provide many benefits for small businesses, including access to better employee benefit plans, payroll processing services, and human resources management services. At the same time, it is important that you find a trusted and reputable PEO to ensure that you can save time and money while still providing top-notch benefits for your employees.

Based in Hong Kong, FastLane HR is a professional payroll and HR outsourcing company that provides a comprehensive suite of PEO services that can effectively tackle all of your human resources needs, whether it’s managing your payroll administration or helping you navigate compliance issues. Get in touch with FastLane HR today and let’s discuss how we can help your small business thrive.