You may have heard a lot about professional employer organisations (PEO) lately, but when should you start using a PEO for your company?
Historically, the role of the human resource department has been to focus on employing staff and managing their contracts. The increasing number of millennium workers entering the employment pool is now changing the role and responsibility of the human resource department, not only are they looking for a competitive salary, but a full employment package including a pension and employment benefits. Partnering with a PEO provider can propel your business onto the next level, placing you ahead of your competition.
Attracting the best talent is a vital challenge for any company in order to move forward as a business. If you aren’t able to attract the top talent in your field, you’ll find yourself falling behind your competitors. It may sound easy, but if you don’t have a human resource team big enough, you will struggle to bring the best talent on board. As explained in the introduction, employees are now looking for a full employment package, extending the role of human resource and requiring additional staff members.
Fortunately for business owners, there are options available such as partnering with a PEO provider who gives you access to a range of employment benefits, to help you offer a full and attractive employment package to make you stand out from the crowd.
Does your business have a human resource team that is capable of handling a HR emergency? If an employee harassment complaint was to land on your desk tomorrow morning, do you have full confidence that it will be dealt with adequately and legally? For a lot of you reading this, the answer will more than likely be ‘no’, which can leave you in a challenging situation if this event occurs. The simplest solution might be to outsource the complaint to a HR specialist, who in return will handle the case, charging you a significant sum along the way. Partnering with a PEO provider would ensure you have an HR legal hotline to call in the case of an emergency, offering you professional and reliable advice, whenever you need it. If you are not prepared for a HR emergency, then it’s time for your company to consider a PEO.
Hiring and firing employees includes a lot of administrative tasks which can prove extremely time consuming. The larger your business grows, the more employees you will hire which means more paperwork and more time taken up with HR administrative tasks such as setting up payroll and auto enrolment for new employees. A PEO can help cut down on these admin tasks by performing day-to-day HR duties such as payroll, benefits and pensions, leaving you with more free time to focus on running and growing your business.
The average cost of replacing an employee currently sits at just under £14,000 for a ‘lower-end’ job and can rise to as much as £50,000 for a senior role within a company. These figures may seem unrealistic, however, it’s not only the cost to replace the staff member you need to consider, but also the loss in productivity for your organisation. These mammoth figures show that it has never been more important to retain your staff members, ensuring that all employees are fulfilled and happy. If businesses are able to support employees who are facing difficult or challenging times, then hopefully they will contribute fully to the wider success of the business.
There is never a ‘right time’ for your business to partner with a PEO. The benefits they can offer your business and your employees are now becoming necessary for every company looking to survive in the 21st century. The purchasing power they have allows them to access employment benefits far cheaper than any business could, and pass on these savings to clients.
Making the switch to a PEO provider may sound like a complicated project, but with Hive360, we ensure that this is an efficient and simple process with support being offered throughout.
Contact us today by calling 0121 661 4851 or fill out our contact form online.
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