Choosing to partner with a professional employer organization (PEO) is a great decision for your business. If you’re like most business owners who are considering a PEO, you have done a lot of research and have tons of questions and concerns.
Below, we’ve debunked four of the most common PEO myths to make your decision a little easier.
Myth #1: Hiring a PEO means I'm going to lose control of my business.
Fact: PEOs give you greater control of your business in a number of ways:
- PEOs enable you to streamline communication across HR, payroll, risk management, and benefits, and frees up more of your time to focus on revenue-generating projects.
- PEOs assign a team of HR professionals to you. The team can identify and find opportunities across back-office disciplines that can save you money and/or reduce financial risk.
- PEOs improve cashflow through economies of scale. When you partner with a PEO, you may qualify for discounted rates on some business costs and lower premiums. This gives you more cash to invest in your business.
To summarize, you call the shots. PEOs make it easier to make efficient, well-informed business decisions.
Myth #2: I will lose control over hiring and firing decisions.
Fact: Hiring and firing decisions are up to you.
When it comes to hiring, PEOs can help you write job descriptions, review applications, and train new employees. This makes the recruitment process more effective and more efficient.
If you want to fire an employee, PEOs protect you from rising unemployment taxes (should one be filed) by taking care of all the details.
In short, you improve employee recruitment and limit financial risk…at a fraction of the time it would take to do yourself.
Myth #3: PEOs supply workforce labor.
Fact: PEOs are not temporary staffing agencies. When you partner with a PEO, you and that PEO agree to a co-employer relationship.
In other words, you keep full control of your business and your employees. You make hiring and firing decisions. You are responsible for building a group that meets your company’s needs. The added benefit is that you can qualify for discounts and better insurance rates that you could not have gotten without a PEO.
Myth #4: PEOs will change my company culture for the worse.
Fact: PEOs don’t want to change your culture; they want to enhance it. If your employees like working for you now, imagine how much better it will be when they realize you’ve given them access to a Fortune 500 –level benefits package. Plus, once word gets out that your benefits are better than you competitions’, you’ll have a better chance at attracting interest from higher-quality talent.
Do you have additional questions or concerns? Let’s talk! Give us a call at 1-888-823-2084.