If you are a small company with more than ten employees but with less 100 employees, and find yourself handling HR related issues for more than five hours a day, you might be the right candidate to co-partner with a professional employer organization (PEO).
PEO’s are the best for running your small business for better time and cost efficiencies opportunities. If you’re looking for best PEO companies Minnesota, you can join Digital Exits and get started right away for payroll and tax processing, compliance assistance among other critical HR roles.
Why Outsource HR?
Many benefits are tied to outsourcing a third party to run the day to day human resource tasks and functions. Here are a few of them:
- Payroll services – a PEO will manage staff payroll services efficiently through automated processes.
- Law compliance– a PEO shares the legal responsibilities of the employer. Also, they will help you standardize procedures for HR-related legal issues like safety, employee discrimination, and labor law compliance.
- Retirement planning – Your employees will benefit from better retirement plans
- Health care benefits – PEO can negotiate better rates with insurance providers and offer health care packages with better benefits
- Staffing – PEO provides a wide range of other services like recruitment. They ensure that you employ the right person with the right skills and experience helping you to save tons of money and time spend placing job ads, screening candidates and interviewing.
- Performance management – if you have between 10 to 100 employees, you are better off co-partnering with a PEO. They’ll help you to hand HR tasks like training, discipline, leave day requests and other employee issues
- Attract and retain staff – A PEO handles a wide array of benefits that your employees can enjoy like 401k plans, disability and life insurance, health benefits among others.
- Risk management–apart from handling administrative tasks, payrolls and reducing the workload on your end, a PEO will lift the labor law liabilities off your shoulders.
Where Can You Outsource HR Services?
There are three types of outsourcing companies where you can outsource HR services. These include:
- Human Resources Organization (HRO)
Large firms outsource their HR services from HRO’s. The establishments usually have more than 1000 plus employees and benefit from HRO wide array of services like shared HR relationships, and co-management relationships where the HRO assumes full responsibility.
- Professional Employer Organization (PEO)
A PEO will handle most day to day HR tasks that eat away time in a small company for improved efficiency and more growth. PEO is suitable for companies that have less than 200 employees. There are many benefits that employees can enjoy when a small establishment outsourced HR to a PEO.
- Administrative Services Organization (ASO)
An ASO co-partners with an establishment to help it manage administrative processes like filing taxes, performing direct deposits and processing payrolls among other duties. ASO is suitable partners to small businesses with between 10 to 50 employees.
You can outsource HR services from these three types of organizations for increased value and growth of any establishment whether small or large.