PEO vs. In-House HR
Yes, we know, we’ve heard it a few times before. You think human resources outsourcing isn’t an option for your company because you have an employee that handles HR. But before you dismiss it altogether, we’d like to share a few ways that a professional employer organization (PEO) like Optimum Employer Solutions provides a lot of value. Hopefully, our advice will justify our cost and potentially even save you money, regardless of whether you have an employee handling HR or not.
What does a PEO offer you that your employee can’t?
- More Experience – While in-house HR may have some great experience, PEOs have cross-industry experience that allows them to handle a wide range of issues. This specialized insight allows a PEO to quickly resolve your challenges. In addition, they can provide you with a larger toolbox of knowledge to draw from when handling any kind of HR situation.
- Protection Through Co-Employment – A PEO will provide your company with more protection through co-employment. On the other hand, in-house HR is usually unable to shoulder the extra liability for compliance.
- Increased Efficiency – PEOs can work with clients that do not have an internal HR manager, or with ones that do by enhancing what your in-house HR team is doing. One way Optimum does this is by placing your current team in more strategic roles to maximize efficiency. Think about it. Your HR manager’s time is spent doing payroll, workers’ comp audits and benefits reconciliation. How much time is left to think strategically about company culture, attracting and retaining top talent, or ensuring the company is an employer of choice?
- Ongoing Training – At Optimum, our team specializes in HR, ensuring that they receive continuous training on a monthly, if not weekly basis. This means that we are always on the cutting edge of new developments in the HR field. This is something your in-house HR may not have.
- Access to Better Benefits – When you work with a PEO, you become part of a large pool and will have access to better benefits for your employees. Not to mention, at a better price than what you would receive on your own in the small group market. Your increases from year to year will likely be less with a PEO too.
- Access to Better Technology – A PEO can offer your employees access to an HRIS system. With this cloud-based technology, employees can access pay stubs, W2s, and other HR information through a customized online portal. Internal HR has access to information with just the touch of a button. This allows them to be more effective in their role. This software is very costly to obtain on your own, so there is real value in receiving it as part of your PEO service.
Still not convinced?
If you want to enjoy these many benefits, consider keeping your in-house HR department. You can still consider outsourcing non-core activities to a PEO. Not only will you gain these many benefits, but you and your key employees will also be freed up to focus on growing your business and making money.
Optimum Employer Solutions: Your PEO Choice
One of the main goals of Optimum Employer Solutions is to free up your valuable time so you can focus on generating revenue for your business. Various studies have shown that small business owners who are managing less than 25 employees can spend up to 40 percent of their workday performing human resources administration and payroll tasks.