Professional employment organizations (PEO) are helping smaller organizations deal with the effects of the economic slowdown. PEOs offer their clients the service and expertise of a personal department that few small companies would have access. Small clients can elect to rely on the PEO to provide a few or all HR functions. As the company grows, the PEO services are scalable to provide the right level of service at the right stage of your company’s growth. Typically, utilizing the PEO helps lower costs and improve the quality of these administrative functions.
"It’s like having an accountant, a human resource professional, a lawyer, a risk manager, a benefits manager and a manager of information services available at a fraction of the costs of hiring full time employees. "
"The PEO lets the CEO concentrate on the organizations core business and improve its bottom line."
In today's economy, PEOs can help minimize the high risks associated with work force reductions. Employee regulations are fluid and becoming more complex. During the past few years laws and regulations have been changing continuously. The recent economic stimulus package contains a variety of new labor and employment provisions that have to be understood and incorporated into downsizing strategies. More and more employers are seeking guidance from their PEOs to minimize their exposure to these new and complex regulations.
Keep in mind too, that PEOs are experts in managing health care costs and programs. Using a PEO to help manage your company’s skyrocketing health care costs makes good business sense. PEOs are expert at designing and administering plans that typically lower costs and are better suited to your organizations work force. Understanding what’s possible and how to best involve your employees with a new program is the key to success in this area.
Irv Williamson Managing Partner Growth Guidance Solutions LLC
