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Published on Sep 24
The daily operation and management of a small or medium-sized business can take all of the energy out of you, leaving you drained of time to grow your business further. While it may seem that you have to take on all of these burdens alone or divide up the tasks amongst your already overworked managers, a PEO partner may be just the solution you need. SMBs that use PEOs grow 7 to 9 percent faster, have 10 to 14 percent lower employee turnover, and, most importantly, are 50 percent less likely to go out of business than those who do not utilize HR outsourcing services. Payroll, administrative tasks, and HR functions can be the most time-consuming tasks associated with running an SMB – tasks that your PEO partner can manage for you – leaving you more time to focus on growing your business.
1. Banish payroll woes
The tasks associated with payroll administration take up a surprising amount of time. Far from just tallying up the hours worked and signing payroll checks, payroll processing can eat up an average of six to ten hours per week. Between the threats of penalties if the job isn’t done right to the significant drain on your time, payroll processing is one of the most common tasks for SMB owners to outsource to their PEO partner.
Sheakley’s Human Capital Management application comes complete with Payroll Processing Services, Time and Labor Management, Employee Onboarding tools, ACA Management, and online Benefits Enrollment. This complete payroll administration solution offers everything from basic payroll processing to electronic tax filing, while helping you manage costs and stay compliant. The system allows employers and employees to access and update employee information any time from anywhere. W-2s are automatically available to employees at the end of the year and employees can access up-to-date PTO accruals at any time. Check out Money Matters: PEO Payroll Services to learn more about how your PEO can help banish your payroll woes.
2. Limit liability
Your managers or HR generalist may be able to keep up with some basic daily HR tasks, but a strong HR background is needed to keep your business compliant with federal, state, and local employment-related laws. Keeping you compliant with hour and wage laws, ensuring that FICA withholdings are correct, and making sure that all workers are properly classified are just a few of the ways that your PEO partner helps to shield you from liability while freeing up your time to focus on your business.
Understanding hiring regulations, EEOC requirements, collective bargaining agreements, recruiting, training, payroll processing, and benefits administration can be overwhelming – and those are just some of the areas where an HR professional helps to limit your liability. If your employees don’t know who to report issues or problems to, if managers are unsure of how to pass along information, or if you find some HR tasks getting lost in the shuffle, you may want to consider exploring HR outsourcing options. Outsourcing can allow your managers to focus on leading their teams and growing your business, while your HR partners keep you compliant. Read Regulatory Compliance: Is Your Business Prepared to learn more about how a PEO partner can help you remain compliant.
3. Relieve administrative stress
Onboarding, disciplinary actions, and employee handbook updates are all essential for the success of your business, but these administrative tasks can also quickly erode the amount of time you and your managers have to dedicate to revenue-generating tasks. If your team spends a significant amount of time bogged down with administrative tasks, it may be time to consider outsourcing some of your HR functions.
From processing new hire paperwork to benefits management, as your business continues to mature, your managers can quickly find themselves spending more time on administrative tasks than on their actual job functions. For many SMBs without a dedicated HR manager, this can be particularly damaging. Check out Eliminate These 5 Human Resources Tasks by Outsourcing to learn more about how your PEO can help take some of the stress out of growing your business.
4. Retention bonus
Managing the HR needs of an expanding staff can lead you to shift focus from the actual job you should be doing. Expecting your managers to handle HR functions in addition to their regular tasks can quickly lead to a lack of focus and create a sense of dissatisfaction with their jobs.
Outsourcing time-consuming HR tasks to a PEO partner creates more opportunity for your managers to grow and develop in their positions – and contribute more time to helping boost your company’s bottom line. Instead of your managers having to wear multiple hats and adding to their stress, passing off common HR tasks to a PEO lets them spend time exploring new ideas and implementing strategies that will help your business grow. When your employee count starts to increase as a result of these new ventures, your PEO partner can help you quickly scale your HR functions for rapid growth in the future.
5. Benefits you can count on
Benefits, like health, dental, vision, and 401(k)s, are increasingly seen as a mandatory component of today’s modern compensation package. Instead of being a perk, benefits are an essential element of a business’ recruitment and retention efforts. For some SMBs, however, finding affordable benefits and the time to manage them may seem like a pipe dream.
Working with a PEO partner gives SMBs access to Fortune 500-level benefits at an affordable rate. Best of all, your health, dental, vision, 401(k) plan, life insurance, and other flexible benefits are administered by the PEO, leaving you and your staff more time to focus on income-producing activities. Your PEO partner will also ensure that the benefits offered by your company keep you compliant with current ACA regulations. In addition to being easier to manage and more budget-friendly, the benefits offered by your PEO can help you recruit and retain top talent as your company grows. Read Reduce Turnover with Better Benefits to learn more about selecting the right benefits for your employees.
Solutions that save you time and money
Business owners report that taxes, healthcare, and hiring are among their greatest employment-related concerns. These are areas that require a high level of knowledge and a significant time investment to master. These are also areas that align perfectly with the offerings and expertise of PEOs. It’s no surprise that more owners are turning to HR outsourcing to keep them compliant and allow them to offer better benefits for their employees while leaving owners more time to focus on growing their business.
Learn more about Sheakley’s PEO team and contact us for your free consultation today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join the discussion by commenting below.