Learn more about employee leasing.
A Professional Employer Organization (PEO) offers a wide range of benefits for the companies they partner with. One thing that many businesses don’t realize is that a PEO handles a lot of the responsibilities that are often provided by an employee leasing company. In case that term is unfamiliar, an “employee leasing company” is another term describing a PEO.
Since a PEO handles so many of these responsibilities, many people consider them to be PEO employee leasing tasks. To give you an idea of how this works, we’re going to provide some basic facts about PEO employee leasing and what this can mean to your company’s functionality.
What is PEO Employee Leasing?
With an employee leasing agreement, workers or contractors are provided to a business, in most cases, that are needed for a short-term or long-term business project. Very often, these projects have a specific start and end date, which is relayed during the hiring process. It creates a reliable employment relationship between the company and the client, and their responsibilities are divided up.
PEO employee leasing is similar because it involves handling many of the same responsibilities and tasks. The goal is to create the same type of employment relationship, but between the PEO and the client. A PEO will not provide workers, but will manage the HR tasks of your current employees (and any new employees you hire).
Here are some of the benefits that a company can expect when a PEO becomes part of the equation:
Provides Instant Framework
Companies often have difficulty structuring an effective HR department, if they have one at all. When working with a PEO, much of the structure is already in place. The PEO will be able to install an instant framework for everything needed for a given project, making HR solutions accessible.
Lower Administrative Burden
With PEO employee leasing, the PEO will take care of many employer responsibilities, especially those related to employee benefits. These include managing payroll, unemployment insurance, compliance with state and federal regulations, and a variety of paperwork. This will lower your company’s administrative burden so that you can work on other aspects of the business.
Access to HR Expertise
It’s always nice to have your own in-house human resources department. This can be difficult for small companies because of the costs involved. This can sometimes put your company at risk of compliance violations and, in turn, costly penalties. By turning things over to a PEO that has tons of HR experience and expertise, you won’t need to worry about these issues.
Desirable Benefit Plans and Rates
PEOs that provide employee leasing types of services will often be able to negotiate more desirable benefit plans and rates because of the number of workers they’re dealing with as a whole. This means that the PEO will be able to provide benefits that are more competitive in the marketplace, leading to higher-quality workers. This includes improved benefits such as payroll services, health insurance, and workers’ compensation, to name a few.
More Accurate Budgeting
If you decide to work with a PEO, you’ll be able to hammer out all the financial details from the very beginning. This will provide your company with a fixed cost, which you can add to your annual expenses. This allows you to budget in other expenses for the year, including the hiring of more temporary or permanent employees.
Better Employee Retention
With so much competition, it’s often difficult to keep employees happy enough that they want to stick around. PEOs will do whatever’s necessary (and in their power) to take care of your employees’ needs, such as payroll, health benefits, and more. This improves worker retention and lowers your costs caused by high turnover rates.
Mitigate Employer Liability
As an employer, businesses have a wide variety of potential liabilities that can lead to high penalties whenever they’re violated. By going through an employee leasing structure, all these liabilities are assumed by the PEO instead of your company. This allows the PEO to protect you from liabilities while still enjoying the benefits of the workers themselves.
Contact Vested HR for PEO Services
Vested HR provides PEO HR solutions and services that will help take your company to the next level of success. We work with each of our clients to address their needs and the needs of their employees. We treat all our clients as humans, not account numbers.
If you have any questions about PEO employee leasing or any of our other services, reach out to us at (727) 474-2114 today to schedule a free consultation.