How restaurants can benefit from PEO services
Managing a restaurant comes with a great deal of responsibility. In the front of house, you want your customers to enjoy their quality dining experience. And in the back of house, you want to give your employees a positive work environment and every opportunity to succeed.
But because of the hectic and customer-centric nature of the restaurant business, it can be hard to make sure everyone is happy, especially your employees. If you need help streamlining your back-office tasks and responsibilities, it might be time to partner with a professional employer organization (PEO). What can a PEO do for you? A PEO takes the hassle of administrative tasks off your plate so you can focus on customer service and growing your business while improving your employees’ experience.
Want to know more? Here are the ways restaurants benefit from PEO services.
Simplified Payroll and Employment Taxes
One of the biggest benefits a PEO can offer is to handle payroll tasks for you. This will save you time and make day-to-day operations easier. Why is this so important? Because when you run a business, you know, wrong or late payments can not only affect the finances of your employees but their morale as well. And it doesn’t help restaurants typically have more complex payrolls than other businesses because of tips. Your PEO can reduce payroll hassles, ensure your employees are paid on time, and payroll taxes are managed properly.
All employee tax-related issues become the responsibility of the PEO company. The PEO will:
- Make payments and deductions
- Prepare and file tax forms
- Report taxes under its own employer identification number (EIN)
By eliminating the administrative burden of handling payroll and taxes, you can have more time to actively run and grow your business.
Access to Better Benefits Packages
Offering a competitive benefits package remains a struggle for many small and mid-sized business owners. One way that a PEO can help your restaurant is by providing access to better benefits packages than you could get on your own. Through the co-employment model, PEOs have a large pool of members paying into the benefits package. This lets them negotiate better insurance rates and benefits for their clients.
A PEO can save you the hassle of shopping and comparing different benefits plans. They provide a choice of generous coverage options for medical, vision, and dental care, as well as workers’ compensation, life, and disability insurance. Your employees may also gain a 401(k) savings plan. When you partner with a PEO, expect a one-stop shopping for your benefits and insurance needs.
Lower Employee Turnover
An unfortunate truth in the restaurant business is that they have high employee turnover. The national average restaurant turnover rate is estimated to be over 75% and that number has only grown since the beginning of the COVID-19 pandemic.
As you know, employee turnover is expensive. It can cost 15% to over 200% to recruit, hire, and train new staff. And while you’re going through that process, there will be an extra stress on existing staff as they have to fill in the gaps.
Vested HR can help lower employee turnover by:
- Improving your ability to recruit the right employees
- Providing ongoing professional development
- Offering your employees a more attractive benefits package
- Ensuring employees are paid accurately and on-time
- Sorting out small issues before they turn into major problems
- Handling human resources issues
With PEO services, you get higher employee retention rates, profitability, and competitiveness in hiring areas. In fact, industry research reveals that companies who partner with a PEO experience an average reduction in employee turnover by up to 15%.
Quality Human Resources Support
You didn’t open a restaurant because you love paperwork. So, instead of spending hours managing human resources and administrative tasks, why don’t you use a PEO to handle back of house duties for you? With PEO services, you can actually focus on running and scaling your business.
A PEO can assist with the following aspects of employee management:
- Human resources administration
- HR policies and procedures
- Regulatory compliance
- Employee relations and retention
- Performance appraisals
- HR training and development
- Customized employee handbook
- Unemployment claims processing
- HR policies and procedures
- Harassment and discrimination
- EPLI (Employer’s Practice Liability Insurance)
The PEO HR experts can create effective strategies to not only add value to your business but also to your employees. Being able to manage employees and keep your best talent, your restaurant can stay competitive and open.
Workplace Safety and Risk Mitigation
Even with a delicious menu, a loyal customer base, and an effective marketing strategy, one wrong move can ruin it all. A single accident or claim can force your business to close its doors for good. A PEO will work to understand your business, to guide you on compliance, and help protect your business with workers’ compensation insurance and employment practices liability policies.
A PEO also can give you access to pay-as-you-go workers’ comp programs at very affordable rates. To reduce risks, a PEO can also help with harassment and discrimination training, saving you thousands of dollars in potential claims.
Aside from HR risks, a PEO can help your business with HR compliance. PEOs keep up with the legal landscape and can put together plans to ensure their clients stay compliant. If laws and regulations change, your PEO will keep you updated so you can make sure your policies and procedures meet the new regulations.
Vested HR Can Help Create a Recipe for Success with PEO Services for Restaurants
Vested HR is an expert in helping businesses in the restaurant industry achieve their goals by streamlining their HR and payroll process. We help business owners like you manage their employee-related tasks, including payroll and tax management, workers’ compensation, and benefits administration.
Our PEO services give you the support needed for a happier, more productive workforce, as well as a better bottom line. Let us handle the administrative tasks so you can focus on running and scaling your business. Contact our PEO team today to schedule a free consultation.