What you may have not bargained for when starting your business venture is the inevitable Human Resource (HR) administration that comes with running the daily operations of your company. This is where a Professional Employment Organization (PEO) like Vested HR can be your biggest asset!
PEO services offer many benefits for businesses small and large, but not all companies need or are ready for the services that a PEO provides. Knowing when to invest in these services can help you save time and money (and a lot of stress) in the long run.
Not sure if you need a PEO yet? Here’s our guide to help you out!
Could Your Company Benefit from a PEO?
Short answer: yes. Longer answer: you have to know when is the right time in your company’s growth to benefit most from working with a PEO. As with anything, it’s generally better to start before you’re ready, but since we partner with businesses for a long time we want to make sure it’s a good fit.
A PEO is essential for any business looking to maximize efficiency. When it comes to managing a business’s human resources, payroll, and other administrative tasks, partnering with a PEO can be an invaluable asset.
Companies with between 10-100 employees often find that outsourcing their payroll and HR functions is more efficient than attempting to manage everything internally.
Small businesses may want to consider hiring a PEO as soon as their company begins expanding. A PEO can provide valuable support in:
- Navigating regulatory issues
- Onboarding new employees
- Accessing important resources like employee benefits programs
- Maintaining compliance records
- Payroll services
- And more!
If any of these reasons sound appealing, or you find yourself needing support in any of these areas – you may be ready for a PEO!
Learn More > How PEO Services Help You Save Time
Is it the Right Time for Me to Hire a PEO?
The answer to this question depends on several factors, including the size of your company, how quickly it is growing, and what types of services you need to accomplish your payroll and HR administration tasks. (But, we’re happy to give you a free evaluation.)
A quality PEO will be able to offer services tailored specifically to your needs, allowing you to focus on what matters most—running your business.
If you are just starting out or have only a few employees, it may not be necessary to hire a PEO right away; however, as your company grows and becomes more complex, having access to comprehensive PEO services can help keep everything running smoothly.
Signs it May Be Time to Hire a PEO
If you’re seeing the following signs, it may be ready for you to take the next step in hiring a PEO like Vested HR:
- Human Resources Management is Becoming a Burden
- Your Budget Does Not Allow for an In-House HR Team
- You’re Growing Your Company (or have constant staffing changes ex. A restaurant)
- You’re Concerned About HR, Payroll, or Safety Compliance
#1. Human Resources Management is Becoming a Burden
If you are overburdened by the range of HR-related operations when it comes to running your business, outsourcing some HR tasks to a PEO is a great solution.
We recommend taking a deep look at what tasks make the most sense to outsource, including:
#2. Your Budget Does Not Allow for an In-House HR Team
For small businesses, there likely isn’t much room in the budget to hire an HR professional as an internal employee. Instead of taking on the additional cost of a salary and benefits, you can explore working with a PEO that charges a flat fee per employee. This can save you time & money while also providing a team full of experts at your disposal when you need an HR-related question answered.
#3. You’re Growing Your Company
As your organization grows, you can greatly benefit from a partnership with a PEO. You can leverage having access to competitive benefits that attract better talent, along with payroll management and timekeeping for additional employees.
If you’re always growing, but the staff changes frequently like in a restaurant or in construction, then you’ll certainly want to get a good grasp on your employee onboarding and HR processes.
#4. You’re Concerned About HR, Payroll, or Safety Compliance
Another sign that you may be ready to work with a PEO is a growing concern about liability and staying compliant with ever-changing laws. When you have employees, there are risks you assume regarding employee laws, ACA-compliant benefits, reporting, payroll taxes, and safety.
If you’re concerned that you aren’t equipped to stay up to date with these laws or requirements, a PEO is a great partner to have.
For example, if you have employees from different states or countries who require different tax forms or regulations associated with their salaries or benefits packages, a PEO will handle those details for you so that nothing falls through the cracks.
Learn More > How a PEO Can Help With Payroll & HR Tasks
Benefit from our Human-Focused Approach
Determining when to start working with a PEO is an important decision for any business. It requires careful consideration of the needs of your company, its future growth potential, and its available resources.
If you are growing quickly, or if you do not have the resources or expertise needed in order to manage HR activities, our team of HR professionals at Vested HR can be an invaluable partner in helping you stay compliant and successful.
Focus on what you do best, and we’ll do the rest! Call us today for an evaluation at (844) 928-0925 or (727) 474-2114!