Professional employer organizations (PEOs) allow small (less than 20 employees) and mid-sized (less than 500 employees) employers have the same kind of benefits that large businesses have without the sizable outlay of cash.
The cost of using a PEO is a small percentage of total payroll.
PEOs fill two important roles in your organization.
First they take your small group and add it to their “group of groups” to afford you to buy coverage and benefits using economy of scale. For example, you might have 20 employees and join a PEO that already has 10,000 other employees being covered for workers compensation. The PEO does all the negotiating with one or more insurance carriers to obtain the best coverage for a rate that you couldn’t qualify for on your own. The same thing applies to health care benefits, state and federal unemployment insurance, and other benefits you may need to provide your employees to be competitive.
The second purpose of a high quality PEO is to act as your outsourced human resource (HR) department. Strong PEOs have numerous experienced and well credentialed advisors that you can access by picking up the phone. They stay current on all the HR regulations and court cases that affect employers. They stand “shoulder to shoulder” with you in disputing a Texas Workforce Commission unemployment claim that is not justified. They help you by writing employee and safety manuals to help keep your company’s negative claim history to a minimum. Most PEOs provide Texas employers an Employer Practice Liability Insurance policy (EPLI) of at least $1 million dollars. The EPLI policy is there to pay for any defense or claims that an employee may make against your business for violating one of the many federal and state regulations affecting human resources.
Being a small business owner is difficult enough without all the accompanying HR hassles, so let us help you find a good PEO for your business today. We are experienced in knowing what is available in the marketplace. Every PEO has a personality, just like your business does. We try very hard to match your company’s personality to the PEO that fits your needs best.
For more information please call us at (512) 697-9509 or complete our online form.