South Florida Hospital News
Friday December 15, 2017
Quote

test 2

May 2013 - Volume 9 - Issue 11

Subscribe

Advertisements

EmedmalSmall.JPG
advertizehere.gif

PEOs Can Really Help

What do 70,000 Florida companies have in common? They have all chosen to partner with a Professional Employer Organization (PEO). In fact, in Florida alone, the PEO industry employs more than 900,000 and pays $25 billion in payroll annually.
 
Why are PEOs so popular?
Today, business owners need proven solutions and the best partners to better navigate constant increases in group health premiums and the tough and ever-increasing economic and regulatory conditions that currently exist. One of the best ways to accomplish that is to partner with the right PEO. PEOs enable businesses to cost effectively outsource the management of human resources, employee benefits, payroll, and workers’ compensation, allowing them to focus on their core business and to maintain and grow their bottom line.
 
The concept of “outsourcing” is nothing new to small businesses. Rather than incurring the cost of hiring additional internal staff, most small businesses already outsource critical functions of their business to partners, such as a CPA firm or a law firm. They partner with them because of their value, specialization, and expertise, which are the same reasons they partner with a PEO. Most small businesses wouldn’t attempt to run their businesses without the financial expertise of a CPA or without the legal expertise of a law firm. That is why, in today’s complicated and ever-changing world of employment law, skyrocketing group health premiums, complex employment regulation, and all the unknowns of the Patient Protection and Affordable Care Act (PPACA), successful businesses are looking to PEOs for HR and benefits administration and expertise. Outsourcing your HR and employee benefits to a PEO is a great way to keep your business protected, control costs of group health premiums, maintain compliance with PPACA, and attract and retain the best possible employees.
 
The key feature of PEOs is they aggregate employees from several independent organizations into a single pool, yielding service and cost savings. This creates economies of scale and the law of large numbers, which decreases the risk and, in turn, stabilizes and potentially reduces group health rates, workers’ compensation insurance rates, and state unemployment rates. Further, partnering with a PEO allows businesses to shift responsibilities of non-revenue-generating tasks that are more efficiently handled by off-site experts in HR and benefits management. Examples of these functions include labor compliance, benefits offering and administration, payroll, risk and safety management, and compliance with PPACA, all of which allows businesses to control costs, reduce liability, increase benefit offerings, and focus on their core competencies.
 
If partnering with a PEO is something your business would like to explore, having an independent PEO expert is a great place to start. Since every business is different and PEOs vary in service levels and benefit offerings, having an expert who can leverage his industry knowledge and experience is highly recommended. Since an independent PEO expert represents you, he can access your unique needs, navigate and streamline the Request For Proposal (RFP) process, provide an independent cost analysis, and offer unbiased recommendations, as well as save you a great deal of time and effort required for comparison shopping.
Steve Chavoustie is a Professional Employer Organization (PEO) specialist with Danna-Gracey. He can be reached at (888) 978-5457 or SteveC@dannagracey.com.
Share |