With everything you must juggle as a business owner, having a professional employer organization (PEO) in your corner provides invaluable support for helping keep you focused on growing your company. No more getting lost in the weeds of payroll, hiring and a myriad of other management headaches. Your PEO works as a co-employer that focuses on the human resources side of your business, helping you navigate increasingly complex regulations, tedious HR tasks and a highly competitive market for talent.
Whether you’re new to working with a PEO or an old pro, taking full advantage of this partnership can multiply your efforts to increase growth and profitability. Businesses that team up with PEOs not only grow faster, but also enjoy lower employee turnover and higher survival rates than those who go it alone, reports the National Association of Professional Employer Organizations (NAPEO)
At XMI, we have decades of experience providing PEO services to businesses. Here are some secrets we’ve learned through the years about how you can turn your PEO relationship into your secret weapon.
Use your PEO as a talent scout
PEOs are experts at helping employers expand their network of job candidates and pinpoint the best prospects. You can even hire a PEO to manage part—or all—of the recruiting process. Many PEOs have access to applicant tracking systems, which provide digital solutions for customizing job postings and digitally managing and screening applicants. PEOs can also assist with salary negotiations and ensuring compliance with federal and state guidelines throughout the hiring process.
Get their help with talent retention
In today’s tight job market, recruiters are relentless, and your most valuable employees may be just a LinkedIn message or phone call away from being snapped up by a competitor or another industry. PEOs can help with employee engagement and creating competitive perks and packages that will reward their loyalty. They can also help you establish a stronger company culture by developing strategies for communicating expectations, mission and values and supporting employee growth.
Access their resources
Because PEOs work with hundreds of companies and have substantial buying power, they can provide employers with a greater variety of benefits to help them design the best plans to meet employee needs. Partnering with a PEO can help you expand your healthcare coverage beyond a bare-bones plan to more comprehensive options for medical, dental and vision care. At XMI, we also offer life, disability, workers’ compensation and employment practices liability insurance, as well as 401(k) plans.
Tap into their data
Tech-savvy PEOs provide employers with cloud-based HR systems they can use to track and evaluate employees’ time and progress. Systems like these put annual reviews, performance improvement plans and other employee information at your fingertips, while also producing data-driven reports that reveal trends and other insights to help you make more informed decisions.
Glean their compliance expertise
Keeping up with a constantly changing regulatory environment can be exhausting and frustrating for businesses, but PEOs specialize in these matters. Not only can they help with compliance on unemployment benefits, payroll taxes and workers’ compensation, but they can also help you monitor and adapt to changes in healthcare reform, safety and OSHA requirements, minimum wage rules and more.
Ask for their input on HR policies
PEOs can help with updating job descriptions and employee handbooks to make sure they reflect the modern workplace and include language and policies that protect your company legally. When new HR dilemmas arise, they can provide best practices on how to address these issues appropriately when communicating with employees.