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Does Your Startup Need a PEO?

May 13, 2017

Time is a precious resource for entrepreneurs. As the leader of your company, your schedule is demanding and you have no time or energy to spare. You know your business inside and out, but when it comes to operational responsibilities like human resources (HR), it may take hours to accomplish only the bare minimum. Professional employer organizations (PEOs) offer the relief you need.

Startups and HR Challenges

From implementing policies to onboarding employees, properly implementing the necessary HR processes requires significant time and effort.

PEOs are a wise investment for startups, even those just getting off the ground. When you work with a PEO, you’ll be able to:

Create a Foundation for Success. Forming a business means starting from scratch. You’ll need to set up the framework by developing and implementing HR policies. Having these policies in place early on will help you prevent future problems and avoid having to play catch up when your hire more employees down the line.

Attract Top Talent. It’s difficult for startups to compete with the benefit packages offered by much larger companies. You can’t afford the policies that big companies can, making it difficult to recruit and retain talented employees. PEOs provide startups benefit plans that are comparable to those of much larger companies, allowing you to offer top job candidates the quality benefits that will make them want to accept your job offer and stay with your company for the long term.

Focus on Your Business. You have noextra time when starting a business. You need your energy—and your employees’ energy–to be focused on growing the business, not on administrative HR tasks. PEOs take over time-consuming tasks and allow your human capital to be used more efficiently.

Reduce Costs. Money is always an issue for startups. Hiring a full time HR employee is not something many startups can afford. PEOs offer a cost-effective option for HR management.

Reduce Liabilities. Startups can’t afford to be sued or have compliance issues. Fighting claims in court or paying fines can significantly impact your company’s bottom line. PEOs not only handle any claims made by existing or former employees, but also implement preventive measures for issues like discrimination or wrongful termination claims. PEOs monitor the constantly changing laws and regulations impacting your business to ensure you are in compliance.

Keep Up with Rapid Growth. Startups grow at a rapid pace, which can make keeping up with employment-related tasks a challenge. A PEO can help onboard new employees and take care of the HR responsibilities that go along with hiring additional staff.

You have a lot on your plate as the owner of a startup. Administrative HR tasks don’t have to be a burden. PEOs offer a comprehensive HR solution that will save you time and help you build and retain a successful team.