When owning a small business, you might want access to Human Resource (HR)-related assets, on top of benefits for your employees. Hiring a professional employer organization (PEO) and getting PEO insurance can solve those problems easily. There are at least 980 PEOs operating in the United States, according to NAPEO, with 2.7 to 3.4 million people benefiting from their services. There are benefits and risks of using a PEO; find out whether hiring a PEO is the right game plan for you and your company.
The Benefits of Using a PEO
If your company is lacking in the HR department, then hiring of a PEO and getting PEO insurance might be the right thing for you. More than 150,000 small businesses use PEOs to gain access to benefits and an HR-related structure. With a PEO, you won’t have to worry about administrative day-to-day tasks, meaning you’ll have more time to focus on the nitty gritty of your company, according to Business News Daily. PEOs offer better benefit packages for their employees, giving small companies the opportunity to receive benefits that generally only larger companies can get.
PEOs are specifically trained to do the job that they are hired for, making them an expert that you won’t have to worry about. With better benefits comes better employees, meaning that more dedicated, hardworking employees to come to your company. Everyone loves good benefits, and that’s what brings out the top talent in the area. The final good thing about PEOs is that when you need them, they are there for you when it counts. If a former employee happens to sue, your PEO will have the resources available in order to keep you and your company protected. Coupled with PEO insurance, your company will be in a good place after utilizing a PEO.
The Risks of Using a PEO
There are many benefits of using a PEO, but there are also risk factors that come along with it as well. When you hire a PEO, you are giving up your ability to be a part of administrative tasks. That might be difficult for someone who likes to be a part of daily operations like that. While a PEO is supposed to take a load off your shoulders, they can also cause you stress as well. After all, some business owners like to have their hands in every aspect of their business.
Another downside to having a PEO is that you’re going to have to fund their services. PEOs take a pay cut from your payroll in order to pay themselves. While PEOs can give you access to better health benefits, they also have you at the mercy of their every move. If your PEO decides to change out their insurance carrier for a better deal, you’ll be stuck dealing with the loose ends. A PEO can be impersonal, meaning that they act more like a corporation and not a large family. Small businesses that enjoy that family feel might not appreciate a PEO.
With the PEO industry making between $136 and $156 billion, according to NAPEO, your company might be interested in making the jump. World Wide Specialty Programs specializes in the staffing services that a PEO offers.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.