Find relief from employment administration

Given today’s economic challenges, the competition for talent and ever-changing employment laws, launching and running a business are more time-consuming and stressful than ever before. Business owners typically have an endless to-do list, which not only keeps them busy, but often prevents them from achieving a healthy work-life balance.

Managing a business encompasses much more than simply focusing on the company’s services and clients. Internal responsibilities, including human resources (HR) management and administrative chores, can overwhelm even the most resourceful entrepreneur. In an effort to cope, a growing number of businesses are turning to professional employer organizations (PEOs) for assistance.

PEOs serve as HR departments for small and medium-sized businesses, helping them deal with the myriad HR issues that arise on a day-to-day basis.

How does it work? When a company signs on with a PEO, that company and its employees, including the business owner, enter into a co-employment relationship. Under this arrangement, the PEO assumes or shares many of the responsibilities associated with being an employer.

By working with a PEO, the client receives much-needed relief from the day-to-day responsibilities of employment administration, increasing efficiency and productivity and freeing executives to concentrate on the revenue-producing and strategic aspects of their operations.

A full-service PEO provides a number of services, including:

• Employer liability management. In a co-employment relationship, the PEO shares liability with the client company. This results in lower risk and reduced liability for the business owner.

• Government compliance. According to the Small Business Administration, small businesses employ about 50 percent of the work force but shoulder 63 percent of the total regulatory costs. A PEO brings the discipline and know-how to help keep companies out of trouble – reducing penalties and paperwork.

• Payroll processing. A PEO delivers on-time, accurate payroll and handles all related tax filings.

• Benefits management. PEOs can take advantage of volume buying power and offer small business employees a comprehensive benefits package that can include health, dental and vision coverage, a prescription drug program, and short- and long-term disability insurance to which they may not otherwise have access.

• Recruitment and employee selection. A full-service PEO’s recruitment and selection services include writing job descriptions, placing ads, reviewing resumes, interviewing, administering pre-employment testing and facilitating background checks.

• Training and development. A variety of tools are available to assist employees in honing their job skills and cultivating new ones. Some PEOs provide on-the-job training and online learning opportunities.

Working with a PEO is a strategic management option that allows business owners to focus on growing their companies rather than being bogged down with administrative HR tasks. It is also a solution that may not only allow an owner to achieve his or her business goals, but to actually have a little extra time to achieve a healthy work-life balance. For most entrepreneurs, that is certainly the answer to many of your problems.

Wishing you many happy returns,

Dr. Wayne T. Essex