I recently read an interesting article about the rising healthcare costs among businesses this year. But instead of going into the usual story of the state of our healthcare today, the article provides a sense of relief. “There are still creative ways in which employers can control and reduce group insurance costs.” Through the use of a PEO (Professional Employer Organization), your employees and business have access to all of the benefits of a larger business through the co-employment relationship. The arrangement also offers access to areas such as HR, payroll, compliance, workers compensation and risk management, and 401-k administration.
When a smaller company enters into this co-employment relationship you employees get pooled in with the PEO’s large group plan and therefore one has access to better rates and options. “Additional savings may be realized through increased purchasing power for liability insurance as well as other benefits including: Flexible Spending Accounts, COBRA administration, Employment Practice Liability Insurance, Employee Assistance Programs, Wellness Programs, and use of binding arbitration to resolve employee-related suits. ”
In addition, with a PEO a company has access to HR Management Practices that they would not have without a PEO. These include, enhancement of management practices (including better health insurance), and pre-employment drug testing. All of these best practices make it easier to attract top talent.
To sum up this article, they make the recommendation that you take your time and choose a PEO wisely, based on years of experience, its location, and the offerings that it has to make your business more efficient. Stop wasting time with administrative tasks and get back to growing your business.