HR Support and PEO: What to Expect
Why Small Businesses Benefit from PEO HR Support
Businesses fewer than 30 W2's typically don't have a dedicated HR representative or expert on staff due to the overhead cost.
The Controller, Operations Manager, or sometimes even the owner step in ad hoc when the situation calls for it. Common use cases include performance management, terminations, and disputes relating to hours for non-exempt employees.
While it's suggested to have an EPLI policy in place to protect the business from lawsuits, it's equally important to have proactive measures and a plan in place to ensure you’re going about it the correct way. This can include paying a retainer for an outside 3rd party HR Consultant, but this can be rather costly for a small business. Unfortunately, a traditional payroll service doesn't include access to HR resources, so that often leaves a company confused as to a clear go forward strategy.
The PEO Solution
Fortunately, there's a solution that’s available to any company using the services of a PEO provider.
While the scope of depth varies based on each PEO provider's support model, expertise typically includes:
1. PHR or SHRM certified HR representative to help navigate the challenges of HR
2. Reviews data to build a strategy that prioritizes key areas of opportunity.
3. Setting up company polices, such as a leave of absence or compensation benchmarking, and employee handbook.
4. A risk and safety consultant will visit the client workplace and help establish an effective OSHA-compliant safety program that’s personalized for that client’s business.
Is a PEO right for your business?
If you’re a small business and questioning the need for any of these services, that’s fine! The needs of every business are unique and evolve as they grow and scale, and will always be available when the time arises. A PEO provides other value adding functions such multi-state compliance for a fragmented workforce.
