Professional Employer
Organizations (PEO)
Professional Employer
Organizations (or PEO) have been around for some time but are gaining
popularity as the cost of being a small employer goes up.
Working with a professional employer can also be a better
way to attract far superior employees too that you otherwise could
not obtain due to the limits of being a small employer.
Professional Employer
Organizations simply work by hiring your employees and leasing
them back to you at a flat rate.
They provide benefits, keep on top of all the labor laws,
manage payroll and taxes, and can place them elsewhere if business
takes a downturn or the employee simply doesn’t work out.
Employee Leasing
When
hiring employees, Professional Employer Organizations can also
serve to do your recruiting and screening, saving you money on
these processes as well.
This
isn’t to say that working with a Professional Employer
Organization is
cheap. They of course
make money. But where
small businesses have come to the point of hiring someone to
perform these functions, or if the owner or management of the
company is not able to produce, the cost of using Professional
Employer Organizations might just make up the difference.
Keep
Control
Working
with a Professional
Employer Organization doesn't mean that you lose control over
your employees. Your relationship doesn't change in the
least. You can reward them, hire them, fire them, and give
them raises as you see fit. These are your employees except
for tax reasons.
