If you own a business, having a fantastic benefits package is essential for keeping your employees satisfied at work. Comprehensive benefits help boost employee morale and ultimately increase employee retention, making them a great financial decision for your company.
As important as benefits are, if you own a business or manage a human resources department, you also know how complex they can be. Choosing packages, handling workers’ compensation claims, and ensuring compliance with state and federal regulations can be overwhelming—particularly when your hands are full with other tasks.
Partnering with a professional employer organization (PEO) can be the perfect way to get the support you need when it comes to comprehensive benefits administration. Let’s take a look at the role of PEOs in benefits management, the pros of outsourcing benefits administration to a PEO, and how outsourcing differs from managing benefits in-house.
The Role of PEOs in Benefits Management
As a business owner or HR manager with a lot on your plate, having support from a PEO can be crucial for the success of your business. PEOs specialize in the administrative tasks of a business—from onboarding and payroll to benefits administration and risk management.
When it comes to benefits management, PEOs handle everything from the initial selection of packages to enrolling employees in plans and processing claims. Their experienced team members will also be available to answer any questions you or your employees may have along the way.
Whether you have an HR department or not, a PEO can be a great asset to your company. For companies that do have HR, working with a PEO can take some of the burden off of administrative tasks and allow HR managers to focus on employee satisfaction and retention.
Pros of Outsourcing Benefits Administration to a PEO
Offering comprehensive benefits to your employees is incredibly beneficial for employee retention. If you’re a business owner, you likely want to offer your employees the best options possible, and partnering with a PEO can help make that happen. Because PEOs work with many different companies, they’re able to negotiate lower rates with insurance companies. These more affordable group rates mean PEOs can get high quality coverage for your employees at a much more reasonable price.
Additionally, ensuring compliance with state and federal labor laws is more streamlined when you work with a PEO. PEOs make it a priority to stay up-to-date with any changes in rules and regulations, both locally and federally, which means you never have to worry about non-compliance.
Outsourcing your benefits administration also means that the PEO you’ve partnered with will also handle any insurance claims, helping to streamline the process for both your employees and your business.
PEO-Managed Benefits vs. In-House Management
There are a few key differences when it comes to PEO-managed benefits compared with benefits managed in-house. First and foremost, PEOs have the ability to negotiate lower rates with insurance companies in order to provide premium coverage at an affordable price.
When you partner with a PEO for benefits administration, it gives your human resources department more space to focus on employee satisfaction. Your HR team can focus efforts toward recruiting and hiring new employees that fit well with the culture of your organization, and ensuring they feel supported as they’re welcomed into the company.
Depending on the size of your company and its specific needs, working with a PEO may also mean you don’t need an HR department at all. If you’re a small business owner, this can be a great option to help save money in the long run, and allow you to give more energy to the core mission of your organization.
Maximizing Benefits with PEO Services
No matter the size of your company, working with a PEO can help you maximize your benefits. From negotiating lower premium costs and helping ensure compliance with rules and regulations to saving you time and money long term, having the support of a PEO can make a huge difference in the success of your company.
If you’re ready to outsource your benefits management and help streamline the administrative side of your business, reach out to the experienced team at PEOPayGo today!
