Managing In-House Resources by Utilizing a PEO
What’s the point of using a PEO? PEO’s can be used for a variety of functions, including playing the role of a Payroll Outsourcing Company, assisting clients with handbooks and forms for their employees, or handling other Human Resource needs. Some service options include compliance and labor law advisement, training and resource creation, such as providing employee handbooks, and even the administration of employee benefits.
PEO’s can even help keep employees up-to-date with their respected subject matter by providing regular, ongoing training courses in addition to brief, informative updates. They often handle compliance training, for example, mandated sexual harassment training
Most PEO’s are best known for handling Payroll Services. Best known for their role as a payroll outsourcing company, PEO’s are largely used to distribute paychecks, track the costs associated with staffing, and much more. PEO’s have a multi-faceted function via payroll services, even handling garnishments, tax and benefit deductions, and creation of reports to track these costs.
For insurance and safety of a corporation and its workers, other PEO’s provide a measure of security by doing background screenings, including criminal background checks and whether or not an employee is legal to work in the United States of America.
Many PEO’s will use E Verify to ascertain that your interviewee is a legal worker and research your potential new hire to protect your corporation from possible legal action. PEO organizations will also ensure that your organization is compliant with federal guidelines and track any new legislation on the state level regarding compliance.
With PEO’s, the work burden is removed, costs are reduced, and corporations are still able to offer employees the important functions which they need in human resources and payroll.
Given the great benefits of using an outsourcing company like a PEO, how should employers balance in-house resources against these external aids? One way is to treat the outsourcing and reductions as a positive change for the corporation, reminding employees that a business must focus on profit to continue to employ workers. Hang on to departments that remain profitable and stay within their targeted budgetary expenses.
How can corporations resolve financial gains with the lay-offs necessary to complete the out-sourcing? While some lay-offs are necessary, it is possible to avoid extreme lay-offs by re-training employees for new roles within the company. Plan the outsourcing carefully. Offer employees the option of learning new skills to fill needs in other departments. Preparing workers for a shift in work-role and choosing to transfer staff from Payroll and/or Human Resources into other departments shows that the corporation values its greatest asset: its workers. It also transforms a potentially negative situation into a positive one. With artful forecasting and focus, a corporation can use outsourcing to its greatest advantage—without sacrificing its existing in-house resources.
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04 Mar 09 |