Since not all Professional Employer Organization (PEO) are created equal, you need to check which PEO companies New Jersey feature the right qualities for your business. We will look at five critical criteria to assess when considering a PEO like digitalexits.com.
PEO co-partners with small business to feature a shared responsibility of managing employees. In other words, an employee who works in an establishment which outsources HR services from third parties will report to two employers. However, this does not mean that as an employee you lose full control of thems, but, you may not make decisions that are HR related regarding employees.
How Does a PEO Work?
Unlike other HR outsourcing firms like Human Resource Organization (HRO) and Administrative Services Organization (ASO), PEO’s help manage and run the day to day human resource processes of a small business.
Besides, a PEO feature many sponsored cost-effective benefits that both the employer and employee can leverage. Let's look at some of these benefits.
- Health benefits
- Dental and vision coverage
- A healthcare flexible spending account
- Life and disability benefits
- 401k retirement plans
- Paid time off
- Ensures that business is HR compliant
- Workers compensation coverage
- Helps to keep your liabilities in check
- Performance management
- Employee assistance
- Payroll services
- Risk management
- Background screening among other benefits
If you’re looking for relief from the burden of HR processes and tasks employing the services of a PEO would be an excellent idea. However, before you commit yourself to PEO services here are some factors that you’ll need to consider.
Criteria to Assess When Considering A PEO
A professional PEO's has to be verified by the Employer Services Assurance Corporation (ESAC). It must also be State approved.
2. Administrative Control
As a co-employer, a PEO should assume all human resource tasks and processes and lift the workload of HR desk from your shoulders. Hoewer, this doesn’t mean that you have lost all the control you have on your employees. A professional PEO will partner with as you oversee all other operations of your business including HR.
3. Proven Track Record
The PEO you will engage to help you run HR functions must have a proven track record of years of experience in the field. Similarly, you also need to check the financial performance of the potential PEO and evidence of their involvement in handling commercial liability, risk management, and workers’ compensation.
You’ll need to work out the cost-savings you’ll be making when you co-partner with a PEO. For instance, you need to assess the group benefits that you are entitled to and the workers’ compensation from the PEO’s employee base.
5. Customer Service
A PEO might be worth to work with especially if you find that you spend more than five to tens hours in a week dealing with HR issues is your business. Additionally, a PEO will offer both you and your employees sponsored benefits and will reduce the workload on your end significantly.