As a small business owner, it’s normal to think you can manage things like compliance, human resources, employment benefits, and employee engagement by yourself when you’re just starting. However, as the company grows and you gain more employees, outsourcing these tasks can help you manage your employees better and focus more on your company’s growth.
PEOs have a team of professional HR managers who can help small to medium businesses that aren’t big enough to have a full HR department handle important business functions like compliance, employee benefits, employee performance management, and so on.
In this post, we cover the signs that your company’s HR could benefit from a PEO and how they can help you streamline your internal processes and make it easier to focus on what really matters.
9 Signs You Should Really Consider a PEO
Many small business owners and leaders don’t know when to outsource their HR needs to a PEO partner until it’s too late. In many situations, they end up losing out on top talents and struggle with internal administration when they could be upscaling.
Here are nine signs you could use the help of a PEO partner so you don’t have to guess.
You Make Poor Hiring Decisions
While making the right hiring decisions is important for all companies, it’s even more important for small businesses. Employing the wrong person for the job can cost thousands of dollars to rectify, reduce productivity, and negatively impact growth.
If you notice that you’re regularly hiring employees who can’t function in the roles they are hired for, it may be a sign that you need a PEO partner. PEOs specialize in helping businesses meet their talent needs by shoring up recruiting and onboarding processes to make it easier to find people who are skilled for the roles.
You Find Compliance Difficult
Compliance is one of the most complicated parts of running an organization because it requires extensive research and knowledge of federal and state regulations. Many small business owners struggle with it, and it comes with high stakes.
For instance, if you make an omission or error, you may have to pay a fine or go through litigation to rectify the problem.
To avoid fines and litigation costs, it’s only natural to outsource compliance matters to an IRS Certified PEO firm like ABO with qualified experts who understand how to solve compliance challenges and are up to date on all government policies and industry regulations.
Payroll Stresses You Out
If payroll stresses you out and you always seem to make mistakes, you’re not the only one! A lot of employers make payroll mistakes, and these mistakes aren’t cheap. According to a 2022 survey by EY, the average business makes around fifteen corrections per payroll period, which costs about $291 to fix per error. However, by partnering with a PEO firm, you can entrust important payroll tasks like tax filings and file maintenance to a team of qualified HR experts.
Your Employees Keep Leaving
Good employees come and go all the time, but constantly losing good employees to competitors may be a sign that your benefits package isn’t motivating enough. To improve employee satisfaction and boost retention, your employee benefits package must be robust enough to meet your workers’ needs and wants.
A PEO firm can help you discover what your employees truly want and modify your benefits package to their requests.
Your Business Isn’t Growing
Managing HR matters internally as a small business means you may have to neglect some other important tasks, such as managing the company’s scope of work, daily action items, and employees’ work schedules. In the long run, this can hurt your business and prevent it from growing and thriving as it should. Partnering with a PEO firm can help you get the time and headspace you need to deal with critical tasks, manage your company’s core business, and focus on growth.
You Don’t Know If Employees Are Hitting Key Metrics
Productivity is important for every organization, but it’s even more important for small businesses that have to depend on their team members’ output. However, it’s easy to ignore signs of underperformance because of the hectic nature of running a business. Implementing an effective employee review system can help you track your workers’ productivity and discover areas for improvement.
PEOs have trained HR professionals who can set up an effective review system and handle employee engagement issues even when you don’t know you have them.
Your Employees Quit on Short Notice
Your employees quitting on short notice may indicate that your managers don’t know what your staff needs to perform well in their roles. They may also not know what makes your employees happy and satisfied with their jobs. When this happens constantly, employees may feel unmotivated and frustrated, which may lead them to seek employment elsewhere.
Keeping employees satisfied means showing that you care about their growth, setting up competitive benefits, opening up communication channels, and creating a positive work culture. All these things take time, but with a trustworthy PEO partner, you can take a step back from HR functions, knowing your staff is in the right hands.
Your Management Style Is Reactive
If your customers, clients, or vendors keep pointing out errors in your services or products you weren’t aware of, then you’re probably too busy to focus on how well your employees are carrying out their tasks.
This oversight can cause your customers to lose confidence in your organization and negatively affect profit in the long run. By partnering with a PEO, you can have enough time to monitor important day-to-day tasks and ensure your clients get quality services.
Satisfy Your HR Needs with ABO!
If you’ve seen any of the signs we’ve mentioned above, you may want to start exploring PEOs. That’s where ABO comes in!
At ABO, we help businesses meet their HR needs by tailoring our solutions to handle your unique challenges with less internal strain. ABO expertly handles compliance, employee recruitment, and other important HR functions that can help your company upscale.
Don’t let HR functions prevent your company from reaching its full potential. Reach out to ABO today to streamline your HR processes.
