Who is a Candidate For a PEO?
Virtually any small or medium-sized business that does not employ a full-time human resouces and payroll person is an excellent candidate for a PEO. That being stated, even companies that do employ a human resources or payroll person can be excelent candidates for a PEO arrangement. This is because of the tremendous time and energy required to perform all of the tasks that come with employing people in a business.
There are several types of companies, with or without HR personnel, that are good PEO candidates. Consider companies that:
- Are unable to devote all of the time required to their core competency because of all of the time they spend on administrating employment-related tasks.
- Use multipe vendors for their payroll, benefits, 401(k) plan, short and long-term disability plans, etc.
- Have no negotiating leverage due to their size or type of business they are.
- Have do-it-yourself HR departments that are undermanned or underskilled.
- Are unable to offer affordable 401(k) plans.
- Pay the highest health insurance rates.
- Require a dedicated human resources person but cannot afford to employ one directly.
- Are losing good employees to their competition due to the strength of their competitors benefit offerings.
- Are unable to hire top-notch heath due to the high cost of their employee health insurance plan.
For more information on the benefits to both employers and employees of a PEO arrangement, please see:
Why Would a Business Use a PEO?
How Do Employees Benefit From a PEO?
or contact Select Management. Simply call 1-800-390-4620 ext.106 to speak with a representative today. You can also contact us here.