Running a small business is tough. According to government statistics, during the first five years, 50% of small businesses fail. So, how can you increase your chances of success?
Small businesses that utilize a Professional Employer Organization (PEO) are 50 percent less likely to go out of business. They also grow seven to nine percent faster than those who do not use a PEO, according to the National Association of Professional Employer Organizations (NAPEO). When you partner with a PEO, you can substantially reduce the overhead associated with human resources, payroll administration, and benefits. What this means to your business is a higher rate of growth and a better chance at success.
The best way to grow your business is to allow more time focusing on strategy, cultivating customer leads and nurturing your business relationships. When you use a PEO, instead of contributing in-house resources on HR administrative tasks, you can invest that time in essential tasks inherent to your HR strategy.
The employee turnover rate for PEO clients is 10 to 14 percentage points lower per year than that of comparable companies. Partnering with a PEO allows you to take better care of your employees, giving them more reasons to stay loyal to your company.
What can an effective PEO do for your business?
Here are four key services they will offer:
- HR and Personnel Administration: Instead of your business having to fund an entire in-house HR department, PEOs can take over payroll administration, manage your workers’ compensation, and help keep your business up-to-date and compliant with the latest state and federal laws.
- Payroll & Tax Administration: Imagine not having to devote hours each day to payroll administration and dealing with employee benefits. A good PEO can handle the calculation, preparation and distribution of payroll checks; reporting, withholding and remitting payment of payroll taxes; employee deductions, including garnishments; and preparation of payroll reports.
- Employee Benefits Administration: Adequate employee benefits are one of the keys to retaining the best employees. PEOs can handle the administration, reconciliation and payment of employee health, dental and vision plans, as well as many other employee benefits such as 401(k), IRA, or other retirement plans.
- Risk Management and Workplace Safety: Employee safety is a key priority for a growing company. A good PEO will provide professional, certified safety managers that will come on-site to inspect your safety environment and make recommendations on how to improve it.
When it comes to growing your business, the best thing you can do is hire a PEO. At Delta Administrative Services (DAS), we understand the time and monetary burdens of everyday business administration. By partnering with our team of experts, you can focus your time and resources on the growth of your business, while we do the rest.
To learn more, call DAS today at 504-274-3400 or visit our website, www.deltapeo.com.
The relationship between a Professional Employer Organization (PEO) and its client is essential to the success of a co-employment arrangement. The responsibilities of a PEO make relationship building critical to the development of an effective human resources strategy. Good PEOs help move the needle on business growth, making their insight and advice on matters beneficial to the clients they serve. Of the countless services provided by a PEO, the team at Delta Administrative Services (DAS) found that the sustainability of manager-employee relationships, training, managing documents and the implementation of employee policies and regulations are key HR areas growing businesses should focus on.
Since opening its doors, DAS has worked with companies across the Gulf Coast as an HR outsourcing provider. Over the years, the DAS team benefited from, as well as educated, business leaders on ways to strengthen employee relations, hire highly-skilled employees and stay in compliance with employment laws. Here are three key take-aways that have helped DAS honed its skills in the HR industry:
#1 Enforce Equality in the Workplace. The employer/employee relationship can be complicated. At times, it is difficult for employers to exemplify fair and equitable treatment to their entire staff. Because employers interact with their employees daily, they often develop a close net, family-oriented rapport. However, there are times when an employer makes accommodations for one employee and not others. DAS’s responsibility as a PEO is to encourage the development of rules of engagement between employers and employees and to help maintain the client’s mindset in work and compliance mode rather than friend and buddy mode. Although it can be a struggle to ensure that employers steer clear of this behavior, a PEO’s mission is to work towards providing companies the skills and knowledge needed to avoid potential employment conflicts.
#2 Build Good Relationships First. Deciding to establish a co-employment arrangement with a PEO is an important decision to make. Handing over confidential information and trusting the PEO to implement an effective HR strategy is critical to long-term business success. A key take-away from DAS’s interactions with its clients is the importance of establishing a strong business-to-business relationship. The team’s experience, after many years in service to the business community, is to first, create an environment that ensures trust and promote collaboration.
#3 Documentation is a Wonderful Thing. Good documentation is critical to an HR department. Written and retained records of employment events, company policies and HR practices are instrumental to implementing the HR process. Tips for documenting disciplinary action is one of many insights the team at DAS has educated clients about. To avoid the mishandling of documentation for disciplinary actions, DAS recommends the following tip to management team members who often are required to provide verbal warnings to employees: During or immediately following a disciplinary meeting with an employee, email yourself the details of the meeting and copy the employee. Be sure to have them reply to you. By doing this, you will have a timestamp and the employee’s acknowledgment.
PEOs play an important role in a company’s HR team development. However, as the industry evolves, finding new ways to handle personnel challenges is the key to future success.
To learn more about Delta Administrative Services visit www.deltapeo.com.