Creating a benefits package can be a tricky and time-consuming task for employers because it involves finding out who should be protected and receive benefits. In addition, employers need to determine how much choice employees have among the benefits and figure out how benefits will be financed.
Instead of employers dealing with the stress of creating a benefits package, PEOs can help lift the burden of benefits off of employers and do the tedious work for them.
Dealing with benefits can be stressful for employers. If leaders are spending hours communicating and negotiating with multiple vendors to create a benefits package, answering benefits-related questions, and making changes to existing benefits, it takes away time that employers could be spending on growing their company.
When you work with a PEO, there are experts who will take care of all the benefits related functions for your company. For example, if you have an employee that wants to add a dependent to their health plan, a benefits expert from the PEO will take the responsibility of making sure that happens. PEOs will handle all of the administrative tasks associated with benefits such as enrollment, claims processing, and compliance. Employers already have enough on their plate as it is, so having experts take care of all the benefits related work gives employers one less thing to worry about.
Access to better benefits
Because a PEO is able to pool companies together to increase buying power, they help small employers gain access to a variety of benefits options that they may not have been able to provide to employees otherwise. To stay competitive, businesses of all sizes must offer diverse and unique benefits. Working with a PEO allows small businesses to have access to employee benefits that are typically only available to larger companies, which can help you attract the best employees and reduce turnover.
Many small businesses are not able to offer competitive benefits simply because it is too expensive. The fewer employees a company has, the higher rates are for benefits, so it can be difficult for small businesses to afford certain benefits.
However, working with a PEO allows smaller businesses to access similar rates as larger companies, which makes benefits more cost effective. Some benefits may even be available to offer to employees at no additional cost to the employer.
By working with a trusted PEO, employers can free themselves from the administrative burden of benefits management, enabling them to focus on what truly matters. Working with a PEO also allows companies to access better benefits for lower rates. This will help attract and retain employees and keep your company competitive.