Running a small to medium-size business? See if this scenario sounds familiar:
You’re doing pretty well, hitting some of your growth goals, and you have a relatively happy staff. But you’re feeling a little stressed about getting all the HR admin done correctly. And as you bring on more people, you’ve begun to realize that growing your business is more complicated than you thought it would be.
Maybe you’re even starting to feel a little nervous you’re not dotting all the i’s and crossing all the t’s regarding HR matters—but you’re unsure where to turn for help. (Not to mention that you’re unsure about whether or not you can afford to have someone help!)
We’ve heard your story before, and we’re happy to say—there’s a good ending in store for companies like yours who take the chance to grow and scale by partnering with GenesisHR, a professional employer organization (PEO).
What benefits will you experience by choosing to grow with a PEO? Take a look!
11 PEO Benefits For Medium & Small Businesses In Growth Mode
1. Your HR problems get resolved in a timely and satisfactory manner.
Before your PEO partnership, you’re either scrambling to answer employee claim questions yourself, or sending your employees the numbers or email addresses to various discordant vendors to take care of problems on their own time. This method is a good way for your employees to feel dissatisfied with the benefits you offer.
With a PEO, that all changes. At GenesisHR, we shoulder employee claims administration and conversations for you and your whole team. If you or one of your employees has a question, we will connect you with a team member who understands the situation and can quickly help to address the issue. This leads to increased employee satisfaction, and keeps your team focused on their jobs.
2. Your employees enjoy (and understand!) top-tier benefits options.
Benefits are complicated. Whether you’re offering health insurance, HSAs, FSAs, (and any other acronym!), the associated rules and regulations can be overwhelming for a manager who’s not living in the day-to-day world of benefits administration. GenesisHR proactively provides that education, so you and their employees can make good choices and maximize the value of their benefits.
Without the education piece, employees are unlikely to participate or get the full value of the benefits your company offers. Ensuring your employees understand their options shows you value them, and care enough to offer comprehensive, top-tier benefits that will enhance their lives.
3. You enjoy a smooth and consistent annual renewal process.
When it’s time for annual renewal, many small business owners who aren’t partnering with a PEO panic—it’s a huge undertaking to figure out options, renew benefits plans, and decipher whether or not you’re getting coverage that your employees expect.
Working with a PEO squashes the stress of annual renewal because we take care of the process for you: We provide options for insurance, explain differences in participating under a PEO-sponsored plan or a client-sponsored plan, and, of course, provide step-by-step guidance throughout renewal time.
A note on annual renewals: We always recommend GenesisHR-sponsored plans, because the products are better than what small and mid-sized businesses are able to get for themselves in the open market. GenesisHR is able to offer many more plans, whereas, if you’re going the DIY route, you can only get two or three plans—and oftentimes, they’re not great!
4. You’ll pay less for benefits over the long term.
To be frank, you won’t pay more to partner with us. In fact, one of the biggest PEO benefits is that PEO-sponsored benefits plans are more stable than small business/small group markets year-over-year. Typically small group markets incur significant volatility—some years a 3% increase, some years a 27% increase!
For small businesses, your year-over-year benefits budgeting and planning is more predictable, which means you won’t encounter any surprise increases that your business may not be equipped to handle.
5. You’ll spend more time growing your business, and less time administering benefits.
Here are some tasks you won’t be saddled with once you start working with GenesisHR—because we’ll handle them!
- Receiving and checking invoices
- Identifying and capturing invoice adjustments
- Paying invoices on time
- Helping with monthly changes in plans for new hires, terminations, employees with life events, etc.
- Providing plan documents and summaries to participants
- Handling lost ID cards
- Dealing with COBRA and related compliance requirements
Absent a PEO, you must handle all these tasks on your own, correctly, every month. For small businesses, this is a huge misallocation of time and talent that may be keeping you from doing what you do best—running and growing your business. When you choose to redistribute these tasks to a PEO, we step in and take these away from you completely. (And this is by no means an exhaustive list—just ask our customers who previously had to manage HR on their own!)
6. You and your employees have access to an easy-to-use software platform.
When you’re looking for a PEO partner, be sure to inquire about their technology capabilities—starting with these four questions.
The GenesisHR tech platform is modern and simple to use:
- Entering payroll directly into our system is easy—the software takes care of the math for you with cells you can populate yourself, or auto populate and enter only by exception. We offer customized time sheets for each client. You use whatever timekeeping system works for you; we will upload that information to save you time with data entry. If you don’t currently have a timekeeping system, you can use our fully integrated system.
- We offer a mobile-friendly onboarding and benefits experience. Our web-based platform allows employees to log in from anywhere, with no need for paper forms. Employers can also complete forms, including the I-9, digitally.
- Our software pushes PTO information directly into the payroll, creating a user-friendly workflow for clients that minimizes mistakes.
7. Your business remains compliant with employee benefits regulations.
If your small business’ employees work 30 hours a week or more, your PEO partner should have systems in place to identify any employees who are benefits-eligible. This is a crucial part of your business, but it’s also complicated and takes considerable time and constant oversight to get right. (Not to mention that penalties for doing it wrong are stiff!)
Learn more about employee eligibility and why it matters here:
Free white paper: Hourly or salaried? Exempt of nonexempt? Are you correctly classifying your employees?
8. Employees benefit from a well-managed, compliant 401(k) retirement plan.
Deciding to provide a 401(k) retirement plan is a big deal because, as the employer, you take on fiduciary responsibility. A PEO shoulders most of that responsibility—that means oversight and investment options diverse enough to meet a quality standard of performance. Your PEO will also handle all notifications, testing, audits, etc.
9. Small employers benefit from their PEO’s required 401(k) audit.
Employers in a PEO partnership have peace of mind that their retirement plans are in good hands because they get the added benefit of belonging to a larger organization that is audited annually. And that’s a good thing!
Small businesses with fewer than 100 employees are not required to have an audit. But what if there are mistakes, even unintentional ones? If they’re not caught, it could be harmful. Large group plans, like those offered through a PEO, must be audited—which means your PEO partner will catch any mistakes before they turn into big issues.
10. Leaves of absence administration becomes a smooth and seamless process.
If you’re a small employer, you may offer short-term disability and be located in a state where paid leave is a state law. Handling a leave of absence is already complicated, and adding legal requirements to the list can feel downright overwhelming. As more states enact paid leaves, employers must figure out how these complex systems operate (who pays first—the state or private insurance?), and how to navigate them correctly. Now, compare this to a PEO relationship, where a PEO manages all this for you. It’s easy to see why PEOs are essential in these situations.
11. Your business reaps the benefits of vendor relationships without having to manage the details.
Absent a PEO, small and midsize organizations must make and manage relationships with numerous vendors and partners. When you hire these vendors, you have to reach out, add your new employee, handle communication, manage annual renewals—and the list goes on.
In a PEO relationship, these tasks aren’t on your to-do list anymore! GenesisHR manages all these benefit partners for you, saving you a huge amount of time and effort. That’s time you reclaim, and can use in better ways.
Find out how our PEO benefits your business.
We’d love to go over your organization’s goals and HR pain points and see if we might be a good fit. Get in touch with us today to get started. You’ll be glad you did!