Startups have an interesting quandary. They have to be competitive from the beginning, but without the resources it generally takes years to build. How can they grow, keep costs under control, and maintain a competitive edge during the startup process? A PEO, or professional employer organization, is the perfect option for startups, because an established PEO can get a lot more done less expensively and more effectively. How can your startup benefit from hiring a PEO?
A PEO Can Help You Build Your Employee Base Quickly and Affordably
A PEO can help you get qualified, experienced, knowledgeable workers in the door quickly without all of the time, expense, and hassle of advertising the position, interviewing scads of candidates, and making an informed decision on the fly. Startups usually have periods of peaks and valleys when it comes to growth — sometimes needing to add lots of workers in a short time, and sometimes going months without adding a new position. A PEO can help startups manage this process effectively.
A PEO Can Lure Workers With Top Benefits for Less Cost
When your competitors can offer great insurance plans and employee benefits packages, how can you lure great workers to your startup? A PEO can set up excellent benefits plans that attract the top workers in your industry. The best news is that PEOs can get bulk pricing structures for these products, keeping your costs down. Additionally, the PEO can often get insurance plans in place within hours, not weeks like most insurance companies you would deal with directly.
A PEO Keeps Your Staff Productive While Building the Worker Base
All the time it takes to secure benefits, find and hire workers, and draw up good policies and procedures reduces the amount of time your employees spend doing actual work. For a startup, this means a delay in growth and earning profits. A PEO takes all of this work off your employees’ shoulders and gets these things done while your workers crank out productive work.
A PEO is a Great Way to Limit the Startup’s Liability
Startups are already facing tons of liability issues, and adding on worries about liabilities of hiring and firing practices, workers’ compensation insurance, and regulatory compliance is just overwhelming. With a PEO, you transfer much of this liability to the PEO, meaning your new business is off the hook for most of the issues that could come up.
A PEO Gives You Access to Professional HR Workers Before You Can Hire Some
The ability to be competitive means knowing the in’s and out’s of the industry before you are able to hire knowledgeable HR professionals or acquire the knowledge yourself. Hiring a PEO gives you instant access to professionals in hiring practices, insurance policies, and other such issues immediately. This means you are operating at the level of your established competitors the day you open your doors for business.