Benefits of Partnering With a Local PEO

Posted: Updated:

Exactly how much time does your company spend on HR-related tasks? An infographic from TotalJobs.com shows that, on average, HR teams spend a combined 50.7 percent of their time on three non-HR-admin areas within a business: meeting with senior staff and business partners, employee relations and engagement, and meeting with employees. While these areas are arguably important to moving the business forward and making sure employees are happy, this means essentially half the remaining HR staffs' time is being spent on admin-related tasks. With the number of hours that go into HR admin-related tasks, more and more companies are turning to professional employer organizations as a solution.

Once your company makes the decision to outsource your HR needs by partnering with a Professional Employer Organization (PEO), the question still remains: is it more beneficial to work with a local or national PEO? Based on our hands-on experience with this very topic, allow us to share why choosing to engage with a local PEO is the way to go:

Knowledge of local compliance laws

There are more than 180 federal employment-related laws for companies to comply with. On top of that, each state has many of its own employment-related laws. Hiring, taxes, insurance claims, wage claims and benefits – the laws are complicated and plentiful. Joining a local PEO ensures the utmost understanding of the local laws and regulations related to employment, in addition to the many national laws. State laws are constantly changing and updating, so you need to look for a local PEO that has a deep understanding of these local compliance laws.

More time for customers

Local PEOs provide the advantage of being directly available to their customers, and therefore more flexible with their service offerings. While national PEOs tend to be bigger and work with clients across several regions, a local PEO tends to be smaller and more accessible. This means your employees have easy access to in-person onboarding, they can get their benefit questions answered in a timely manner, and you as the employer will experience faster turnaround time on documentation and payroll-related issues.

Local marketplace expertise

When you join a local PEO, knowledge of the local marketplace is a major advantage. Your local PEO will be on the ground with you. This means you can be sure your employees are being provided with the best benefit package options available in your local area. National PEOs are not likely to have the same understanding of these local benefit options. Keep your PEO partnership local and your employees will thank you for it.

According to a report from IBISWorld, the PEO industry is expected to experience consistent growth over the next five years. While these growth statistics demonstrate that outsourcing HR needs through a PEO is a trend that is here to stay, there is still a lot to consider when deciding whether to join a local or national PEO. It’s not hard to see why local is the way to go.

Matt Thomas is president of WorkSmart Systems Inc.

  • Perspectives

    • Investing Lessons from Mount Elbert

      With little mountain-climbing experience under any of our belts, a few friends and I decided to take on Mount Elbert, Colorado’s tallest mountain. While regular climbers may not consider this “Gentle Giant” a tall task, it was for us inexperienced climbers.  Is investing your “tall task”? If so, you can learn a lot from our experiences. And you won’t have to climb a mountain to do it!

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • ‘Potential’ Fueling Downtown Makeover in Fort Wayne

      As Fort Wayne prepares to christen its latest big downtown project, Mayor Tom Henry says there are no signs of transformational development slowing down in the state’s second largest city. The Landing, a $34 million downtown redevelopment project, is expected to officially open soon, one of an estimated 14 projects that Henry says can help Fort Wayne become a destination city. Since the opening of Parkview Field more than a decade ago, Henry says momentum has...

    • New study reveals best place in Indiana for young families

      And the Best Place for Young Families Goes To...

      What do you look for in a community when deciding where to start a family and raise your children? There can be several factors to weigh in making a sound decision. Housing affordability. Unemployment rates. Quality of education. Mortage website Lendingtree.com has released the results of a study pointing to the best places for young families in Indiana.

    • (image courtesy of WPTA TV)

      Indiana Plants Impacted by UAW Strike

      The United Auto Workers union, which totals approximately 49,000 workers at 33 General Motors Co. (NYSE: GM) plants nationwide, went on strike at midnight. The strike affects workers at GM plants in Fort Wayne, Bedford, Marion and Kokomo. The Fort Wayne plant, which assembles full-size pickup trucks, employs about 4,500 UAW workers. Our partners at WPTA-TV in Fort Wayne report several hundred were seen on the picket line throughout the day. In all, about 7,000 UAW...

    • Photo courtesy of Bristol Parks

      Startup Plans to Add 250 Jobs By 2021

      A metal forming startup is seeking to use a facility in Bristol that has been empty since 2017 for a major manufacturing operation. The Elkhart Truth reports Brinco will invest $52 million in the project and add 250 jobs.

    • Diamond K Sweets Fudge O'Bits

      Spencer Confectionery to be Featured on QVC

      Spencer-based Diamond K Sweets will feature their trademark product this fall on QVC. The company's Fudge O'Bits Holiday Bundle will soon be offered to QVC shoppers, which features its company's top  four selling flavors of fudge.