| In this article we will review perhaps the most | | | | playing field. |
| comprehensive service offered by Professional | | | | HR Compliance: |
| Employer Organizations and Employee Leasing firms: | | | | This is the area of human resource services that most |
| Human Resources. | | | | PEO clients utilize often, and for very good reason. |
| For the purposes of this article, we split Human | | | | PEOs will help keep their clients in compliance with |
| Resources into two separate categories; the first is | | | | employment regulations such as ADA, EEOC, FMLA, |
| HR Best Practices, the second is HR Compliance. | | | | HIPPA, and ERISA, to name a few. |
| HR Best Practices refers to services that help | | | | To kick off a relationship many PEOs offer a highly |
| businesses get the most out of their employees, | | | | valuable service known as an HR audit, which is a |
| specifically, how to attract, develop, and retain quality | | | | proactive measure whereby they will review current |
| people. HR Compliance refers to complying with | | | | policies to identify and resolve HR compliance issues |
| employment regulations set forth by federal, state, and | | | | before problems arise. They will also review/create |
| city government. | | | | employee handbooks, and most PEOs provide a |
| Some employers, and this is highly related to what | | | | variety of trainings for employees to learn about |
| industry they are in, don't utilize HR Best Practices in | | | | discrimination and harassment in the workplace. |
| their business, and for the most part this is a matter of | | | | Employee relations is an integral part of HR |
| choice. For example, if you don't want to perform | | | | compliance, many PEO clients attest that if they are |
| employee performance evaluations, the Department of | | | | having an issue with an employee, they first consult |
| Labor is not going to come after you. | | | | their PEO before taking action or paying for an |
| Conversely, HR Compliance is not a choice; it's more | | | | attorney. This saves clients thousands on fees and |
| aligned with following the law than anything else. For | | | | can prevent much worse, an employment litigation |
| example if you know about and therefore don't | | | | lawsuit, which are on the rise. |
| comply with FMLA or ADA, you had better be | | | | What happens if you do get sued by an employee? |
| prepared to arrive in court sometime soon. | | | | Most PEOs offer EPLI Insurance, which stands for |
| HR Best Practices: | | | | Employment Practices Liability Insurance, with |
| Finding the right people: | | | | coverage ranging anywhere between $1M - $2M. This |
| Many Professional Employer Organizations provide | | | | policy will cover any legal costs and/or settlements |
| services that help with employee recruitment. They | | | | that arise from employee litigation. |
| help draft professional job descriptions, offer salary | | | | EPLI insurance is usually expensive for a small |
| tools to find the right level of compensation, provide | | | | business however for PEO clients it usually comes as |
| discounts for job postings online, some PEOs will even | | | | part of the package. Beware, there is usually a |
| help screen the inquiries you receive from ads. | | | | $10k-$25k deductible should this insurance have to kick |
| PEOs also offer interview training for management, will | | | | in! |
| help administer background & reference checks as | | | | Coemployment Factor: |
| well as drug screens. When it is time to hire, PEOs | | | | Coemployment in this case has the much more to do |
| deliver a professional employee enrollment kit that | | | | with HR Compliance than HR Best Practices. |
| rivals that of a Fortune-500 company. This is an | | | | Remember, the Professional Employer Organization is |
| excellent value for employees spread across multiple | | | | the employer of record for all of their clients' |
| states. | | | | employees. This means that HR Compliance is not just |
| Getting the most of your people: | | | | a service PEOs offer, it is in their best interest to |
| Professional Employer Organizations offer services to | | | | maintain compliance because any issue that arises out |
| help their clients motivate their people such as | | | | of non-compliance with a regulation, late payments, |
| employee performance reviews that can be | | | | workers comp claims, etc. rests firmly on their |
| integrated into policies such as employee milestones, | | | | shoulders. |
| promotions, and bonuses. They also offer various | | | | The downside of coemployment here is that PEOs |
| training seminars for managers to learn about | | | | usually have thousands of employees, which means |
| employee motivation, communicating with employees, | | | | they must comply with various regulations that only |
| supervising, coaching, etc. | | | | apply to large companies. For example, FMLA only |
| Retaining your people: | | | | applies to companies with 50 or more employees. |
| Many studies find that the most important factor | | | | Because the PEO must remain in compliance with |
| relating to overall employee satisfaction with their jobs | | | | FMLA, their work-site employees (all of their clients' |
| is the quality of their benefit plan. So although HR best | | | | employees) have rights to the provisions set forth in |
| practices and staying in compliance will help keep your | | | | FMLA, and this means the worksite employer (your |
| employees satisfied, there is no doubt that the benefit | | | | business) must accommodate this. |
| packages offered by PEOs are the strongest facet in | | | | This fact is often left out of the sales process, and for |
| retaining employees. In addition to medical plans, most | | | | some companies it is a serious concern. However |
| PEOs offer dental, vision, disability, and life insurance | | | | many companies find that by following regulations |
| plans as well nice add-ons like employee assistance | | | | aimed at protecting employees, it creates an |
| programs, and discount buyer clubs. | | | | atmosphere where employees feel more comfortable |
| For industries that are highly competitive in the | | | | with their workplace. The security large corporations |
| employee recruitment arena, especially those where | | | | offer to employees is now found at your small |
| the competition is comprised of huge corporations, a | | | | business, if employee retention is a company goal, |
| PEO is a great way for a small business to even the | | | | you're in a good place. |