To grow your business, you must take care of the people that work for you. Employees are most interested in getting a competitive payrate, getting paid on time and correctly, and receiving the best reasonable benefits you can offer them. Moving up to a PEO or an EOR ensures that you are taking care of your people by offering them the best benefits at competitive rates and giving them access to their financial information via a personalized on-line dashboard. A PEO/EOR is taking care of you by making sure you are compliant with all state and federal labor laws, saving you time on employee management, and giving you the tools to make better business decisions.
So, when you are ready to:
- Help a client expand
- Add internal staff
- Open a new office
- Start a new division
- Offer better benefits while containing your cost,
think about making the move to partnering with an EOR or PEO.
Any of the above moves would require accounting and HR involvement, time requirements from existing staff or adding more staff, and financial support. PEO and EOR professionals can help with your next growth initiative.
How do you choose which is the best business partner to help achieve your goals?
EOR – Employer of Record
- Helps add contract staff working in multiple states without adding any financial burden.
- Add additional revenue stream while providing services to an existing or new client.
- Back up support for contract staff – onboarding, weekly payroll, invoicing, collection management, and payroll funding.
- Workers’ comp coverage and benefit packages for contract workers on assignment.
- Set up to do business in other states without you having to set up corporate accounts to withhold taxes or cover unemployment claims for contract workers.
PEO – Professional Employer Organization
- Provides tools for talent management, personalized guidance to recruit talent, and competitive compensation programs.
- Offers benefits to your internal staff and contractors on assignment.
- Processes your payroll, manages deductions, tracks time, streamlines employment verifications, onboarding, and PTO approval.
- HR support, technology, training, and compliance.
- Tracks metrics on performance, engagement, tenure, and turnover.
- Provides risk management, workers’ comp coverage, claim resolution, employee handbooks, and employee termination assistance.
The main difference between an EOR and a PEO is the legal responsibilities for the worker. An EOR becomes the legal employer of the contractors you have out on assignment while working with a PEO you enter into a co-employment relationship, which means you have shared responsibilities for legal and compliance issues. Some contracts or MSA’s (Master Service Agreement) require that the entity signing the agreement must remain the legal employer and cannot outsource this responsibility. In this case working with a PEO is better. A PEO looks at the larger picture of providing services to the entire workforce. In the scenario that an entity is more focused on hiring contractors to help supplement their workforce and wants to separate these workers from their internal staff, an EOR is a better solution.
In both scenarios you receive help with employee onboarding, time collection, payroll processing, HR support, and compliance issues. Your time and resources are freed up to concentrate on the main objectives of your business.
If you would like to discuss any of these ideas or would like help defining a business strategy, please feel free to give me a call or contact me at judy@jcsrllc.com, or visit my new website at https://www.jcsrllc.com for more information.
