Businesses all around the world have essentially been operating in crisis-mode since the beginning of 2020.
From mandatory closures to continuously evolving regulations around workplace safety, the past year has been a major test of endurance, stability, and pure grit – and it continues as we head further into 2021.
New research from McBassi & Company shows that businesses that partnered with a professional employer organization (or “PEO”) since the onset of the COVID-19 pandemic are 91% less likely to be temporarily closed, and 60% less likely to have permanently closed. Much of this can be attributed to a PEO’s role in helping businesses maintain compliance with complex local, state, and federal regulations. The ongoing pandemic only further highlights the value of partnering with a PEO, especially as compliance becomes a larger challenge for businesses.
Rather than a replacement for an HR department, a PEO serves as an extension of it. A PEO works with internal HR professionals and management to help manage critical HR functions on behalf of businesses of all kinds, including risk and compliance.
Liability to the Experts
A PEO shares a co-employment relationship with its clients, which means clients are relieved of many of the liabilities typically associated with operating a business. Partnership with a PEO shifts all that risk over to the PEO, but it’s important to choose the right one – only 1% of PEOs maintain all three industry certifications that demonstrate financial stability. Be sure to partner with a PEO who maintains these certifications; doing so will fully protect your business in a worst-case scenario.
A triple-certified PEO automatically absorbs a number of liabilities, while working to ensure each client maintains compliance with host of local, state, and federal laws – many of which may be specific to a particular business.
Keep Current with Compliance Changes in Real-Time
Non-compliance can be costly or even detrimental to businesses, so it’s best to leave compliance to the experts. Whether your business is fully remote or struggling to maintain an on-site workforce, a PEO can provide essential advice and guidance to help your business adapt to a new normal. A PEO makes it easier for businesses to navigate difficult questions surrounding the pandemic, such as vaccine requirements or accommodations for employees with disabilities.
With a PEO, businesses are armed with the support of certified specialists who work around the clock to keep up to date with all policy changes as they happen. They handle all the administrative work required to keep the business compliant, saving your business both time and money.
Even day-to-day HR compliance can be overwhelming. With a global health crisis thrown in the mix, the mass confusion surrounding compliance is understandable. As we look work through another year with no end to the pandemic in sight, it’s more important than ever for businesses to consider the support of a PEO.