Your employees are your top asset, especially in such uncertain times. Now more than ever, you need top talent to successfully steer your business to the next decade and beyond. With the world changing so rapidly, it’s vital for employers to invest in their people in hopes of building a more sustainable future.
Employee benefits play an integral role in employee satisfaction and retention. A Hierl Insurance study from 2018 indicated that health insurance is “very or extremely important” for over 80% of employees when changing jobs. Amid current public health concerns, benefits like medical, life, disability, and supplemental insurance are even more crucial in employment decisions.
Small and mid-size businesses (SMBs) often struggle to offer their employees benefits like top-tier health insurance plans because the costs for such benefits are too expensive when these companies approach the marketplace on their own. Since SMBs have fewer employees, they have less purchasing power than large enterprises, which leads to higher prices per employee.
A PEO (or “professional employer organization”) is an organization that serves as a partner to SMBs, stepping in to provide support with essential HR functions like payroll administration and employee benefits management. A PEO essentially acts as a “co-employer” of all its clients’ employees, which makes it possible for the PEO to administer paychecks and perform other administrative HR functions on behalf of its clients. When it comes to employee benefits, a PEO combines the purchasing power of all its clients to offer the best possible rates on top-tier plans, enabling SMBs to provide employees premium coverage options while reducing overall costs.
By partnering with a PEO, SMBs can give their employees access to a wide range of medical, dental, vision, life, disability, and supplemental insurance plans from leading insurance providers. A PEO also enables SMBs to offer additional employee benefits like commuter benefits, travel discounts, and exclusive access to local entertainment.
Beyond simply reducing the costs for various employee benefits, a PEO also helps SMBs manage the administrative processes associated with them. From enrollment paperwork to ensuring proper compliance and educating employees on their benefit plans, a PEO provides valuable support in making sure your employees are covered and aware of all the great perks available to them.
As technology becomes more deeply integrated into your employees’ daily routines, they’ll also expect innovative ways to digitally connect and manage their benefits. A PEO equips SMBs with all the technology platforms their employees need for digital self-service, making it easy for them to view their benefits and instantly connect with their providers.
Employee benefits are a major employer responsibility, so it’s a good idea to ensure you partner with the right PEO to manage it all. Only 1% of PEOs are ESAC accredited, IRS certified and Workers’ Comp Risk Management certified – these certifications demonstrate a PEO’s financial stability and adherence with strict regulatory standards that guarantee its ability to take on financial responsibility on behalf of your company.
It’s more important than ever for SMBs to invest in employee benefits. Working with a PEO makes it more affordable and offers employers greater peace of mind. Combined with the dedicated one-on-one support of an entire team of certified HR professionals, partnership with a PEO is one of the most cost-effective ways for SMBs to enhance employee benefit packages, increase employee satisfaction, and build a stronger business. Contact us to learn more.