Understanding The Concept In Using A PEO Company To Lease Employees
If you manage a business that is just getting started in expanding its presence to your customers, you may find you are in need of additional employees to help handle the tasks involved with the company's newfound growth. Many companies find that leasing employees through a professional employer organization (PEO) is beneficial in many ways during this time. Here are some tips to use when leasing employees rather than hiring them permanently on your own.
Find Out What Services Are Included To Determine Cost Effectiveness
When a company hires employees through a professional service, the PEO service will have several options available in proving benefits for these people. Find out which of these options are available before making a final determination on which company to pay for the leasing of these employees. Services offered include insurance, workers' compensation, payroll services, training sessions, and retirement planning. Since these are handled through the PEO service, additional employees would not be needed to perform the duties involved in providing help to the hired workers. This can be beneficial in allocating some of the expenses the business pays for employee help.
Get The Bottom Line On Pricing Before Signing An Official Contract
It is important to get a detailed list of the services offered to hired employees before signing a leasing agreement. Some companies will bulk the services into the pricing, making it difficult to determine exactly how much of the cost goes toward the services themselves. Having the company break down the expense by employee can help you decide on whether the cost is worth the benefits provided for these people. It is better to go with a service that offers a per employee cost rather than paying a price determined on a percentage of the payroll money allocated for their work.
Know Which Responsibilities Are Yours And Which Belong To The PEO Company
A PEO company would be responsible for any money needed for compensation due to an injury on the job, making the liability much less on the business itself. Since they handle equal employment matters and tax information, the business will not need to focus on human resourcing concerns. The business will be responsible for hiring and firing of employees as well as general business related policy practices. If you do not feel comfortable with handling this part of the employee maintenance, look for a PEO company that offers these services in addition to the legal aspects of the workers' performance.
To learn more about employee leasing, contact a company like Tailored Solutions.