Modern-day Small and Medium Enterprises (SME) employers face a plethora of challenges that cause hindrance to their business’ success and growth. One domain that has been increasingly burdensome than others is HR. HR Managers are faced with “wearing multiple hats”, handling everything from daily transactional HR issues, recruitment needs, negotiating and overseeing employee benefits, approving payroll, and keeping up with the ever-evolving employment laws and employees’ expectations that make human resource management a complex task. This leaves little to no time to focus on valuable areas such as employee engagement, retention, and improvement of the company culture.

Thus, SMEs have been turning to professional employer organizations (PEOs) to solve their HR-related issues.

If you are a business facing any or all of the five issues we are going to discuss in the blog, it may be time to seek help from a Professional Employer Organization partner to streamline your business.

Five Signs It’s Time to Hire a PEO Partner

1) Rising Costs of Employee Benefits

One of the common concerns for small to medium-sized enterprises is the growing costs of employees’ benefits and health insurance, especially as the healthcare costs in the US have soared to record highs causing massive headaches for SMEs and their employers.

Hiring a PEO can help you secure exceptional benefits with controlled costs for your employees.

2) Restricted Business Growth

Modern Human Resources Management is complicated; no wonder it requires both time and effort to execute and perform wide-ranging HR administrative tasks. This leaves less time for business managers and leaders to focus on other productive activities, hindering the company’s growth.

By partnering with a PEO, you can outsource your HR responsibilities and have spare time to invest in other productive operations of your business. This will also provide you access to experts in the HR and compliance arena.

3) Recruitment and Retention Issues

Regardless of the size of your organization, attracting and hiring top talent is a constant challenge. Similarly, to retain your best-performing employees by keeping them engaged with lucrative benefits also requires significant effort.

If you are unable to find the right formula to hire the right workforce and your best talent is leaving for better opportunities, it is time to get help from a PEO. Not only will they help you offer fortune-500-level benefits to retain your employees, but also great assistance in recruitment while reducing employees’ turnover.

4) Poor Employee Engagement

Employee engagement and experience is another area where a company struggles. While larger companies can afford to invest heavily in employees’ engagement activities, SMEs are not that fortunate.

HR solutions such as PEO will give your company access to state-of-the-art employment engagement tactics and tools such as high-quality benefits, personalized HR services, and learning and development programs.

5) Struggle with Employment and Compliance Laws

Every year, there are changes introduced to employment laws. And these days, these changes can occur monthly, or even weekly. Thus, as an employer, you must stay on top of the latest developments to stay compliant with the laws.

While it may not concern larger corporations, small to medium-sized companies usually lack in-house resources to keep up with the local, state, and federal law changes. Working with a PEO will give you access to their risk management experts, who will be able to minimize your employment and compliance-related risk.

Time is Money – Literally

So, if you are a business owner or leader struggling in any of the areas mentioned above, a solid PEO partner can help you nip them in the bud. Not only will they provide best-in-the-business HR solutions but also free up your time and energy to focus on other valuable domains within your organization for consistent success and growth.