PEO Myths and Realities: What You Need to Know About Joining a PEO | WorkSmart Systems is a Professional Employer Organization (PEO)


PEO Myths and Realities: What You Need to Know About Joining a PEO


Deciding to partner with a Professional Employer Organization (PEO) can help you keep HR costs low, offer superior benefits to employees and reduce your risk. This all sounds great, but if you’re like other business owners considering partnering with a PEO, you likely have plenty of questions and maybe even some concerns.

How do you separate myth from reality? Let us debunk some common myths so you can see if a PEO will be the right fit for your business.

Myth 1: I’ll lose control of my business.

You worked hard to develop that very specific vision for your company and the last thing you are interested in is having someone else come in and call the shots. Understandable!

You might be surprised to learn that a PEO actually gives you greater control of your business in a number of ways. PEOs enable you to streamline communication across HR, payroll, risk management and benefits, which ultimately frees up more of your time to focus on revenue-generating projects. A PEO will take care of many of your human resources administrative tasks, compliance needs and other duties, and you can focus more on your day-to-day operations and give more attention to your customers.

With a PEO, you won’t be bogged down with payroll processing or researching the newest payroll legislation. Your PEO team of HR specialists will take care of that for you, making it easier for you to make efficient and well-informed business decisions.

Myth 2: I’ll have to lay off my HR manager or team.

Many HR professionals have more projects than they can accomplish. You just might find that your HR department finally has time to dedicate to strategic projects once they have a PEO handing the administrative responsibilities. The PEO partnership allows more time for your HR team to pursue more strategic projects they’ve needed to work on, but haven’t been able to because they have been too busy writing job descriptions and creating employee handbooks.

A PEO and your HR team will work together to tackle administrative tasks and compliance issues, as well as strategic projects that otherwise get pushed to the bottom of the to-do list. For example, your HR team can now move forward with implementing new training opportunities for your employees, which ultimately works toward the success of your company.

Myth 3: I will lose the power to decide who gets hired and fired.

When it comes to hiring and firing, your company maintains the power in making those decisions when partnering with a PEO. As you make hiring decisions, your PEO can assist with writing job descriptions, reviewing applications and training new employees, which can make the recruitment process run more effectively and efficiently.

When it is time to fire an employee, a PEO protects you from rising unemployment taxes, if an unemployment claim is filed, by taking care of all of the details. Essentially, a PEO can help your company with employee recruitment and limit financial risk in a shorter amount of time than it would take you to do it yourself.

Myth 4: My employees won’t embrace the change.

 By nature, a PEO should enhance your company culture, not change it. Your employees will appreciate access to a Fortune 500-level benefits package, including health insurance, retirement and other benefit plans, and they still get to work for you.

All in all, partnering with a PEO can free up time in your office that can then be dedicated to enhancing your workplace culture and creating a more engaged and productive team.

Ready to work with a standout PEO? Learn how WorkSmart Systems can help take your business to the next level.

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