A recent article by Shane Loftus published in Utah Business Magazine, “Choosing a Qualified PEO for Your Business,” brings up the concept that employees are arguably an organization’s most valuable resource. He points out that in order to continue to develop the organization’s culture and HR systems & processes, hiring a professional employer organization (PEO) can be a a great way to deliver proactive HR systems and produce measurable results for an organization.
When writing about the PEO’s affect on an organization’s HR systems, Loftus states:
“Employees are undoubtedly a company’s most valuable resource and a competent PEO will include a team of experienced, trained and PHR or SPHR certified professionals readily available to proactively assist with its clients’ needs. A solid HR solution includes a targeted approach to a company’s culture through the development and management of resources aimed to build and inspire employees. The key is flexibility and efficiency for you, the owner, while mitigating exposure and risk with government compliance and changing regulatory compliance. A qualified PEO will provide proactive HR systems and produce measurable results.”
However, not all PEOs are created equal; some deliver high-touch and customized human resource strategy and others deliver efficiencies in payroll and benefits administration. Therefore you should find a local PEO that works for your organization. You should find one that is able to customize its service deliverables to fit the needs of your organization.
PEO is a great solution for businesses looking for a competitive advantage. But, as you mention, not all PEO’s are created equal. Although a local solution is often better, in terms of pricing and logistics, it isn’t always practical. If a company has employees in multiple States, then I regional or national PEO might be a better solution as the PEO must be licensed in each State they have work-site employees.