Unfortunately large companies have an unfair advantage over average businesses. They buy stuff cheaper, have better technology and bigger marketing budgets. These things can make it hard for any business to compete. But everybody knows that great employees is the one thing that still tilts the playing field in your favor.
It’s no secret that cheaper employee health benefits makes it more realistic to offer them at no-cost. Great benefits are often the extra glue that bonds a business with it’s employees. Every company wants benefits that will entice the right people and retain the best employees. The problem is that big employers can always offer cheaper and better benefits than you. So what can you do? There has to be a way to combat this trend and keep your best employees from being poached by the big boys!
Wouldn’t it be nice if you could just ‘rent’ from a big company when it came time for HR and benefits? That way you could focus on growth while your in house HR department found you the best benefits and the best prices. Well that’s exactly how a Professional Employer Organization functions.
A PEO handles all the benefits and the seemingly endless administrative employer duties. They do this for all kinds of businesses. They offer big company benefits and a full range of HR services and on-board new businesses everyday. They use a concept called “co-employment” which allows the employees to be reported under the tax number of the PEO. Of course the worksite employer runs everything day to day while the PEO handles everything administrative. The PEO takes over all the baggage of being an employer. Problem solved. Now, you have great benefits just like the big boys. You and your employees are part of a large private pool of benefits. That gives you and them the comfort of big company benefits and volume pricing.
How do the PEOs offer these ‘big company’ benefits to small employers like you? Since PEOs have way more employees to negotiate for, they get volume discounts on almost everything. ‘Economies of Scale’ teaches us that if you buy enough of anything you’ll get a price break. That’s exactly what we’re dealing with and it’s how PEOs save money on employee benefits. There are other ways that a PEO will save your business money, but I won’t bore you with those details. But, if that sounds fascinating and you really want to know more, contact us.
If you want to stay competitive then you’ve got to hire the best employees. PEOs allow you provide top tier benefits for your employees without breaking the bank.
Another option is to set up a Tri-Funded Health Plan. It’s basically a self-funded, shared-cost strategy. We first get your company a bare-bones, no-frills, group health plan from a major carrier. This way you’re protected from any high medical expenses during the year. Next we create a customized group health plan for your employees so they can have affordable premiums, a low deductible and cheap co-pays for doctor visits. And finally we set it all up with our plan administrator so it’s all managed for your business. The employer is only responsible for any remaining premiums and for any claims up to the company health plan deductible.
This kind of Tri-Funded Group Health plan is saving companies 25-55% on average versus buying a group health plan on from a carrier directly. For more detailed information, request a quote and speak with an advisor today.
If PEO sounds like something you’d like to explore for your business, let us know! We’d love to help you learn more about PEO and what it can do for your company. It never hurts to know your options! Best of all, there’s no cost and no obligation.