Many employees think of a PEO as outsourcing jobs – there can be a negative connotation there. Calling an 800 number when they have a payroll concern may seem impersonal compared to walking over to the HR department. For a small to medium-sized business that is used to everything being done in house by someone they work closely with, delegating some tasks to a PEO can seem like selling employees out. These concerns are important to address because employees need to know that partnering with a PEO will benefit them most of all.
Honesty and transparency are crucial to good corporate culture, so talk to your employees about joining a PEO. Most companies don’t join a PEO because they want to get rid of their HR department, they are doing it to benefit their employees. Many companies retain their human resources staff while working with a PEO; they work in concert to handle tasks and give great service to employees. The partnership will alleviate pressure on employees who are doing human resources duties on top of their other job requirements. Be upfront about what the PEO will handle and what your company will handle – the two companies are now co-employers, your company is still the one leading your employees and still holds the same values as before.
A PEO can give even small businesses the benefits of a much larger company, which benefits your current employees and can attract future employees. Companies can afford better health, dental, and vision insurance plans by being in a larger employee pool with the PEO. You may also be able to offer your employees a great retirement plan. With a PEO handling payroll, staff will get accurate, timely paychecks and can access many self-serve options online. With great benefits like this, your company will be a more attractive place to work and employees will feel like the company cares about their well-being. Explaining that the decision to join a PEO was made with their best interests in mind and comes with great benefits to them can make employees more amiable to the partnership.
Working with a PEO can actually improve corporate culture if the transition is handled correctly. Employees will be happy with the new benefits and the streamlined responsibilities, and will be glad to know that your company is still leading their progress. So be open and honest, and give your employees all of the great benefits a PEO can provide: you just might make your company an even better place to work!