Explore the importance of offering your employees a robust benefits package and how a PEO can help

With 78% of employees saying they would stay with a company because they like the benefits, it’s clear that the benefits your business offers are critical to attracting and retaining talented team members. [1]  However, many small businesses find it difficult to keep up with the costs and paperwork associated with benefits administration. 

A professional employer organization (PEO) can help small and medium sized businesses with benefits offerings and administration, so that they are able to attract talent and remain competitive among larger companies 

Continue reading to learn more about how PEOs can help your business with benefits administration and bring value to your employees. 

What is benefits administration? 

Benefits administration is the process of creating and managing the employee benefits that a business offers its team. These employee benefits typically include: 

• Health insurance
• Dental insurance
• Vision insurance
• Paid time off (PTO)
• 401(k) retirement plans

Benefits administration typically falls under the responsibility of a business’s human resources department. Small and midsize business owners often find themselves struggling with the time commitment and compliance requirements of administering benefits for their employees. 

Many managers or owners will seek out PEO services to help them with benefits administration to ease their administrative burden. PEOs can also help your business access medical, dental, and vision coverage for your employees at more affordable rates.

What employee benefits do PEOs offer? 

The key to attracting and retaining talented employees is offering a robust employee benefits package, and a PEO can help your business access these benefits, including:

• Health insurance: One of the most important benefits that a PEO can offer is their access to competitive healthcare benefits, like medical, dental, and vision insurance. 

High-quality health insurance benefits will make your businesses more competitive in new talent searches as well as help to keep your current employees happy. 56% of American adults with employer-sponsored health benefits stated that whether they like their health insurance coverage is a key factor in deciding whether or not to stay at their current job. [2]

• Retirement plans: When your business decides to work with a PEO, there are two main ways that you can offer your employees a 401(k) retirement plan.

The first option is to offer employees a 401(k) through a third-party, which is the traditional way. With this method, your PEO will handle payroll deductions and taxes. 

The second option is using your PEO’s 401(k) retirement plan option where the PEO handles the liability associated with it. This will also allow you to take advantage of lower administrative costs.

• Life insurance: Many PEOs will be able to offer your business the option to provide a life insurance plan to your employees. They will be able to help provide employees with an affordable option that could include Base Life & AD&D Insurance, Employee Supplemental Life Insurance, Spouse Supplemental Life Insurance and Children Supplemental Life Insurance. 

How does a PEO help your team with employee benefits?

Small to midsize businesses often struggle to provide their employees with the same health benefits that larger companies are able to offer due to high costs, but this is not an issue for a PEO. 

The co-employment nature of PEOs allows them to harness the combined bargaining and buying power of all of their client businesses, providing them with access to high-quality insurance for employees and their families that include HMO, POS, and PPO plan options.

In addition to being able to provide these quality benefits at a discounted cost, PEOs can save your business hours by handling the paperwork for setting up and maintaining these employee benefits. They are also experts in knowing which benefits are worth it to you and your team so that you don’t have to spend your time researching benefit options. 

PEOs can also explain to you and your employees what exactly these benefits mean and how your employees can use them and answer any questions your team may have. Your employees will benefit from knowing they have a designated organization that handles their benefits and is there to help when needed.

Do PEOs offer other HR benefits to businesses? 

Benefits administration is just one of the many HR-related functions that a PEO can handle for your business. They can also provide:

• Payroll management: Many business owners find that it can become very time-consuming to keep track of payroll and taxes, especially as your business grows. When a PEO helps with this responsibility, you and your team will have more time to focus on efforts that contribute to the success of your business.

• Human resources: PEOs will offer your business various HR services to ensure federal and state compliance that aim to incorporate quality, convenience, and efficiency into your company’s daily functions.

• Workers’ compensation: PEOs provide comprehensive workers’ compensation insurance to ensure your business has the proper insurance to deal with wage replacement and medical benefits for employees who are injured on the job.

When you decide to partner with a PEO, your business will benefit from gaining access to advanced technologies. PEOs utilize modern, cloud-based servers to manage their clients’ employee information and complete HR and administrative functions, such as payroll processing. These systems allow your team to effectively collaborate while increasing efficiency and productivity. 

Is your business looking for a PEO in Orlando? 

PER has provided outsourced HR services to small and medium-sized businesses across Central Florida for over 25 years. We offer the extensive capabilities of a full-service PEO, while maintaining the personal connection of a small business.

PER is your integrated, off-site HR department that fully supports your business with a vast array of services that mitigate your employer-related liabilities. 

Our team of qualified benefits specialists can help by handling new hire eligibility and enrollment, qualified employee changes, and processing employee deductions and employer contributions. As part of our comprehensive services, we offer payroll management, workers’ compensation, benefits administration, and more. 

Ready to get started? 

Contact us today! 

Sources:

1: TeamStage | Employee Benefits Statistics: How Many Workers Have Health Insurance in the US in 2022?. 

2: SHRM | Employees Are More Likely to Stay If They Like Their Health Plan