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Using a PEO to Curb Rising Employment Costs

February 16, 2012 | Comments: 0 | Views: 150

It's a fact. Your costs as an employer are going up. In the coming years, small business owners will see increases in employment costs such as unemployment rates, workers' compensation premiums and taxes. Profits and time to devote to revenue producing projects will potentially decrease due to these added expenses. The good news is that there are solutions to the rising costs and the management of these required tasks. Professional Employer Organizations or PEO's as commonly referred to are Human Resources and Payroll Outsourcing firms that specialize in all areas related to your human resources. When you work with a PEO, their assistance will help you to mitigate risks, reduce liabilities and increase profits.

Let's take a closer look at two of the areas of assistance a PEO typically provides. Today, one of the most talked about areas of concern for small business owners is that of unemployment. Federal and state unemployment costs are rising, owners are unsure if they should hire based on economic forecasts and the American public continues to struggle to make ends meet. Just looking at recent unemployment numbers in Colorado of eight percent and national numbers just under nine percent, one can see that we are still in recovery from the recession. As your partner, a PEO will help you in the event of a termination or layoff. They should assist with the process and advise you on the procedures to follow to ensure you are compliant with legal requirements. In addition, the PEO will notify the former employee(s) of their rights related to benefits and final pay. If an Unemployment claim is filed, the PEO should help you respond to the Department of Labor to contest financial awards. By doing this, your unemployment rates will likely be lower compared to not managing the claim at all.

Handling Workers' Compensation is an important area of management for any small business. The first defense is to complete and customize a risk management program and implement it within your organization. Once done, safety experts at most PEO's should be able to help you provide individual management and staff trainings. Incorporating a risk management program will help reduce the potential for injury and protect employers from rising costs. Should a work-related injury occur, the PEO should provide a dedicated claims manager to review the accident, properly file claim responses, recommend safety protocol changes if needed and provide oversight for the claims processes. This manager will work closely with the medical team to ensure proper care for the injured employee as well as expedite treatment to return the injured worker as quickly as possible to the job. In doing so, costs associated with each claim will likely be reduced compared to claims processed with no direct oversight.

In addition to the assistance provided to the small business owner regarding Unemployment and Workers' Compensation, PEO's also assist with areas such as employee relations, payroll, benefits, tax payments, hiring and many other needs related to your human resources. We encourage you to contact your local PEO to explore options to help you focus on your employees, increase your profits and fully protect your business.

Eugena Bellamy is the Marketing & Sales Coordinator for StaffScapes. For more information, please visit

Source: EzineArticles
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