One of the best ways to recruit and retain top-level talent at key positions within your company is to provide a competitive employee benefits package. Unfortunately, it is often difficult for new or smaller companies to have the kind of leverage required to negotiate high-quality benefits packages. Owners of smaller businesses may find themselves unable to afford the cost of competitive benefits packages, missing out on the best talent in the field.
PEOs, or professional employer organizations, like Einstein HR are here to help. We can work with you via a co-employment arrangement that allows us to secure competitive employee benefits packages at lower individual costs. The result is that you can attract and retain the employees that best suit your companyâ€™s needs while cutting back on extra costs and lowering employee turnover rates. Using PEOs has become a more mainstream business practice in recent years, with PEOs working with as many as 15% of United States businesses with between five and 99 employees, according to the National Association of Professional Employer Organizations.
How Co-Employment Affects Employee Benefits
The way that a PEO like Einstein HR can help companies provide benefits to employees is by engaging in the co-employment relationship. Though the name may sound scary to some business owners, co-employment is a risk-free, fundamental business relationship that allows the PEO to perform services involving such sensitive information as payroll records and benefits package management.
The Ownerâ€™s Role
In a co-employment agreement, the owner of the client business is known as the primary employer or Executive. They retain control over the direction of their company, have the final say in all hiring and firing decisions, and can direct the PEO to perform services specified in the co-employment agreement. In short, nothing changes about the business ownerâ€™s role except that they delegate some of the services they perform to the PEO, such as providing and managing benefits, dealing with payroll paperwork, or drafting anti-harassment policies.
The PEOâ€™s Role
After signing a co-employment agreement, the PEO becomes a co-employer of the client companyâ€™s employees. This means that it has the authority to handle sensitive data and perform services normally reserved for employers, such as allocating payroll and managing benefits packages. The PEO is subservient to the business owner, and the owner can decide to cancel the arrangement at any time.
Co-Employment and Benefits
The important aspect of the co-employment relationship is that a PEO is technically a co-employer with all of the client businesses that the PEO serves. This means that an organization like Einstein HR has an employee pool much larger than that of any single client company. Not only does this fact give PEOs a better bargaining position to attain competitive employee benefits packages, but it also means that the cost of those higher-tier benefits packages can be spread out across exponentially more employees, lowering the individual cost. More competitive benefits mean more competitive employees and less employee turnover.
Other Ways Einstein HR Can Save Your Business Money
There are innumerable other ways that PEOs like Einstein HR can save client companies money. For starters, the cost of using a PEO is often much lower than the cost of hiring a permanent in-house HR and accounting staff. So you save money right out of the gate. However, Einstein HR can lower your costs through our services as well. Some of the services we provide include:
- Lowering a companyâ€™s risk profile
- Ensuring compliance with local and federal labor laws
- Handling workersâ€™ compensation claims
- Providing improved safety standards
- Handling tax information
All Businesses Benefit From Einstein HRâ€™s Services
Einstein HR has decades of combined experience in the HR world, and we were founded by industry veterans. If you are the owner of any business, you can benefit from hiring us as your PEO â€” especially if you own a small business with between five and 100 employees. However, we are not limited to small businesses when it comes to helping owners. We have worked with companies that employ as many as 500 employees and have assisted businesses in a wide variety of industries, such as:
- Real Estate
- Health Services
Due to the quality of our services and the level of dedication we have to customer satisfaction, Einstein HR has continued to grow every year since our founding. Recently, we were awarded a spot on the Inc. 5000 list of fastest growing businesses in the United States, where we were ranked among the top 15 PEOs in the nation.
Start Providing Your Employees With Competitive Benefits Through Einstein HR
If you are a small business owner looking to improve your companyâ€™s marketability in the jobs market, look no farther than Einstein HR. With our help, you can provide prospective employees with competitive benefits packages and may soon start attracting top talent in the fields you need.