An increasing number of businesses in the modern era are beginning to turn to Professional Employer Organizations (PEOs) like Einstein HR to meet their human resources and accounting needs. Around 15% of all employers with between 10 and 99 employees use PEOs today, numbering nearly 175,000 companies according to data from the National Association of Professional Employer Organizations.
Savings Brought By PEOs
There are a number of reasons that many companies turn to PEOs for their HR services, not least of which is the amount of savings that a PEO can provide. Generally speaking, hiring a Newark PEO company like Einstein HR is less expensive than paying for a full-time, in-house staff to handle those services.
The Cost of a PEO
A PEO company in Newark can use different payment methods depending on what suits the client business ownerâ€™s budget. There are two main kinds of payment methods from which owners and employers can choose.
- Per Employee, Per Month: This method involves a flat rate for each employee, paid to the PEO every month. It can be useful for businesses with few employees or with employees on high wages, rather than paying as a percentage of overall payroll.
- Percentage of Payroll: This method is useful because it can grow with your company. Most businesses who use this payment method have a large number of employees on lower wages.
Regardless of which payment method is chosen, the cost of a PEO is usually much less than paying the salaries of an in-house staff for HR and accounting needs.
Efficiency Leads to Lower Costs
Not only does a PEO cost less than a full-time staff, but there are numerous other ways that using a Newark PEO company like Einstein HR can save you money. By being more efficient and employing experts in HR and accounting matters, a PEO can cut back on frivolous and unnecessary costs.
For example, a PEO can help a client company cut back on risk, saving money on issues like workersâ€™ compensation claims. Additionally, the improved services and employee benefits provided by a PEO can cut back on costly employee turnover rates. In fact, the NAPEO reports that companies who use PEOs have, on average, a 14% lower rate of employee turnover.
Savings Measured in Time
Business owners do not want the hassle of handling HR, accounting, or payroll matters. These issues come with tons of paperwork and involve hours of sifting through esoteric tax law and federal regulations.
Instead, letting a PEO take over these matters can provide peace of mind and can free up the business ownerâ€™s time to focus more on growing their company. Imagine what you could do with the hours you save by using a PEO or Newark human resources outsourcing company like Einstein HR.
Services Performed by a Newark PEO Company
The services and benefits provided by a PEO company in Newark are as diverse as the HR and accounting needs of its client businesses. Though the best option usually is to outsource the entirety of a client companyâ€™s HR needs, Einstein HR allows business owners to select specific services in an a la carte fashion. The following is a list of some of the available services provided by Einstein HR.
Einstein HR serves as a Newark small business payroll company and can handle all of your payroll needs. From the use of online payroll entry for the DIY-leaning business owners to full payroll management, we can serve you in the capacity you require for your specific company. Employees also have access to payroll data through online Self-Service portals.
Employee Benefits Packages
Since PEOs like Einstein HR sign a co-employment relationship with each company they serve, their employee pool is much larger than that of a single business. This gives a Newark PEO company a better bargaining position for higher-quality employee benefits packages as well as the ability to spread the cost of benefits across a larger number of employees.
Lowering Risk Profiles
By handling compliance issues regarding local and federal labor laws, designing better safety procedures, developing harassment policies, and more, Einstein HR can help lower your companyâ€™s risk profile. This is important for attracting new clients as well as encouraging deals with other businesses, as high-risk companies usually turn off investors and customers alike.
When you sign on with a Newark PEO company like Einstein HR, you engage in a co-employment agreement. Though some business owners may balk at the title, the relationship is very straightforward and represents no increased risk for the client business owner. The two sides of the relationship can be broken down in the following ways.
- The Owner: The business owner retains control over their business, dictates which services will be provided by the PEO, and has the final say in all hiring and firing decisions.
- The PEO: The PEO is considered a co-employer of the client companyâ€™s employees, which means that it is allowed, legally, to handle sensitive employee information like payroll, withholdings, benefits, and similar items. The PEO does not control the company in any way and follows the direction of the business owner.
Work With a Newark PEO Company Today
If you are a business owner looking to save money and time by outsourcing your HR and accounting needs, look no farther than Einstein HR. Fill out the form on our contact page or call us today at 770-962-1700 to start the process. One of our representatives will be in touch with you within 48 hours for a FREE Â quote on our services.