Dear Human Resources……

Often, the HR responsibilities of a startup company are so overwhelming that they can keep the business from successfully getting off the ground and being competitive right out of the starting gate. Why should a business owner waste time and talent getting involved in human-resources issues when there is often a simple solution right around the corner?

A PEO can make life a lot easier for startup business owners and their HR needs. Although they are sometimes confused with staffing agencies, payroll administration companies or temp firms, PEOs are different in that they typically provide a comprehensive collection of HR services to the companies they serve, from employee recruitment to benefits services.

Simply put, you still maintain control of the daily work of your employees, but the PEO performs the HR administrative functions and assists with the employer-related liabilities. PEOs also offer guidance and advice on HR issues, but you still hold the reigns. In other words, as a PEO client company, you do not have to consult with your PEO when it’s time to make an important decision about an employee.

When you choose to use a PEO, the majority of your HR responsibilities are lifted from your shoulders. Some of these may include:

• Workers’ compensation
• Government compliance
• Recruiting and hiring
• Best practices and policies
• Performance management
• Training and development
• Payroll procedures

Additional reasons to consider using a PEO include:

• A PEO allows startups to get off the ground with a sophisticated and streamlined human resource infrastructure. Its services allow the startup to focus on building the business without the distraction of dealing with the intricate and often mundane – though still important – details of HR management.

• PEOs are able to offer reasonably priced benefit plans. With their larger risk pools and economies of scale, they can provide plans usually available only to larger companies, plans that would be too expensive for a small business to buy on its own. In addition to health insurance, a PEO makes it possible for a startup to offer RSP plans, which will make the company more attractive to skilled and qualified job candidates and help in reducing turnover.

• Using a PEO can reduce your liability because the PEO shares or assumes employer-related liabilities. This means that they are mitigating the risk of any employment-related legal issues, thus reducing your business’ own risk.

• Your chances of bringing in top talent are likely to be greater with a PEO because of the competitive benefits package. When you have top employees from the start, your business’ chances of success increase significantly.

In today’s economy, startup businesses cannot afford to waste money, time and talent dealing with the growing requirements and responsibilities of human resource management. It’s time to direct your skills, talents, energy and efforts where they belong: towards your business and its vision for a successful future. Considering a PEO could be your first step toward growing a successful business and attracting an amazing group of talented professionals to work toward the company’s success.

Jeffery Reynolds / District Sales Manager / PEO Canada

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