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Employers often assume that they should make the switch to a PEO on January 1st. However, employers can successfully transfer human resources to a PEO any time of the year. It’s really more a function of business need versus a specific date on the calendar. It’s more important to focus on hiring a PEO that provides the HR, employee benefits and recruitment services your company needs rather than worry about having to wait until the first of the year to make the move. Here are the times when it makes the most sense to outsource your human resources needs.

You Don’t Have the Time to Manage HR Yourself

If you’re a small business, hiring a PEO is almost mandatory. HR regulations are nearly always changing and evolving. It takes full-time attention in order to stay on top of everything. Not only that, but there’s an enormous amount of paperwork; everything from I-9 forms to claim submissions, to benefits packets; everything has to be accurate, on time and in compliance. If you lack the time to dedicate yourself to this task, you should hire a PEO.

You Can’t Afford to Hire an HR Professional

You should also hire a PEO if you lack the resources to hire an in-house human resources professional. PEOs offer certified, experienced and trained professionals that are experts at their jobs. It won’t work if you just try to ask an existing employee if they can take over human resources as extended duties. There’s simply too much to know and learn and do. In addition, you won’t want to share personal and confidential information about each employee with someone who isn’t certified. You would be opening your company up to litigation if personal information about an employee wasn’t adequately protected. Remember, your HR person would be privy to personal salary histories, company complaints, and possibly even medical claims records. You have an obligation to protect the privacy of all your employees. The best way to achieve this is by hiring a PEO.

You’re a New Company

If your company is new, you’ll definitely want to hire a PEO, at least until you can grow enough to have your own in-house human resources department. New companies have special needs when it comes to HR. You’ll have a lot of critical recruiting needs, which plays a big part in the future success of your company. A PEO can mange the entire recruitment process, from tapping the labor market, to vetting appropriate candidates, to interviewing and making hiring recommendations based on applicants’ skill levels, experience and interview results. That’s an invaluable service for a new company. Once you’ve made your final hires, the PEO takes on the massive job of onboarding. This can include HR benefits training, risk management, payroll management and more.

When you hire a PEO, you and your employees have more time and energy to focus on the jobs they were hired to do. A PEO allows you to focus on growing your company instead of managing the minutia of human resources. For more information about when and why to hire a PEO, please contact us



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