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All About Professional Employer Organization Services

A Professional Employer Organization Service acts as a co-employer for your employees, allowing you to focus on your business and growing it without having to worry about legal and regulatory compliance. For SMEs, this is a common notion, as PEO Services handle everything from recruitment to termination. PEO service providers offer a variety of programs for start-ups and SMEs so that businesses can provide the best economic benefits to their employees.

Why should your company go for a PEO service provider? 

  • You can get guidance with relevant business solutions for expanding your business to and in India.
  • You can get help with job descriptions and hire the proper people through employment services.
  • The PEO service provider will handle all staff HR services according to customer directions and following Indian labor laws.
  • You will have a dedicated and exclusive HR professional to handle the entire account. That will be accountable for all risks.
  • The company sponsors the employee’s work and residency permits and enrolls them in our payroll system.
  • You can get access to the employee self-service portal and quickly access all relevant documents.

Here is a list of some pros and cons of using a PEO service provider.

Some advantages are –

  • Improve employee perks and make the HR process go more smoothly – 

Healthcare plans, life, and disability insurance, worksite benefits, mental health support, retirement plans, commuting perks, and dependent care are all offered by most PEOs. Outsourcing HR to a PEO can also improve employee satisfaction. PEOs are well-equipped to answer questions and handle benefits claims swiftly because they are specialists in all things HR.

  • Spend less – 

Another advantage of having many employees is that PEOs can typically negotiate cheaper rates with insurance companies and other benefit providers.

  • Save time – 

Instead of submitting paperwork, negotiating with benefits suppliers, and navigating through ever-changing labor laws. While the financial reductions are crucial, utilizing a PEO also gives you more time to focus on building your business. PEOs can help you save time on administrative duties like payroll, benefits, streamlining everything from negotiating with providers to enrolling employees and processing claims, general employee management, risk, and safety.

Some disadvantages might include the following –

  • Control over critical processes and people is lost – 

A co-employment environment may cause distraction among the employees. That can cause work performance to be affected.

  • The impact of an outside corporation on your culture – 

A third-party company might affect the work culture and values in your company as well.

  • Internal HR department’s value has decreased – 

There is more control in dealing with employees and their HR difficulties issues. Because the owner interacts with his employees daily, he believes he is the best-prepared person to handle their recruiting, training, discipline, and termination.

  • More Internal Control – 

Even though the business owner had no input into the selection, the business owner handles the consequences if the PEO selects an unacceptable provider.

You can analyze and assess your company’s needs and make your decision about a PEO service provider to cater to your company’s needs.


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