Running a business can be hard considering the numerous tasks professionals manage daily. There are innumerable responsibilities, particularly in the Human Resources department, with employee onboarding, document processing, compliance reporting, and many more.
It is important to streamline such responsibilities for a smart working environment rather than distribute them among employees. A Professional Employer Organisation (PEO) is what you are looking for in such cases.
The traditional definition of PEO platform is a digital platform that handles the lion's share of an organization's HR tasks. These include, and are not limited to, the following:
- Compliance and risk management
- Employee handbooks
- Onboarding and offboarding
- Payroll processing
- Tax filing
- Performance management
- Workers' compensation
Essentially what a PEO platform does, is manage a number of HR tasks seamlessly, without the organization having to hire multiple professionals for the same. PEO platform ensures execution of its tasks on time and without any human errors, which can cost organizations significantly.
How PEO platform can help businesses
According to reports, both small-sized and mid-sized businesses face many common challenges. Fortunately, they can be mitigated by using PEO platform.
The right PEO platform aims to reduce organization responsibility, facilitate smooth hiring, manage health care plans and navigate compliance regulations. With so many responsibilities being automated with the platform, leaders can oversee other priority tasks and strengthen the business.
A PEO platform helps in navigating the following business challenges:
An organization gr so that with new employee additions. However, hiring talent can be a daunting task considering the risks involved and the considerable time invested. The risk amplifies in the case of hiring freelancers or remote employees, where you must abide by various complex rules and regulations.
PEOs are built to save significant time and money in recruiting the right talent, ensuring an efficient process. Some PEOs can also help in scouting the right talent for the relevant positions. Furthermore, a PEO platform has the best knowledge regarding salary structures (payroll, benefits, and many more) and range, which gives a major advantage to recruiters in salary negotiations.
There are many labor laws and regulations regarding hiring, which vary from one country to another. A PEO will ensure that the entire recruitment and employment process aligns with the local and federal compliance measures.
A PEO platform also handles the paperwork, training and adheres to the relevant procedures to quickly and expertly hire the right talent. Clear communication and streamlined tasks lead to a positive onboarding experience for the employees and generate an optimistic image of the company.
Health care plans
Health insurance and retirement plans are often a part of employee benefits. In case a business does not have access to the right plans, the PEO platform can help in finding better insurance options at decent rates. In addition to health plans, PEOs can assist in drafting other benefits such as:
- Dental and eye care
- Life insurance
- Educational benefits
- PTO policy management
- Employee assistance programs
With so many benefits offered with a job, an employee is motivated to give the best results with a sense of respect and care. Therefore, a PEO platform can help businesses plan the desirable benefits and ensure employee stability and retention.
Taxes and regulations
It is usually the responsibility of HR, in the absence of a legal team, to find out the federal, state, and local labor laws before hiring an employee. They are also tasked with helping the employee understand their rights and responsibilities according to the law.
Usually, companies look out for the following laws before growing their business beyond borders:
- Fair Labor Standards Act (FLSA)
- Immigration Reform & Control Act (IRCA)
- Employment Retirement Income Security Act (ERISA)
- Equal Pay Act, (EPA)
- National Labor Relations Act (NLRA)
- Consumer Credit Protection Act (CCPA)
- Occupational Safety and Health Act (OSHA)
- American with Disabilities Act (ADA)
- Affordable Care Act (ACA)
- Family and Medical Leave Act (FMLA)
- Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)
The sheer size and complexities of these laws require an expert dedicated to the task. In such cases, a PEO is the best option as it completely understands and easily guides you in complying with the relevant rules and prevents any unnecessary confusion.
With a PEO platform managing the HR responsibilities, you can focus on improving business and providing a better service. On the other hand, your competitors will be occupied with myriad problems on a daily basis without an expert handling their HR tasks.
Zero down errors
HR professionals have to deal with a mountain of data on a daily basis. Consumption and analysis of the data is a major challenge, best handled by a PEO platform. A PEO will efficiently collect and store bulk data, conduct calculations and automate processes, leaving no room for error.
With a PEO, organizations enter a "co-employment" relationship. This means that PEO becomes the employer of record and their name and employer identification number (EIN) are mentioned on the employee's paychecks and other important documents.
This is a considerable measure of security, in addition to complying with the laws, as the PEOs become liable in case anything goes wrong. If you end up paying the wrong taxes or do not adhere to regulation, the government targets the PEO and the employee(s) can also sue them. Therefore, total reliability and trust are the cornerstones of a PEO's success.
Better economy and operations
With the world economy facing massive uncertainties, it is imperative to be future-proof and cost-effective. PEOs can help you in coping with new laws, regulations and market fluctuations.
According to a survey, a PEO-dependent business had the following benefits over non-PEO firms:
- Better annual median revenue growth, twice more than non-PEO firms
- Enhanced ability to tackle key business challenges
- Smoother procedure of hiring employees
- Increasing revenues
- Improved funding
With a compliant workforce and security of sensitive data, PEOs safeguard you from many problems and give a significant advantage amidst an ever-changing global economy.
Why Multiplier is the best PEO platform
Multiplier's PEO software offers a host of solutions that will benefit organizations. Some of the most important features of the platform for businesses looking to hire remotely are:
Compliance with local labor laws
Multiplier seamlessly handles local compliance in each country, so you can hire a remote employee without any hassle. Furthermore, you will not have to spend any time and resources on legal assistance regarding the same, as Multiplier can guide you through the complexities of the law.
The last thing a business wants is non-compliance issues and Multiplier ensures this never happens. The PEO platform reports the challenges, if any, and the necessities for adherence. All you have to do is scout the right talent and let Multiplier handle the legalities.
Managing payroll, contracts, and benefits in one platform
Multiplier lets you obtain compliant contracts, manage the payroll of all employees and handle their benefits in more than 100 nations. You can also track the administrative and payroll tasks and never miss a deadline. Consequently, you will save significant time and effort from communicating with numerous suppliers, managing scores of documents, and working on multiple HR systems.
With Multiplier, you can handle all these tasks effortlessly in one platform instead of hiring multiple professionals to do the same.
Pay your team in multiple currencies
Hiring international employees means dealing with the constant fluctuations of international currencies. As the market goes through its shares of ups and downs, you should not be worried about international payment and the relevant compliance.
Multiplier pays your remote teams in their respective currencies within minutes. Their PEO platform initiates the pay on time and ensures that you do not pay the incorrect amount.