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Are You Wearing the HR Hat Today?

September 6, 2017

 As a small organization, how do you handle HR today?  Do you have full time HR staff or do you have a patchwork of solutions to make it work?  Maybe a payroll company and your broker or even a 3rd party consultant or CPA?


A recent study conducted by the payroll company ADP indicates that 1.5 million small businesses spend billions on managing HR as an ad-hoc function.  Do you have employees wearing multiple hats? If you think about your organization, does the following sound familiar?


You have a controller/office manager/CFO that spends the bulk of their week handling their core job functions.  This includes AR/AP/Payroll, strategy, budgeting, etc.  They are tasked with knowing that side of the house as a professional and an expert.  Then those same folks are tasked with turning around and putting on their HR hat as part of their responsibility.  This is like asking your accountant to handle your web design. Does that person have the professional experience, tools, resources or even time to handle the HR responsibilities in the correct and compliant manner?  


That is where a PEO can help.


A PEO can be a fantastic solution for companies looking to scale their operations without adding additional staff and the associated overhead.  When you hire additional staff, you can typically benchmark 25% of that employee’s salary for related employment costs. That’s if that employee works out and before you invest in technology – we will do a ROI post soon enough.  Most PEOs provide HR expertise and guidance that is designed to help small organizations (typically 5-500 employees) thrive and address their HR needs.  In fact, the average PEO client today is around 30 employees.  Many PEO clients have a HR point of contact and the PEO becomes an additional expert resource to support the internal resources.


So, if growing your organization or improving your HR processes is on your radar, a PEO could be the perfect partner for you.

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