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How Do Employees Feel About Outsourcing HR To A PEO?

How Do Employees Feel About Outsourcing HR To A PEO?

By Easeworks / February 1, 2024 /
PEO Employees & Culture

Enacting significant changes can seem off-putting to many business leaders - and outsourcing HR to a PEO is no exception. However, changes occur all the time in businesses, and often, the companies that demonstrate adaptability find continued ongoing success. Regardless, you might wonder how your current staff would react to a large shift like implementing HR outsourcing.

A PEO partnership can significantly improve employee experiences, but weighing a big change can make taking the leap challenging. But, the long-term benefits PEOs can offer, such as enhanced support and benefits, improve employee experiences and result in a happier, more engaged workforce.

In this post, we'll explore how employees feel about transitioning to working with a PEO and the longer-term benefits of that partnership, such as improved employee engagement, streamlined tasks, and ongoing flexibility.

PEOs Improve Employee Engagement

Changes in HR processes can affect the day-to-day tasks employees must manage, but when those changes make their lives easier, they're worth it. PEOs can transform employee engagement, fundamentally altering workplace dynamics and empowering employees to be more productive. They streamline HR operations, enabling your HR team to manage tasks more effectively and concentrate on supporting their employees.

PEOs standardize employee interactions with HR for those outside the HR department, providing them with a single, familiar resource for accessing benefits, submitting PTO requests, or filing claims. This streamlined communication, fostered by transparency and clear guidelines, allows employees to feel more connected and supported.

Benefits of Streamlining Tasks

Streamlining tasks makes it simpler for your HR team to focus on building relationships instead of getting bogged down with paperwork, compliance, and administrative tasks. PEOs empower companies to invest in their core competencies instead of tasking their HR team to keep up with complex regulations. That helps them make processes more timely and efficient, freeing up internal time to focus on the needs of their employees.

PEOs can help you streamline any task, whether improved safety procedures or hiring and onboarding. That way, you can be confident that your company is safe and compliant to reduce the risk of injury and any liability with OSHA fines or PAGA claims. Companies can make better first impressions with candidates and new hires, making processes more efficient, quickly getting employees productive, and making them more likely to stay at the company long-term.

How PEOs Affect Employee Interaction

Helping employees feel heard and supported is critical in ensuring an engaged workforce. PEOs empower companies to achieve this for the reasons mentioned above and many others.

Here are some of the direct ways PEOs help to improve employee interactions.

Payroll Processing

Payroll processing has many nuances and pitfalls that companies can fall into, such as not filing payments on time, miscalculating wages and overtime, or incorrectly calculating taxes. PEOs take on that risk and help companies streamline payroll processing to ensure employee salaries are paid promptly and accurately. With this level of precision and reliability, employees can plan their budgets effectively and foster greater trust in the company's systems. And companies can rest assured that they are in good hands without risk of error or fines.

Improved Benefits

Partnering with a PEO often means access to more extensive benefits than what a small or medium enterprise can provide. They can navigate a wide range of HR challenges, guiding companies who wish to offer flexibility and better safety programs. It can significantly impact how much employees feel cared for, enhancing job satisfaction and fostering a sense of loyalty towards the company because they know they are protected.

Better Employee Relations

In taking over the mundane, paperwork-heavy tasks, PEOs free up your HR team to focus on building and maintaining excellent employee relations. They can devote time to understanding employee concerns, helping to resolve conflicts, and fostering a positive work environment. This increased attention can improve morale, employee satisfaction, and the sense of community within your company.

Streamlined Talent Acquisition

PEOs can guide companies through streamlining their recruitment and hiring process, which can help you attract high-quality candidates, expedite the hiring process, and ensure efficient onboarding. Candidates and new hires will experience a smooth, well-organized introduction to their new roles, quickly getting them up to speed and demonstrating your company's expertise. The time PEOs save your HR team also gives them more time and flexibility to focus on new hires and your hiring procedures, increasing the chances of bringing on talented workers who will stay with your company.

Shaping the Future of Your Business with a PEO

PEOs give companies the tools and the expertise to tackle all your HR needs, freeing your HR team to focus on what truly matters – growing your business. They provide a robust support system to your employees, enriching their work experience and contributing to a positive company culture.

The benefits are not just limited to the employees – as business leaders, you can lean on experts to navigate complex compliance and employment laws, ensuring your business remains compliant and risk-free. A PEO partnership empowers you to build a stronger, more successful business.

8 reasons to outsource HR compliance

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