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Will a PEO Replace Your In-House HR Department?

Will a PEO Replace Your In-House HR Department?

By Easeworks / March 20, 2024 /
Human Resources

PEOs help make HR manageable for companies – but by no means do they replace your internal team. Instead, they help companies streamline crucial tasks like payroll, benefits administration, and safety compliance to give your internal team the time and funds to focus on your staff and core business tasks.

So, to answer that question – PEOs will not replace your in-house HR department. They will empower your internal HR team to provide better internal benefits to your staff and develop an efficient and productive work culture.

In this post, we'll discuss how PEOs work with your in-house HR team to produce these great results.

PEOs Bolster HR – Not Replace It

PEOs are a strategic and operational extension to existing HR capabilities by handling mundane but critical HR operations. That way, your in-house team will not have to worry about the crucial but mundane tasks required of HR, keeping your company compliant, supportive, and more capable of pursuing strategic initiatives.

Consider payroll processing, benefits administration, handling of worker's compensation, and the complexities of retirement plans. PEOs excel in these areas, which allows your HR team to excel elsewhere.

Get Time Back and Maintain Regulatory Compliance

With PEOs managing the core HR tasks, your team can tackle initiatives that resonate on a people-centric front. Your team can use that added time to focus on developing a quality work culture that helps your staff feel supported, where they will feel secure and capable of handling more.

PEOs are also compliance experts who will stay on top of regulatory changes and help your company maintain compliance. As HR professionals, they have more capacity to keep up with the shifting regulatory landscape, proactively cushioning your organization from potential fines and audits.

In addition to keeping your organization up-to-date with taxes and payroll compliance, they can help you establish qualitative safety programs to comply with OSHA and lower your risk of PAGA claims.

Find a PEO That's a True Partner

When seeking a PEO, look for a partner, not just a service provider. The right PEO will align with your company's values and goals and enhance your business capabilities. HR is overhead – but it doesn't have to be costly. An HR partner will help you save costs, giving your company a bigger proportion of revenue to put toward improving business operations.

Your chosen PEO should resonate with your company culture and work seamlessly alongside your HR department. They will work with you as you grow and make scaling your business simple for you – all you'll need to do is call them!

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