4 Ways a PEO Can Help Small Business Owners with Employee Benefits
Many small business owners feel overwhelmed by employee benefits or discouraged by the price. The reality is that with unemployment at historic lows, small businesses must provide enhanced benefit packages on par with what large businesses can offer in order to attract and retain great employees. Businesses that are having a hard time finding attractive employee benefits packages because of cost or lack of expertise, can really benefit from a partnership with a Professional Employer Organization (PEO). A PEO helps small employers get past employee benefit challenges by giving them access to high quality employee benefit plans normally reserved for large businesses and by providing HR support.
4 ways a PEO can help small business owners with employee benefits
1. Get access to quality health care plans reserved for large employers
Employees want employer provided health care plans that give good coverage and don’t cost too much, which means that employers need to offer great health care plans to be competitive. Unfortunately, small business owners have a hard time providing quality health care plans at an affordable price. A PEO partnership can solve this problem by giving small business owners access to a much bigger variety of quality health care plans at more affordable prices. These plans are similar to the ones offered to large businesses and allow small businesses to compete with larger companies to attract top talent.
2. Give employees access to voluntary / supplemental benefits
Voluntary or supplemental benefits provide employees an option to add benefits specific to their needs. Typically, employees pay 100 percent of the cost of these benefits but many employees are happy to do this because they view these benefits as necessary. Having access to and managing changes to supplemental benefits can be expensive and time consuming; with a PEO, small business owners are able to provide a range of voluntary benefits and the PEO manages changes to the offerings. Examples of voluntary benefits include pet insurance, auto and home insurance, disability, critical illness/injury, supplemental life insurance, telehealth programs, flexible spending accounts and identity theft protection.
3. Provide complimentary benefits
Employees are happier when their employers provide extra perks in the form of complimentary benefits. Many PEOs offer complimentary benefits as part of their services package at no extra cost to employees. Complimentary benefits may include payment on Visa paycards, access to banking services, discounts to local events or businesses, and employee assistance programs.
4. A chance to personalize benefits
More and more employees want and expect to be able to cater their benefit plans to their specific needs. This expectation can create a challenge for small businesses owners who often have one-size-fits all benefit plans in place because that is what they can afford. PEOs can personalize HR solutions -including benefits packages - for their clients’ individual needs, industry, location, size and more. This tailoring combined with the supplemental and complimentary benefits available to them through a PEO, gives employees more control over choosing benefits that meet their needs.
Need help improving your employee benefits package? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from 401(k) plans to payroll, taxes, health insurance/benefits, and worker’s compensation. You also gain peace of mind that you are in compliance with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long). When choosing a PEO to partner with, there are many things to consider including cost, services and technology solutions.
With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet or phone. We can truly improve your employees work benefits while freeing you up to run your business.
What are you waiting for? Companies who partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!