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Maximize Your Benefits: Leveraging a PEO for Greater Buying Power

In an era of scarce talent and high turnover, it pays to invest in a high-caliber HR experience.

Today's jobseekers are looking for more than just a paycheck. To be truly competitive, modern employers must be able to quickly and effectively respond to the needs of their workforce and project a genuine concern for the wellbeing of employees. The most straightforward way to meet these expectations is improving HR infrastructure and investing in benefits and wellness programs that make your organization stand out from the pack.

For business leaders, this is no easy task. Harmonizing essential employee services and streamlining human resource operations can alleviate significant pressure from your business and offer a better experience for your people. This is where a Professional Employment Organization (PEO) emerges as a strategic partner to small and medium-sized businesses.

What Is A PEO?

A PEO partners with a business to provide its employees with professional services like health insurance and benefits, human resource consulting, and financial planning services. Working with a PEO allows a business to partner with one single team to fulfill all their workforce needs.

When a business decides to partner with a PEO, the PEO assumes the position of a co-employer for the organization’s workforce. In this unique partnership, both the PEO and the business take on the role of official employer for the employee. The business retains control over the employee’s responsibilities and work, while the PEO manages administrative duties like payroll and benefits enrollment.

The collaborative nature of partnering with a PEO frees up leaders to focus on growing their business while ensuring that the employee services are being met and upheld to high standards.

Unlock the Power of Partnership: PEO Advantages

If you’ve never worked with a PEO before, you may ask yourself what advantages there are to this kind of partnership. Working with one PEO firm to deliver all your workforce needs can help your business in the following three ways:

1. Providing the best possible health and financial benefits to your employees:

By partnering with a PEO, you gain access to cost-effective health, wellness, and financial benefit programs that your employees value. Getting your employee benefits right is a critical retention differentiator between you and competing businesses in the war for talent.

2. Helping expand your talent pool:

In recent years, many organizations have opened up their hiring to new locations across the country and even globally. This means that businesses are now tasked with understanding local, and global policies as they relate to employee benefits and compliance regulations. Working with a PEO takes this off a business’ plate and ensures no matter where the employer operates, they remain compliant. Working with a PEO also helps you expand your talent pool by providing HR processes and infrastructure that you need to bring on and retain new employees.

3. One vendor, many services:

Enjoy the benefits of working with one single vendor to service many of your HR, benefits, payroll and risk management needs. You can streamline vendor relationship management by relying on one single vendor and minimize time spent seeking out vendors and going through their procurement process. You’ll enjoy the added benefit of having one unified strategy across all your benefits and resources to help develop a holistic strategy that aligns with your culture, seamlessly integrates with your other offerings and addresses the needs of your workforce to foster healthier and happier employees.

Maximizing Your Employee Benefits

Offering competitive benefits is no longer nice to have, its a necessity for businesses to remeain competitive. A one-size-fits-all approach to employee benefits has become outdated and ineffective to attract and engage 5 generations currently in the workforce. Employees expect personalized workplace experiences with tailored benefits that address their unique healthcare, career and financial needs. Learn more about what today's employees value from their employer in our Employee Value Perception Study.

One of the best advantages that PEOs can offer is their economies of scale. When a PEO is able to pool all their clients, they build collective buying power with benefits providers. This gives them negotiation power which results in the ability to offer access to high-quality services and benefits at more affordable prices. Working with a PEO brings small businesses together to achieve volume that results in a better deal to maximize investments.

Small businesses dont need bigger, they need better. A PEO allows small businsses to access the best possible plans and keeps employee benefits competitive and sustainable for growth.

Discover how a PEO strategy can help your organization thrive by connecting with a OneDigital Resourcing Edge consultant to learn more.

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