What is a PEO, or professional employment organization? In short, it’s a company that provides human resource services to other companies. This HR outsourcing allows you to concentrate on actually running your business rather than spending time on administrative HR tasks. For instance, a PEO can help with employee recruitment or termination paperwork on the back end. Additionally, a PEO can help advise on conflict resolution between employees, their employer, and other relevant parties.
Scaling teams is a process whereby the company will change its workforce, processes, and associated computer hardware and software to meet changing needs within the marketplace. Those changes can be increased or decreased. Generally, increases are much more common than decreases. Therefore, working with a PEO supports team scaling by providing an expert outlet to handle time-consuming tasks that aren’t part of a company’s core strategy.
Planning for the Future
Forecasting the future is an inexact science. For example, it’s impossible to know for sure what your target demographic will want in 10 years’ time. However, the idea is to get as close as possible to “sure.” By studying trends and previous changes in the preferences of your target demographic, you can form reasonable conclusions about what they might prefer 10 years from now. Several things affect this forecasting, including:
• Technological advances
• Societal economic growth or lack thereof
• Changes in demand in all demographics
You need a company that will help you analyze these things and help you set goals. Thereafter, that company will be able to see to the correct staffing needs while also maintaining morale and maximizing employee retention.
Optimizing Your Productivity
There are two key points here:
• Enhancing efficiency
By doing these two things, a PEO will help your company increase productivity and improve quality control. As productivity increases, you’re eventually going to reach a point of diminishing returns with the staff you have in place at the time. That means that you have to hire more people to handle the resulting workload.
As your team begins to grow, a PEO enhances efficiency via payroll management and onboarding services. They will ensure that you stay in compliance with labor laws and regulations and fulfill tax requirements so that you can run your business at its greatest potential.
A PEO can also help you build loyalty with your new hires via access to competitive benefit packages that may include health, dental, and retirement plans. If your team has questions about their benefits or any company policies, a PEO provides a centralized platform to get answers quickly. Creating a mutually beneficial employer-employee relationship reduces turnover and enhances productivity.
Efficiency thrives when using a PEO’s HR management platform to optimize processes and reduce risk. These user-friendly programs provide analysis and reports to encourage company progress. As you add more employees and need more HR services, a PEO can handle it all.
Ever-Evolving Training
After onboarding, your new employees will be sponges looking to learn to be able to succeed. You have to be able to provide meaningful training. That’ll develop and reinforce all applicable skills. The key to remember is that you have to grow and develop as much as your employees do. With technology increasing at an ever-expanding rate, you have to be flexible and adroit regarding training. Next month’s training class might need new material because of a breakthrough in product or process. By morphing training to fit your company’s needs, you can continue to build a powerful workforce that will help your company achieve its goals.
Speaking of Goals …
Goals must be manageable. They also have to be clearly defined. An amorphous “do better” doesn’t help. Neither will “triple our cash flow” nor other similar items. Scaling upward lets you set new goals. Reaching such benchmarks of achievement can build team spirit in your employees. When you recognize them for such achievements instead of taking them for granted, you cement the gains in loyalty that using a PEO allows you to have the time to create.
The Importance of Collaboration
In short, the left hand has to know what the right hand is doing. Management and employees have to work together.
Healthy Positivity Is Crucial
Creating a positive environment is part of the success formula. By having a top-flight PEO on your side, you’ll have taken the first step toward creating such a culture at your business. When designing the scaling process and building the environment, one of the key things to remember if something goes wrong, it’s far more important to fix what went wrong than to figure out who was wrong. By concentrating on results rather than assigning blame, not only will you create the positivity you seek, but you will also boost employee morale and loyalty.
