Tag Archives: benefits of a professional employer organization

What Can Professional Employer Organizations do for You?

business professionals meetingA professional employer organization is a company that handles all your human resource needs, This includes payroll and administration, employee health and retirement benefits, workers’ compensation insurance, state and federal compliance issues and even worker training. Therefore, all you have to do is hire, supervise and promote, or fire, your employees as needed. If you need these services, RMPersonnel can help!

Benefits of Using a Professional Employer Organization

You should look into hiring a professional employer organization as soon your accounting department asks for a dedicated human resources person to handle all the paperwork. This will enable them to be able to return to managing your balance sheet sooner rather than later. In addition to freeing up your accounting department, it will also enable you to offer higher-quality insurance and benefit plans at significant savings in order to attract and retain skilled employees. In addition, they also handle every other aspect of employee administration including your 401(k) plan and flexible spending accounts, as well as providing the policies and procedures that enable you to be in compliance with the ever-changing state and federal laws and regulations including those from ADA, payroll, OSHA, and the EEOC, to name a few. Moreover, these organizations are also able to provide effective management and access to payroll records, benefits, personnel data, vacation and sick time accruals and specialized reports. Therefore, if you have a human resources related employee claim, such as a discrimination allegation, they will know what to do and will take the lead on managing the claim process.

How a Professional Employer Organization Works

Professional employer organizations combine the employees of several companies into one large pool in order to help save time and money. Therefore, you retain essential management control over the work performed by the employees and are responsible for writing a check to the leasing company to cover the payroll, taxes, benefits and administrative fees. The professional employer organization, meanwhile, assumes responsibility for work such as reporting wages and employment taxes.  It is not to be confused with those businesses that supply temporary employment. While the professional employer organization is the “Employer of Record,” your company remains the “Worksite Employer” and continues to retain day-to-day control and direction of your worksite employees.

In fact, the National Association of Professional Employer Organizations reports that businesses that use these services grow up to nine percent faster, have almost 15 percent lower employee turnover, and are 50 percent less likely to go out of business. Moreover, these companies work with between 156,000 to 180,000 businesses and employ up to 3.4 million people. Additionally, the industry has reported generating between $136 and $156 billion in gross revenues each year.

If your company is in the El Paso area and you are interested in using the services of a professional employer organization, contact RMPersonnel. They have been helping area businesses since 1990.