This article was first published in San Francisco Business Times.
Professional Employer Organizations (PEOs), which provide outsourced HR services such as payroll, benefits, workers’ compensation and 401(K) administration, can be a terrific option for smaller companies without an in-house Human Resources team. But how do you know whether you’ve outgrown that solution?
For high-growth companies, it’s a critical question. Many firms often stay too long with a PEO when an in-house HR team supported by a full-service business insurance broker can provide more services and ultimately achieve the intended goal: attracting and retaining a high-quality, diverse workforce.
Why Leave a PEO?
As companies grow, their needs change.
To compete in today’s full-employment economy, organizations need a cost-effective HR program customized to their specific needs. Tech companies often have different HR and benefits requirements than life science companies. Likewise, manufacturing firms and nonprofits often require different strategies to compete and win.