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Should I use a PEO?
Home » Human Resources » PEO/Employee Leasing » Should I use a PEO?The answer, of course, is closely related to your preferences and particular abilities as a business owner. If you consistently find yourself unable to focus on growing your business because of human resource decisions and administrative paperwork (and assuming you have enough employees to engage a PEO – many PEOs require that you have at least five), you should consider employee leasing. However, if you or your in-house human resources department is handling your administrative workload relatively efficiently, the freedom from administrative responsibility is of less benefit – particularly if you dislike the idea of losing a portion of control in certain areas of your business.
You’ll also want to carefully consider the potential effect on your employees. In a business of moderate or greater size this is of less concern, because in many such cases employees don’t have a lot of personal contact with their bosses; they show up at work, do their job, and pick up a check at the end of the week, with little concern about who wrote that check. However, if you operate a small business in which personal interaction is highly important, you may find that some of your employees aren’t crazy about the switch. Yes, you’ll still interact personally with your employees, but they’re no longer really your employees, which might be disturbing to them if they joined your team because they wanted to work in a small-business environment generally, and for you, specifically. Discuss the possibility with some of your employees as you determine whether to use a PEO.
Related PEO/Employee Leasing Articles
- What is a PEO?
- How can my business benefit from a PEO?
- What are the potential disadvantages of using a PEO?
- Should I use a PEO?
- What should I look for in a PEO?