Pros
Focus on Your Core Business. Payroll is a top administrative burden for small businesses who waste hours on payroll processing. These hours should be dedicated to managing employees, clients, or other essential business operations. Companies who hire PEOs free up much needed time.
Better Oversight. The rules and laws on payroll, benefits, tax and HR compliance can be overwhelming. This is especially true for small businesses who cannot possibly keep up with every compliance detail. PEOs specialize in these areas and stay up to date on every change in payroll and HR rules.
Liability Protection. Most PEOs have employment liability insurance in case a former employee sues the company for discrimination or wrongful termination, so you don’t have to tap your insurance and risk higher premiums.
Cons
Internal Controls. As burdensome as HR administration can be, small business owners may have difficulty letting go of these duties if they are used to being deeply involved in every aspect of their business.
Change. PEOs are always negotiating better healthcare plans. PEOs may change health care providers regularly and cause frustration among employees. While businesses can always opt to seek health care plans outside of the PEO, StaffScapes balances costs with consistency to minimize inconveniences to our clients when considering plan changes.
Impersonal.