Professional Employer Organization - An Employees Perspective - 102

Regulatory Compliance:program. These programs range from no/low cost
A Professional Employer Organization (PEO) will offerchoices to moderate and higher costing choices.
services that help small businesses comply with theEmployee reward and recognitions programs help
ever-expanding myriad of federal, state and citycompanies retain top talent by challenging employees
employer laws. This is valuable for employers becauseand making their achievements visible. They also
they will stay clear of employment litigation, but it is alsoprovide a simple and inexpensive way to recognize
valuable in attracting and retaining quality employeesemployees and give incentives other than traditional
that expect their employer to follow the guidelines theyraises and bonuses.
may be used to working for larger companies.PEOs' reward and recognition programs are scalable
A great example arises when observing Familyand easy to deploy. They allow employees to go
Medical Leave Act (FMLA).online to select their own reward; which can vary from
FMLA requires employers to provide up to 12 worka employee of the month parking spot, gift certificates
weeks of unpaid, job-protected leave, within anyor a group outing to a bowling alley or restaurant.
12-month period, to eligible employees for certain familyPerformance Reviews:
and medical reasons. It's most noticed withProfessional Employer Organizations provide the
pregnancies. FMLA is only enforced upon companiesstructure, software, and consultation necessary to
with 50 employees or more. If an employee works forimplement performance appraisal programs quickly
a company with less than 50 employees, the employerand cost-effectively. This is great for employees as it
is not forced to comply with FMLA, consequentlyprovides visible structure for their performance and is
employee may not have their job waiting for themoften tied to bonuses, rewards, and raises.
after becoming pregnant.Employees that have worked in an environment
However through co-employing with a Professionalwithout performance reviews can understand the
Employer Organization, small businesses are requiredfrustration of not having one; cronyism, playing
to comply with regulations that apply to largerfavorites towards management, losing great
corporations. PEOs will help their clients to understandemployees, etc.
this and strategically manage for it.PEOs can roll out a complete performance review
For a helpful chart of employer regulations and whatstrategy in a matter of weeks and without much
sized companies they pertain to click here.administrative burden on behalf of their client.
Human Resources:Performance appraisals are not only good for
PEOs provide companies with human resourcemotivating employees, but they also provide necessary
consultation and innovative workforce solutions that godocumentation of performance when an employee is
beyond regulatory compliance (things companies havenot performing well, which is helpful when helping,
to do) and more into maximizing employee productionsuspending, or terminating employees.
and retention (things companies should do).Its all pretty simple, when employees are happy with
Its been proven that most important factors that leadtheir job, they will be retained, when an employer can
to employee production and retention are employeeretain their employees, they will be more profitable.
benefits and compensation. However, applying HRWorking with a quality PEO sends a message to
strategy to a small company will also help employeesemployees that your company pays a premium to
feel welcomed, visible, and important while keepingensure that employees have a great place to work.
employer costs down.For more information on Why Employees like PEOs,
Reward and Recognition Programscheck the next articles in the series Why Employees
Professional Employer Organizations offer advice onlike PEOs 101, and Why Employees like PEOs 103.
deploying a formal employee reward and recognition