If you’re looking at insurance options for your employees, you might be trying to decide if PEO is right for your business. You may wonder if it’s cost-effective and will satisfy your employees. Here’s what you should know about PEO's.
PEO stands for “professional employer organization.” A PEO outsources, among other things, payroll, human resources, workers compensation, and employee benefits.
When you’re using a PEO to outsource your employee benefits (specifically health insurance), that’s often known as PEO insurance.
If you choose to use PEO group health insurance services, you select a PEO and sign an administrative outsourcing agreement with the organization. That agreement gives the PEO permission to provide insurance for your employees. The PEO selects the right insurance for your employees based on your needs and budget.
A PEO (and PEO group insurance) isn’t the right fit for every company. PEOs and PEO insurance are generally considered acceptable solutions for small businesses. That’s because small businesses frequently lack the resources to handle a number of HR functions, including health insurance. Outsourcing those processes to a provider that understands the needs of small businesses and the insurance options available to them can be a cost-effective solution.
Small businesses can benefit from using PEOs for their insurance needs in the following ways:
While there are definite and significant advantages to using a PEO for small businesses, there are also some disadvantages.
Enrollme is a digital marketplace in which employees can explore healthcare plans, choose the one that best fits their needs, and make employee contributions to that plan. For small businesses, Enrollme offers flexibility, cost effectiveness, and higher employee satisfaction.
Enrollme is that rare solution that satisfies the needs of both small business owners and employees. Its innovative approach offers employees the freedom of choice and offers employers freedom from administrative burdens and their attendant costs.