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 PEOs.
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.
SureCo's Enrollment Platform is a place where employees can explore healthcare plans, choose the one that best fits their needs, and make employee contributions to that plan. For businesses, SureCo offers flexibility, cost effectiveness, and higher employee satisfaction.
Increases employee satisfaction: Employees have more choices; they’re not limited by expensive traditional corporate healthcare plans. They are free to choose the plan that works best for their personal circumstances and budget.
Provides healthcare portability: Plans are portable, which means employees don’t have to worry about losing healthcare coverage if they change jobs, and employers no longer have to subsidize continuing coverage after an employee leaves the organization.
Provides self-service options and built-in education: There are also educational resources and tools, giving employees self-service options to find the right insurance for them.
Lowers regulatory risks: SureCo's Platform does the heavy lifting to ensure compliance with all applicable regulations at the federal and state levels, relieving HR teams of the burden of keeping up with ever-changing requirements.
Reduces administrative burden: HR teams are busy enough without the constant time and energy drain that accompanies healthcare plan administration. With the Enrollment Platform, HR teams no longer have to worry about healthcare plan administration.
Provides a lower cost option: Most PEO providers do not offer an al a carte solution. If you don't need or want the other HR services provided in a bundled PEO offering, SureCo's Enrollment Platform could be the lower cost option.
SureCo is that rare solution that satisfies the needs of both business owners and employees. Its innovative approach offers employees the freedom of choice and offers employers freedom from administrative burdens and their attendant costs.
Learn more about SureCo's Enrollment Platform today.