CLEARWATER, Fla., Oct. 2, 2014 (GLOBE NEWSWIRE) -- Anyone who has ever attended a management seminar has heard the question about whether they are working on their business or in their business. Many small to mid-sized businesses would say they don't have a choice in the matter.
"Small business owners may not think there are a lot of options for them -- they need to wear all the hats. Many of them have come to the ownership point after working their way up the ranks and may even feel more comfortable being 'in the weeds' rather than developing strategies and generating new clients," says Haley D. Crum, vice president of client services at FrankCrum, a national professional employer organization (PEO). "Often they spend an inordinate amount of time on basic human resources processes like hiring, payroll, benefits, taxes and compliance – time that could better be spent on growing their business."
Crum cites a recent white paper published by the National Association of Professional Employer Organizations (NAPEO) that makes the case for small and mid-sized employers to outsource their HR functions for a number of reasons:
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PEO clients can offer a broader array of benefits to their employees at a lower cost.
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These benefits play a major role in "leveling the playing field" for smaller businesses that are trying to compete for the best talent.
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Outsourcing HR functions allows owners and managers to focus on their core business.
- The bottom line is that PEO clients have higher growth rates than other small businesses.
Finally, the NAPEO survey found that PEO clients spend less on HR administration than similarly-sized peers that do not outsource these functions. The conclusion is that better service is being provided to the companies and their employees, but at a lower cost, freeing up funds (and time) that can be used more effectively in other parts of the business.
"We would add a number of other benefits available through selected PEOs such as lower workers' compensation rates, improved risk management, onsite safety assessments and safety training, as well as consultation on hiring, corrective actions and terminations," says Crum. "These services, sometimes included as part of the basic PEO package or available on an as-needed basis for a fee, can be invaluable in helping the business compete more effectively in the marketplace."
About FrankCrum:
Founded in 1981, FrankCrum is a pioneer in the Professional Employer Organization industry, providing outsourced human resources, payroll, employee benefits, risk management and workers' compensation. The company supports more than 3,000 businesses nationwide that collectively employ more than 50,000 people. The FrankCrum family of companies includes FrankCrum, FrankCrum Staffing and Frank Winston Crum Insurance, each focused on the business success of small and medium-size employers. For more information, go to www.frankcrum.com.