How a PEO Can Support and Supplement Your Existing HR Department

Those familiar with PEOs (Professional Employer Organizations) commonly think of the PEO as strictly a way to outsource all of your HR duties, eliminating the need to have your own HR Department.  However, an equally important role of a good PEO company is to serve in a support role for your existing HR Department. 




Supports you can get from PEOs – Leave your heavy lifting and routine tasks to them

PEOs can support and supplement your HR Department regardless of the level of depth and experience you already have in place.  This includes support at all stages of the employment cycle, including recruiting, interviewing, onboarding, payroll, and benefits, HR compliance, employee discipline, and termination. 


Your HR Department can still “run the show” while leaving the heavy lifting and routine tasks to the PEO.  For example, during the hiring process, the PEO can assist with providing interview guidelines, job descriptions, employee handbooks and related tasks.  Once an offer has been extended and accepted, the PEO can assist with the onboarding setup and required documentation (i.e. I-9s, W-4s, etc.)  The PEO can then process payroll, remit taxes, file tax reports and administer benefits.  Furthermore, because of economies of scale, a PEO can usually provide better employee benefits at more competitive rates than a smaller company can obtain on its own. 




The biggest bonus – HR compliance support

Another service that nearly every employer can benefit from is assistance with HR compliance.  PEOs generally subscribe and have access to compliance resources that would be cost prohibitive for most companies.  Having access to experienced HR professionals equipped with the latest compliance software provides employers a level of assurance and comfort they would not otherwise experience.  The PEO can monitor the myriad federal, state and local laws affecting your particular business and keep you apprised of developments impacting your company and industry.     


Many of the questions we receive from clients deal with the issues of employee discipline and termination.  Discipline should start with a well-written employee handbook that is tailored to your particular business.  By clearly spelling out acceptable and unacceptable behavior in your organization and ensuring that every employee receives, reads and understands your handbook, you will establish a solid foundation from which to discipline employees and, if necessary, terminate them.




No more drama with employee discipline and termination

Your employee discipline policies will provide you and your employees with a guideline that, if applied fairly and consistently, will teach your workforce what can be expected to happen when policies and procedures are not followed.  This concept also applies to a well thought out termination policy.  Your PEO can help support you in this role by drafting your policies and handbook taking into consideration company objectives and the requirements of federal, state and local laws.


When progressive discipline doesn’t work, there is the issue of termination.  This, of course, is a heavily litigated area of employment law and the wise employer will do everything possible to reduce the risk.  By having internal procedures for documenting discipline and maintaining good employee records, the employer will reduce litigation and be better able to defend against claims of wrongful termination, discrimination, etc.   Again, this is where the strength and expertise of the PEO can provide invaluable support to your HR department.




Similar to a consultant, accountant or lawyer, a PEO can be hired to work on your behalf providing those specific services and products that you need to support and strengthen your department.  Consider putting a PEO to work for you today! Back Office Remedies offers customized PEO solutions for small to mid-size businesses. If you would like to know more about our PEO solutions, contact us today for a free consultation.

Written by Paul McFarling - Legal Counsel

Updated on July 10, 2017 10:25