Why Companies Should Consider Working with a PEO

Getting a little help in human resources may be exactly what your company needs

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As your team grows, your HR needs are likely to expand. Adding personnel to your home service company means more complexities with payroll and benefits administration. In some cases, it might also mean heightened standards of regulatory compliance, at either the state or the federal level.

All of this can put a strain on your time, and when mishandled, these HR activities can potentially expose your business to real risk. For these and other reasons, many small and medium-sized businesses choose to partner with a professional employer organization, or a PEO. And while the PEO landscape is a bit more complicated for home service companies (more on that later), there are still plenty of options worth considering.

What is a PEO?

Essentially, a PEO is like an HR company that you can engage on either a retainer, or simply an emergency basis. These companies will provide support for a wide range of HR functions, assisting you in handling these activities in a way that benefits your employees and reduces your internal costs.

For example, because they work with so many different businesses, PEOs are often able to secure superior rates for group health coverage and other benefits. This allows you to provide better benefits, which helps with employee recruitment and retention, all while streamlining your own cost burdens.

How PEOs Can Help Home Service Companies

The services offered by a PEO will vary not just by company, but also by client. Home service businesses have some unique needs that a PEO can address. For example:

  • PEOs can help with risk management. When you have plumbers, electricians or other technicians in the field, they’re incurring some significant risks. A PEO can help mitigate that risk by providing the right training or ensuring adequate OSHA protocols. This not only helps your employees feel well cared for, but it also helps you keep your worker’s comp and other insurance costs low.
  • PEOs can provide help navigating complex employment laws. It’s common for smaller home services companies to get tangled up in employment laws, potentially resulting in real legal exposure. A PEO can verify compliance with OSHA, the Americans with Disabilities Act, the Family and Medical Leave Act, and beyond.
  • PEOs can assist with recruitment and hiring. You need talented technicians in order for your company to succeed, yet recruitment and hiring can take up tons of time. PEOs can handle the logistics of crafting job descriptions as well as performing background checks, freeing a lot of time while ensuring you’ve got a great pipeline of talent.

These are just a few common examples of how home service companies engage PEOs, though really the options here are limitless; think simplified payroll, pay-as-you-go workers comp options, easier tax filing and more.

Choosing a PEO for Your Company

It’s important to note that there are many PEOs that don’t offer their services to plumbers, electricians, or other home service professionals. Protective of their workers comp rate, they prefer to avoid working in these high-risk fields.

Other PEOs are much more interested in taking on home service companies, providing pooling solutions that allow these businesses to lower their workers comp rates (particularly if they already have a tarnished history of claims).

As you consider your options, make sure you actively seek a PEO that specializes in the home service environment, and can provide the range of services you need to help your business succeed.


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