Many modern employers have a solid understanding of the need to provide their employees with a range of benefits. Employee benefits are expected by mo
Many modern employers have a solid understanding of the need to provide their employees with a range of benefits. Employee benefits are expected by most professionals today and it’s harder for companies to attract the top talent if they are not providing some additional perks to a simple basic salary. Employers who provide candidates with access to cheaper health insurance, retirement plans, and even nice little perks like discounts on gym memberships, grocery shopping and vacations through an employee benefits program are always going to be more attractive than those who do not.
But as a small business, providing a range of benefits to your employees might not be in your budget. When you have to save money and you’re not able to access the cheaper employee benefit prices that the larger companies enjoy, it might not be possible to give your employees the perks that you’d like to offer. That’s where a PEO comes in. Forming a co-employer relationship with a PEO allows them to facilitate better employee benefits for your company at prices that are usually reserved for larger organizations.
How Does a PEO Work?
In terms of employee benefits, a PEO is able to form co-employer relationships with several small to medium businesses, allowing them to take on a number of employer responsibilities including managing some aspects of human resources and therefore employee benefits. By grouping the number of companies that they work with together, they are able to get much better deals on coveted benefits like health insurance and retirement plans by getting cheaper prices per employee thanks to the higher number of employees in the group.
So, what benefits can you get for your employees by working with a PEO?
Today, medical, health, dental and vision insurance plans can be quite costly, so it’s no surprise that many employees are looking for work in a business that provides this to them as part of the job. An employer that covers medical insurance costs is certainly one that is highly sought-after and by providing this benefit, you can attract more talented professionals to come and work for you. A PEO can help you get better deals on insurance plans for your employees by grouping you together with a range of other small businesses and taking advantage of prices that tend to be reserved for organizations with hundreds or thousands of employees. As a result, your small business may be able to provide employees with insurance benefits similar to those provided by Fortune 500 companies and other big industry names.
Today, saving for retirement is a struggle for many people thanks to the mounting cost of living with wages that don’t always match up. So, it’s no surprise that many professionals actively look for companies to work for where they will get assistance with saving up for retirement. A PEO will be able to provide you with access to retirement plans such as a 401(k) that you can offer to your employees to help them save towards their golden years. Since most people want to ensure that they have a nest egg to retire with, you can be assured that providing a good retirement plan benefit with employer contributions will help your company attract more talented employees that can help your business thrive.
Employee Assistance Program
A PEO can help you provide a benefit that helps your employees resolve issues and live more satisfying personal lives. An employee assistance program (EAP) is a work-based intervention program that is designed to support and assist employees with resolving a range of personal problems such as family issues, marital problems, mental health conditions, financial problems or addiction that might be having an adverse effect on the employee’s performance. Providing an employee assistance program gives employees in trouble somewhere to turn for the help and support that they need through tough times and will develop more trust and loyalty to an employer that genuinely cares about ensuring employees are able to improve their lives as a whole.
Disability and Accident Insurance
Many people are rightly worried about what would happen with their finances if they were unable to work for an extended period of time due to illness or injury. A good PEO can work with you to provide peace of mind to your employees by offering disability insurance on either a short-term or long-term basis. This benefit provides employees with the option to continue earning an income as normal if they are injured or become ill and need to take time off work. Another similar type of insurance that you may want to consider offering through a PEO is accident insurance, which covers the cost of medical and out-of-pocket expenses that an employee may incur after an accident, such as emergency treatment, hospital stays and transportation.
Flexible Spending Account
A flexible spending account or flexible spending arrangement is an account that employees can put money into to use for certain out-of-pocket healthcare costs that are not covered by their medical insurance. Since employees do not pay tax on this money, they are able to save an amount that is equal to the taxes that they would have paid on the money that is set aside. Employers can also opt into making contributions to employees’ flexible spending accounts, but this is optional.
Health, Wellness and Lifestyle Benefits
There are several options for benefits and perks that you can offer to your employees to make their lives easier and ensure that working for your company is as enjoyable as possible. Discounted grocery shopping, gym and fitness center memberships, vacations and more are just some of the things that a good PEO can help you get for your employees and put perks in place that they will love using. There is a range of benefits programs that you can sign up for that allow your employees to access their range of benefits and perks online and use them as and when they wish. And, providing employees with a way to save money in their everyday life and get more out of the things that they love is certainly going to earn you even more points as a great employer.
International Worker Benefits
While most employers know which benefits are expected at home in the US and what’s going to entice the top talent, things might be different if you are planning to expand your business into an overseas location. For example, setting up your business in a country that has a national health service means that providing medical insurance is not going to help your company stand out from the crowd like it might at home. A good Taiwan PEO, for example, will have extensive knowledge of the perks and benefits that are going to attract local, talented employees to your business. This PEO provider; New Horizons Global Partners, can work with your company to help you successfully set up overseas and provide a range of benefits that are relevant to the area and will get the attention of professionals who can help the new expansion thrive from the start.
Today, employees want much more than just a base rate of pay. Providing excellent employee benefits with the help of a PEO will help you attract and retain the top talent.