We come across startup companies all the time and have found that the PEO relationship is the best solution, as it allows the business owners to focus on their core business and let the PEO do its human resources thing. The time and money saved with a PEO can make or break a startup.
Consider this…if you are a startup, or consulting to a startup company, then the best way to insure success is to focus on your core competencies, and not HR. Your PEO will handle most functions…with the main exception of deciding upon your staff. Otherwise, payroll, benefits (including health, dental, vision, 401k, and various supplementary insurances), workers compensation and risk management, payroll taxes, etc. are all responsibilities that are passed along to the PEO. Imagine the time savings!
In order to obtain a quote from a PEO for services, a startup will need to supply some basic projections on head count and gross payroll, as well as job risk description, so the PEO can place the employees in the proper workers compensation code. The PEO will do its due diligence and research the background of the principles of the startup, but that’s about it.
If you are a startup, and are looking towards outsourcing your HR, then PEO may be for you.