Before you outsource your employees to a PEO…

A Professional Employer Organization provides HR outsourced services including payroll, benefits, hiring and training. The unique aspect of the PEO model is that a company’s employees are actually employed by the PEO and the PEO leases the employees back to the company. This can be a solid solution for many small and mid-sized organizations who don’t have the headcount, time or experience to effectively manage the myriad of compliance requirements in terms of HR. PEOs can provide executives with peace of mind and even help to reduce cost in some instances. The primary focus is on providing administrative services related to HR.

But what if you don’t want to completely outsource your talent? What if you want to maintain control of HR vendors, systems, policies and processes? What if you have more complex needs than administrative support? What if you’re finding the expense to be cost-prohibitive as you scale? What if you need a strategist and not an administrator? What if you don’t want to be lumped in with another organizations workers comp experience and unemployment rates? If you’re not happy with the service, how complicated will it be to untangle a co-employment status?

A Talent Management Partner is an ideal, and often preferred solution to the old traditional PEO model. A Talent Management Partner can work with internal and external payroll and benefit partners you’ve selected to ensure that your organization’s unique polices, processes and offerings are compliant, robust and aligned with both your culture, budget and mission. A talent management partner focuses on much more than just administrative record keeping and systems, without the hassle of becoming the “employer of record”. Your ideal partner can help with:

  • Refining your people strategy
  • Fostering your culture
  • Employment Branding & Recruiting Strategies and Tools
  • Implementing Systems and Solutions that are specific to your unique industry and organization
  • Employee Relations Management – performance, leaves of absence, discipline, and more… and coming on-site to walk alongside managers to navigate, communicate, coach and resolve complex issues
  • Implementing HR Best Practices that align with your culture, objectives, etc.
  • Creating custom training and talent development offerings, including Leadership Development and Executive Coaching
  • Recommending HR-related technology to enable self-service and streamline all HR processes

Again, companies who don’t want to “deal” with employees may find limited value in outsourcing them under a PEO’s co-employment solution. Leaders who highly value their talent, and who want to attract, develop and retain great team members are better served by a Talent Management Partner. It’s a great idea to further delve into the pros and cons of each, as well as the fine print before signing on the dotted line.


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