You probably know that a professional employer organization (PEO) can help you with benefits and payroll. But that's not all it has to offer. Many PEOs offer several services that can be just as, if not more, beneficial to your employees and organization.
Below are five little-known PEO services to consider before you choose a company.
1. Compensation services
Did you know that a PEO may offer compensation services, beyond salary surveys? With some PEOs, you can get advice directly from people familiar with the ins and outs of employee compensation.
And that's why they can help you with:
Compensation planning - Aligning your company's mission, culture, business and human resource strategies with your compensation philosophy or strategy.
Compensation philosophy/strategy - Developing a compensation structure that brings together the various elements of compensation, such as base salary, short- and long-term incentives, compliance, market competitiveness, internal alignment and affordability.
Pay-for-strategic value - Helping align your employees' pay with their projected contributions toward achieving your company's strategic priorities.
It's important to note that these seasoned PEO professionals often have knowledge and experience from multiple industries. This enables you to create a meaningful company compensation program that meets the expectations of talent in your industry and today's market.
Plus, should you need their help during uncertain economic times, PEOs can help navigate those challenges, too.
2. Strategic planning
Without a strategic plan, an organization has no focus. Some PEOs have HR specialists who can help create your organization's mission, vision and value statements.
These specialists will work to gain an understanding of your organization's products and services, fundamental business objectives, as well as the value you place on your human capital. Moreover, they will collaborate with various groups within your organization to deliver advice that's reflective of your brand and culture. This includes having business acumen-understanding how your company makes money and providing guidance from a human talent perspective to improve the money-making process.
As part of their work, a PEO's HR specialists may also help you collect and measure HR and organizational data related to turnover and retention, labor costs, pay equity, diversity and more. Known as "people analytics," these data-driven insights can improve the way you do business and provide clear benchmarks for improvement moving forward.
By asking the right questions and discovering what your organization truly values, PEO HR specialists help focus on your organization's vision for the next one, three and five years.
Based on this information, the specialist can then help you develop procedures and processes, such as a human capital management plan, which will support your strategic objectives.
And with your organization's talent and goals aligned, it's more likely that you'll successfully tackle unforeseen challenges and meet your goals.
3. Succession planning
Change is constant for all organizations. Whether an employee is promoted, retiring or your company is going into a growth mode, succession planning is vital to ensuring your business can keep moving forward, despite changes. This can help you understand what knowledge, skills and abilities currently exist within your organization and where there's opportunity for development.
This analysis can help you start to bridge the talent gap.
Often a PEO can help you develop the people on your staff or, at least, determine whether current employees could be the next leaders in your organization. When done correctly, this process can increase loyalty and employee engagement, while reducing downtime and recruitment costs when people leave your company.
Succession planning is especially critical during economic cycles when talent pools are limited. Employees who are provided continual development opportunities with challenging on-the-job experiences are more likely to stay longer with your organization.
4. Corporate coaching
Coaching helps people tap into their inner purpose and passion, then connect it with outer goals and tasks to bring about extraordinary and sustainable results.
Employees who have participated in on-going coaching have cited many benefits. These include improved work performance, communication skills, time management and team effectiveness. Such benefits often lead to increased productivity across your entire organization - a significant return on investment (ROI).
Professional coaching is a growing industry that can cost a substantial amount of money should you try to obtain these services on your own.
But, as a PEO client, professional coaching services may be included in your service package. Many PEOs provide certified training and development specialists who can help you identify your company's training needs, as well as facilitate various types of training within your organization.
5. Employee surveys
Administering employee surveys is a great way to assess what employees are thinking.
Surveys measure your staff's perception of their work environment, leadership team and company culture. Some of the areas measured may include communication, commitment, trust, engagement and benefits.
There are different types of surveys available, including (but not limited to):
Employee opinion or climate
In addition, pulse surveys are becoming more prevalent, as they allow employers to quickly assess a different topic each month. As the name suggests, employers can "keep a finger on the pulse" of employee attitudes toward various topics, be they evergreen or more immediate (e.g., pandemic concerns, DEI, etc.).
The value of employee surveys lies in the results and the discussions that occur between your company and your PEO about the results. A good PEO will deliver an in-depth presentation that explains the statistical data, what it means to your organization and recommends focused action plans.
Organizations that repeat this process regularly have the benefit of tapping into historical data to determine trends and relate back to other HR measurements. The collaborative process that follows enables your organization to develop a strategy that can be effectively communicated and implemented across your entire workforce.
Keep this in mind about PEO services
Specific PEO services are going to vary from company to company. That's why it's always best to do your research - and look closely at what each PEO has to offer before deciding which one offers the most value and ROI to your organization.
Curious to learn more about how a PEO can offer you access to better employee benefits, reduced liabilities and dedicated HR support? Download our free e-book, HR outsourcing: A step-by-step guide to professional employer organizations (PEOs).