California, and more specifically, Silicon Valley is an attractive place for tech startups. Tech startups are popping up all over, but many of them fail for various reasons. One of the reasons that tech startups fail is lack of human resource help. In this article, we are going to talk about the five reasons your tech company needs to work with a Professional Employer Organization (PEO).
- Allows You to Focus on What Is Important
As a tech startup, there are many things that you are working on to make sure the bugs are out, that new features can come to market, that the customers are happy with the final product and more. With all of these things pulling at your attention, you are probably already dealing with a lack of focus. When you throw in an ever-growing HR department, it can be the last straw.
When you have a PEO in your corner that understands the laws of California and is constantly educating themselves in legal matters, you can rest assured that your most valuable resources are being taken care of well. Being able to keep your employees happy will reduce turnover which means less money is going out hiring new employees.
- Simplifies Processes & Workflow
Working with a PEO will take the complication out of working with HR. PEO companies usually already have a working process in place that is going to allow you to get the results that you want without having to figure out what the best way to do something is. Whether it is dealing with a sexual harassment case or it is figuring out how to train new employees, the professionals at these companies are likely to have done it 10s if not 100s of times over throughout their career.
One of the major problems that companies run into is lack of process and procedure, so taking care of this right away will keep you from dealing with this problem long term.
- Helps You with Compliance
California is known to have some of the most complicated and confusing laws and regulations. Whether it is the Affordable Healthcare Act, the proper way to hire and fire people or if it is another issue that you are not sure how to deal with, the PEO company knows how to work through these issues.
One of the things you need to have in place is a proper employee handbook. If you aren’t aware of everything that needs to go in your handbook, you could fall behind and miss out on important provisions that should be in your handbook. If you already have an employee handbook in place, you can speak with the PEO and see if there need to be any revisions. It is most likely that there will need to be revisions since this area is not your area of expertise.
- Usually Less Expensive Compared to In-House HR Department
If you have an in-house HR, you know how expensive it can be to bring on an HR director, hire the rest of the employees after spending countless hours reviewing resumes and looking over other important information before making the hiring decision. Even if you do a good job vetting potential talent, you are still going to have to deal with turnover and annoyances related to HR.
On the other hand, instead of working with an in-house HR department, you could work with a PEO company that deals with their challenges, so you don’t have to see or hear about them. You can also find a company that will meet you somewhere in the middle where they are high touch, but also allow you to self-service some areas that you want to have more control over.
- Plug and Play Solution
When you are a tech startup that wants to get into the thick of things as quickly as possible, it can be challenging to put everything on halt to make sure that you are taking care of the admin processes and other things that are important yet not closely related to growth like you are used to working on. Instead of frustrating yourself and trying to find one solution here and one solution there, you can speak with a proper PEO company that can help you with all of your admin areas from employee benefits to compliance issues.
Being able to get everything you need from one place will give you more control and will ensure that you do not lose anything between the cracks because of oversight. Instead, you will have a powerful ally that has your best interests at heart because they want to keep the relationship going as long as possible.
Conclusion
When you are looking for the perfect PEO company for your needs, you should make sure to do your due diligence. Someone’s fancy sales page or blog should not be where you conclude your research. It is important that you look further into their company to see how they work. Do they have good reviews online? Do they offer references to which you can speak? What is their reputation in the California area?
Understanding whom you are going to be working with is important and making sure that you are partnering with a company that can work in harmony with the way that you do things is key. Get started on the search because a PEO can greatly benefit your company.
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