This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Outsource Human Resources and Meet Your New PEO

One big plus for small-business employees is that they can access benefits through a PEO they might not otherwise be offered. A company of 10 or 20 employees might not be able to offer health care options to its workers, but a PEO, which is legally considered an "employer" for thousands of employees at different companies, can provide a wider range of health care options and better pricing. The same goes for retirement plans and other benefits. A PEO therefore, might help a small company attract a higher caliber of worker because they can offer a more competitive benefits package.

For many small-business owners, PEOs take away the headache of "people management" and free them up to focus on operations. Issues of workplace liability and federal regulations are all handled by someone else with expertise in those areas. But just as a PEO takes on certain responsibilities, they are granted certain rights. As co-employers, they are allowed to hire, fire and reassign employees as necessary. A small-business owner that brings in a PEO must be prepared to give up a certain amount of control and autonomy.

Businesses with only a handful of employees might not need such comprehensive services. They can get along just fine by outsourcing payroll and benefits without needing a daily, onsite human resources presence.

But what about when a crisis erupts? When a disgruntled employee threatens to bring a discrimination lawsuit or when you need help hiring a manager or just need advice on how to handle performance reviews? Specialized human resource consulting companies are available on a retainer or on an as-needed basis for specific projects.

Human-resources consultants can also be brought aboard for more strategic, long-term projects, such as helping craft job descriptions and advise on salaries; offering training and team-building programs to employees; recruiting employees for positions that require specialized expertise; and crafting onboarding programs that ease new employees into the workplace.

Once a business starts hiring, it takes on a whole variety of risks, regulations and potential headaches that can distract from an owner from his or her core mission. The wide variety of human-resources options allow small-business owner to craft an outsourcing solution that works best for them and for the long-term health of their company.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADP $81.74 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs