What to Look for When Choosing a PEO in Maryland
Choosing a Professional Employer Organization (PEO) in Maryland can help small businesses and their employees thrive in this economically vibrant state. In 2015, Maryland was ranked third in the nation in “Innovation & Entrepreneurship” by the U.S. Department of Commerce in its annual Enterprising States and first for businesses and jobs in science, technology, engineering, and mathematics (STEM). More than 400,000 small businesses choose Maryland as their home.
Small businesses are very attractive to workers because employees can see firsthand their impact. In small businesses, employees often have opportunities to cross-train and learn new skills. They build relationships with people at all levels of the organization, from entry-level workers to executives and owners.
The creativity and flexibility found in small businesses appeal to many workers, especially Millennials and Gen Z workers.
But there are two critical areas that small businesses are at a disadvantage. Small businesses often do not have the buying power to compete with larger ones on benefits packages and do not have access to higher-end human resource information systems.
There is a way to even the playing field. Professional Employer Organizations (PEOs) can help small businesses compete with large ones by leveraging their buying power and implementing systems that would typically be out of reach.
You enter a co-employer relationship when you contract with a Professional Employer Organization. You retain the hiring and development of your employees while the PEO becomes the employer of record for tax purposes. Your workforce is enrolled in benefits through the PEO, which has access to world-class benefits due to the high number of employees. Your small business gains the buying power of a large employer while retaining the agility and close connection of small businesses. This arrangement is a highly attractive combination for many job seekers.
There are many benefits to partnering with a PEO. Companies that contract with PEOs are more likely to stay in business and grow at higher rates than their other organizations. Turnover is reduced, and there is peace of mind that your practices are in compliance and risks are reduced.
It’s no wonder many businesses thrive in PEO relationships. They can focus on the core value, know that their teams have access to world-class benefits thanks to the buying power of their partner, and relax knowing they have taken a significant step towards risk reduction.
Consider These Tips When Looking for a PEO
- Identify potential Professional Employer Organizations with a history of doing business in your region or state. Employment regulations can vary widely from state to state. You will want a PEO familiar with your state’s laws and regulations.
- Check out the benefits that will be offered to employees. Does the PEO offer a full range of benefits, including medical, dental, and vision coverage, a healthcare flexible spending account, and life and disability benefits? Do they sponsor a 401(k) plan?
- Look for a PEO that offers initial consultations and will be able to individualize your plan of service. Your business is unique, and you will want a partner who can design services with your individual needs in mind.
- Make sure your PEO has the resources to meet current and future needs. Don’t be afraid to ask for information on their growth and pinch points.
- Assess the PEO from the point of view of a business similar to yours. In addition to testimonials and references, ask if you can interview current and former clients.
- Make sure there is good alignment between your business’s values and that of the PEO. This partnership should be lasting. Good alignment is good for your employees.
- Find out about their team. What is the team’s expertise? How long have they been in business?
- Make sure that the Professional Employer Organization is large enough to offer your team competitive benefits but small enough to provide your company with the individual attention you need.
Contact Us Today
If you are searching for PEO services in Maryland, TANDIUM Corporation is a Maryland-based company specializing in meeting the Human Resources, Payroll, and Benefits needs of businesses and non-profit organizations. Our team of experienced Human Resources Specialists can meet with you to help determine if a PEO will help your business grow. Contact us today to schedule a free initial consultation.