It’s no secret that starting and running a small business is no small feat. Business owners are often pulled in what feels like a million directions — striving to ensure the business is growing, clients are happy, and that they actually get to sleep at night (or at least some nights!). But if you ask many entrepreneurs, they will tell you the one thing they never imagined would be so hard was managing their employees (even if they only have two) and providing the HR and benefits today’s top talent requires.
As the workforce continues to undergo significant generational shifts and increasing competition in the war for talent, startups – by sheer nature of their size — are faced with challenges in delivering the attractive benefits that come more easily to larger organizations. As a result, working with a Professional Employer Organization (PEO) is a popular option that many entrepreneurs are considering.
ADP TotalSource®, the largest PEO in the United States with more than 400,000 worksite employees, has traditionally served small businesses with more than 10 employees. Today, I’m proud to announce that ADP TotalSource will now offer very small firms like startups, entrepreneurs, and professional services companies the opportunity to provide their employees benefits and HR resources similar to those enjoyed by employees in FORTUNE 500® companies. In fact, companies with as few as two employees may be able to benefit from this offer.
This announcement is important to me because I’m excited to help these lean startups focus on mission-critical objectives by freeing them from the HR, benefits management and compliance challenges that every business faces. We want to help them develop their businesses and serve their customers.
To partner with a PEO, a business simply enters into a co-employment relationship. In a co-employment relationship the business owner would continue to handle the day-to-day management of their employees, while ADP TotalSource would serve as a comprehensive HR partner for employee benefits, payroll, compliance, risk management, workplace safety, recruiting, and more. In addition, as part of this relationship, each ADP TotalSource client company is connected to dedicated HR professionals who know and understand their business objectives and can help make strategic HR decisions to help each client company succeed.
In the war for talent, benefits are key, especially for a startup or small business that needs to attract and retain top talent that will help to drive their business forward. PEOs are an important tool that can help businesses of all sizes stay ahead of the curve to advance their business objectives, recruit top talent, and reduce employee turnover.