It’s often only in times of crisis, that the true value of risk management is realised.
Of course, running any business comes with some risks. Someone could injure themselves on your premises, or an employee embezzling funds from your company account.
But, when you’re aware and prepared for any potential situation your company could face, you’ll save money and minimalize disruption.
Risk management is a must for every business. This is where a PEO can help.
What is risk management?
The process of risk management is identifying potential risks and challenges, then planning ways to avoid these in the best way.
When you work with a PEO, they help minimize risk in several areas of your business.
Health and safety
As part of the risk management strategy, all things health and safety are planned and implemented. This includes health cover and workers compensation. Different countries have different levels and specifications required to cover employers and their staff. Being aware of this is vital to remain compliant.
A PEO can prevent you spending millions in losses. With expert knowledge of safety procedures and programs to keep your employees safe, you can rest assured your business will be following the appropriate safety guidelines.
If Covid-19 has taught us one thing, it’s the need to prepare for the unexpected. As part of a risk management strategy, we help you create a business continuity plan. So, that in times of crisis, your business will have the measures in place to facilitate recovery and continuity.
Employee acquisition and retention
There are several risks that come with hiring new employees. Are they right for your business? Do you have the right incentives in place for them to stay? If not, hiring can be a costly and time-consuming process.
With a PEO, they assist you with the hiring process. Plus, you gain access to employee benefits including health insurance, educational benefits, dental and vision care, retirement savings plans and more.
Business who work with PEOs on average, have a 10 to 14 percent lower employee turnover and an average ROI of 27%.
When you have a PEO, you can save both time and money in the following five HR related areas:
- HR personnel costs
- HR benefits
- Workers compensation
- Unemployment insurance
- Other HR external expenditures in areas including payroll services, benefits etc
This frees up your resources so you can spend time focusing on growing your business, without the burden of HR admin.
A study done by NAPEO in 2019 of business owners, found PEOs provide a conservative estimate of 21% cost savings of HR administration.
Expanding your business into another country comes with risks and challenges but working with a PEO will help you grow your business and manage your risks.
In the words of Benjamin Franklin ‘by failing to prepare, you are preparing to fail.’
Get in touch with a member of our global expansion team today to find out how we can help.