Human Resourcing Solutions for the Aesthetic Practice
As a healthcare provider, your main priority is caring for your patients. Managing human resource (HR) tasks like payroll, benefits and compliance can take up valuable time and energy. You could hire an HR professional to join your staff or simply partner with a Professional Employer Organization (PEO). A PEO can help you handle the tricky world of HR and is an ideal option for a small business – so you can focus on what you do best.
October 28, 2024
As a healthcare provider, your main priority is caring for your patients. Managing human resource (HR) tasks like payroll, benefits and compliance can take up valuable time and energy. You could hire an HR professional to join your staff or simply partner with a Professional Employer Organization (PEO). A PEO can help you handle the tricky world of HR and is an ideal option for a small business – so you can focus on what you do best.
What is a PEO?
A PEO is a partner for your practice’s HR needs that offers a host of helpful services:
• Processing payroll
• Filing taxes
• Managing benefits
• Dealing with workers’ compensation
• Providing HR guidance
According to the National Association of Professional Employer Organizations (NAPEO), small businesses that outsource their HR to a PEO are about 50% less likely to go out of business and may grow 7% to 9%
faster and experience 10% to 14% lower employee turnover.
PEO as a Strategic Partner
Partnering with a PEO involves establishing a co-employment engagement where you share certain employer responsibilities and risks. You keep control of your practice’s day-to-day operations and patient care. The PEO becomes a strategic partner in managing your HR. This shared responsibility can help keep your HR costs steady, reduce the risks that come with being an employer, and give you more time to focus on strategic, revenue building aspects of growing your practice.
Working with a PEO: Pros and Cons
As with any business decision, partnering with a PEO offers clear benefits as well as tradeoffs to consider:
Benefits
Shared liability: A PEO shares the risk and liability of being an employer. This can be a huge help in reducing liability concerning taxes, workers’ compensation and state unemployment – especially for small businesses.
Better benefits at lower costs: PEOs have the buying power to get top-notch benefits (e.g., health insurance, life insurance, disability coverage, etc.) at competitive prices. This can help you attract and keep the best talent.
Streamlined payroll and HR: Say goodbye to the headache of managing payroll and HR tasks. A PEO can handle it all, freeing up your time to focus on patients and growing your practice.
Lower overhead: Outsourcing HR to a PEO can help cut overhead costs. You will not need to hire a full-time HR staff member.
Expertise and guidance: PEOs have a ton of HR knowledge and experience. They can help ensure your practice does well and stays compliant.
Considerations
Less control: Partnering with a PEO means giving up some control over your HR decisions and processes. You may need to adjust to the PEO’s systems and procedures. Limited benefits customization: While you will have access to great benefits, you may have less flexibility in tailoring your plan to your practice’s specific needs.
Risk of non-compliance: You will face fines and penalties if your PEO does not file your taxes on your behalf on time. Avoid this risk by partnering with a PEO that guarantees compliance and does full-service payroll.
Cost considerations: While a PEO can offer cost savings in the long run, the upfront costs may be higher than handling HR in-house. Carefully evaluate the pricing structure and ensure the value aligns with your budget.
Potential for impersonal service: Some PEOs will not give your practice the personalized attention it deserves. Find one that values building strong relationships and delivering exceptional service.
About the Author
Vahe Tirakyan
Vahe is the chief executive officer and founder of MD Logica. He has worked with some of the greatest names in the industry, and helped multiple practitioners build their practices from the ground up into multi-million dollar companies. He also contributes to medical and business publications, as well as lecturing at conferences around the world to share his knowledge and expertise.