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Showing posts with the label PEO

Instead of a PEO, Consider Outsourced Human Resource Professionals

So, in my post last week, I noted that one of the speakers at a recent panel I was on had suggested using a PEO for startups. And for some businesses, it may be worth the cost. But the truth, of course, is that for many employers, PEOs aren’t the best choice. They may be an unnecessary cost and don’t solve the issues they really need fixing. PEOs can fail to file taxes properly, for example. PEOs won’t assume liability if you misclassify an employee either. And a PEO can impose restrictions for risks that you would otherwise feel comfortable taking. But perhaps most of all, PEOs can feel impersonal. Sure, they are a co-employer, but there isn’t a PEO staff person on site — one that can provide the personal touch of an HR person. Does that mean that you ought to hire an in-house human resources person? Not necessarily. There are several great local options and I’ve interviewed a few previously on this blog.   This is where an outside HR consu...

All the Ways Startups and New Employers Can Get Into Trouble

Last night, I had the opportunity (again) to sit on a panel discussion sponsored by the Accelerator for Biosciences in Connecticut (ABCT) to talk about operational challenges for new companies and the issues associated with hiring. ABCT is one of those success stories in Connecticut that should get more press than it does.  It’s a competitive entry, six-month long program for entrepreneurial research students and faculty, MBA’s and MD’s interested in forming new ventures in biosciences. One of the themes of the discussion was that hiring employees is not for amateurs anymore. As another panel member noted, there are just far too many requirements now (training, paperwork, policies) to just shoot from the hip. And yet, new employers still need to hire staff in order to grow. One solution we discussed was giving greater consideration to PEOs, such as ADP, Paychex or Insperity (just to name a few names — not endorsing).  There are various services that sma...