In recent years, construction companies have been booming in many parts of the country, while cost pressures have forced them to plan, manage, and execute projects better. As construction companies work hard to control costs, take advantage of business opportunities, and adapt to trends, they may find that resources and finances are stretched thin. This is the perfect time to seek help from a PEO.
A Professional Employer Organization (PEO) takes on key administrative burdens – in areas such as payroll, human resources, workers’ compensation insurance, and more – to reduce an employer’s workload and help them manage risk and stay in compliance.
When businesses work with a PEO, they engage in a co-employment relationship. This partnership means that the PEO becomes responsible for wages, filing taxes, assisting with compliance, offering advice on HR, and providing workers’ compensation insurance, just to name a few. Partnering with a PEO allows employers to offload certain responsibilities and invest more energy in business growth.
Most businesses in the construction industry require workers’ comp coverage by law – not to mention, most businesses want to keep their workers safe and mitigate liability. Because a significant single claim can put an entire business as risk, gaining comprehensive and affordable workers’ comp coverage is a must, especially for a labor-intensive industry like construction.
Individual policies have several drawbacks, such as high upfront premiums and annual audits. But, when you partner with a PEO, you join a large group policy. This typically means competitive rates, a flexible payment schedule, and the elimination of the dreaded annual audit. Plus, the PEO provides claims management support, so you don’t have to worry about it.
Partnering with a PEO is a great way for construction companies to save money and reduce the headaches associated with workers’ compensation.
The nature of the co-employment relationship incentivizes a PEO to look out for the interests of its clients. It can be especially effective at mitigating safety issues and reducing risk within the construction industry.
A PEO can help create a safer work environment and reduce workplace accidents by implementing safety training and procedures and by offering guidance to ensure compliance with regulations. This service is particularly helpful for small-to-medium-sized construction businesses that may not have the time to stay on top of safety concerns. Here are a few examples of the safety guidance PEOs can provide to businesses in the construction industry:
A PEO also offers guidance to help reduce employment-related lawsuits. They can provide advice on topics such as FMLA, ADA, FLSA, immigration compliance, working with independent construction contractors, and more. And, in the event of an employee claim, employers are covered by the PEO’s Employment Practices Liability Insurance (EPLI) master plan.
HR management describes oversight of all things related to managing an organization’s human capital or workforce. It’s a critically important aspect of running a successful construction business, but can also be incredibly time-consuming, especially for smaller companies. Work with a PEO, and here are just a few of the tasks they’ll handle:
Working with a PEO is an excellent way to save time and money, reduce risk, and keep small-to-medium-sized businesses in competition with larger ones. If you’re interested in learning more about how a PEO like FrankCrum can help your construction business, contact us today.