Glints TalentHubLogin
Switch Language
Employment Law
Benefits Administration with a PEO: What to Expect
Safira Adnin
October 7, 2024

Managing employee benefits can feel like a full-time job—whether it’s health insurance, retirement plans, or other perks. It’s complex, time-consuming, and let’s be honest, not exactly the most exciting part of running a business. But here’s where a Professional Employer Organisation (PEO) can step in to lighten the load.

In this article, we’ll dive into how PEOs handle benefits administration, the key advantages they offer, and how their services contribute to higher employee satisfaction.

What Benefits Do PEOs Manage?

PEOs are all about making life easier for businesses, especially when it comes to employee benefits. They manage the kind of benefits that not only make your team happy but also help your company attract and keep top talent. Here’s a look at the core benefits PEOs typically manage:

1. Health Insurance and Wellness Programs

We all know health insurance is one of the most important benefits for employees. But it’s not always easy for smaller companies to offer comprehensive healthcare plans. With a PEO, that changes. PEOs offer access to group health insurance plans that are usually only available to larger companies, and they also throw in wellness programs like mental health support or fitness incentives.

  • Better Rates, Better Coverage: PEOs pool together multiple businesses to get better rates on healthcare plans.
  • Wellness Programs: From mental health support to wellness incentives, PEOs offer programs that go beyond basic coverage to keep your team feeling their best.

Why This Matters: According to Glassdoor, 60% of employees say health benefits are a major reason they stay with a company. Offering competitive healthcare options can really help you keep your top talent happy.

2. Retirement Plans

Retirement might seem far away, but for employees, it’s a big deal. Offering a solid retirement plan can make a huge difference in how employees view your company. PEOs can set up and manage 401(k) plans (or similar options) so your team can feel secure about their future.

  • Access to 401(k) Plans: PEOs manage the entire process, from selecting the right plan to making sure everything complies with regulations.
  • Employer Matching Contributions: PEOs can help you set up employer-matching contributions, making your retirement plan even more attractive to employees.

Why This Matters: SHRM found that 88% of employees consider retirement benefits a crucial factor in job satisfaction. Having a good retirement plan makes your company more appealing in the long run.

3. Extra Perks and Benefits

Beyond health insurance and retirement, PEOs manage a bunch of other perks that make working at your company more rewarding:

  • Paid Time Off (PTO): PEOs help create and manage PTO policies, ensuring your team gets the work-life balance they need.
  • Life and Disability Insurance: PEOs offer access to life insurance and long-term disability coverage, giving your employees extra financial security.
  • Employee Assistance Programs (EAPs): From counselling services to financial planning, PEOs offer EAPs to help employees deal with personal and work-related challenges.

Why This Matters: According to SHRM, 80% of employees would choose a job with better benefits over one that offers a higher salary. Offering these extra perks helps you stand out as an employer that cares.

How Do PEOs Make Benefits Administration Easier?

Managing employee benefits isn’t just about offering perks—it’s about handling the ongoing admin work that comes with it. PEOs simplify the entire process so you can focus on running your business. Here’s how they make it all easier:

1. Staying on Top of Compliance

Keeping up with the latest laws and regulations around employee benefits is tough. PEOs take care of this for you, ensuring everything is compliant and up to date. Whether it’s tax filings, legal documentation, or changes in healthcare laws, PEOs have it covered.

  • Reduce Risk: By letting a PEO handle compliance, you lower the risk of penalties or legal issues tied to employee benefits.

2. Clear Communication and Support for Employees

One of the biggest challenges businesses face is communicating benefits clearly to employees. PEOs handle this by offering easy-to-understand materials and direct support, so employees can easily navigate their benefits and make informed choices.

  • Employee Portals: PEOs usually offer online portals where employees can access information about their benefits and manage them easily.
  • Dedicated Support Teams: If employees have questions, PEOs provide dedicated support teams to help out.

Why This Matters: When employees understand and can easily access their benefits, they feel more valued and supported at work, which boosts their satisfaction.

3. Ongoing Management and Adjustments

PEOs don’t just set up benefits and walk away. They’re involved in the ongoing management of your benefits program, ensuring everything runs smoothly year after year.

  • Open Enrollment Management: PEOs handle the annual open enrollment process, ensuring employees understand their options and can make informed decisions.
  • Flexible Adjustments: As your business grows, PEOs help you adjust benefits to meet the evolving needs of your team.

Why This Matters: When benefits are managed well and kept up to date, employees are more likely to feel secure and happy at work, reducing turnover.

Why a PEO Is Good for Your Business

Working with a PEO doesn’t just make benefits easier to manage—it brings real value to your business. Here’s how:

  • Cost Savings: PEOs can negotiate better rates for benefits, which means you can offer top-notch perks at a lower cost.
  • Improved Retention: Offering competitive benefits is one of the best ways to keep employees happy and reduce turnover.
  • Expertise: PEOs bring years of experience in benefits management, compliance, and HR, so you can trust that you’re in good hands.

Conclusion: Is a PEO Right for You?

If managing employee benefits feels like a never-ending task, partnering with a PEO could be the perfect solution. A PEO takes care of the admin side, helps you offer competitive benefits, and ensures your business stays compliant, all while boosting employee satisfaction.

Want to learn more about how a PEO can help your business with benefits administration? Download our PEO Guide to get a deeper understanding of what PEOs do and how they can support your growth.

Join our Employers Community!
Subscribe to our newsletter to receive all our latest news and offers delivered right to your desk.

Featured Resource

Download Now

Connect With Us

Never miss a beat! Follow our social media channels for specially curated insights, knowledge and best practices to help you hire, retain and improve on your human capital.

Recent Posts