As the HR director for a large senior living community, I’ve spent many sleepless nights lately worrying about our staffing situation and compliance risks. The challenges never end: recruiting and retaining enough caregivers, keeping up with changing labor laws, offering affordable benefits, managing workers’ comp claims, and so much more.
Some days I don’t even know where to start. I have an incredible team, but we are stretched way too thin trying to handle all of the administrative duties on top of our normal HR responsibilities. Simple things like onboardings and terminations create huge work backlogs and compliance headaches. Don’t even get me started on the fun of annually re-enrolling our entire workforce for benefits!
It always feels like a few small missteps could lead to costly fines or lawsuits that devastate our board and the community we serve. The liability and risks keep me up at night worrying if we’ve dotted every “i“ and crossed every “t”. There’s got to be a better way to get my life back while protecting our organization.
A Hard Look at the PEO Staffing Solution
During one of my desperate 3 a.m. online search binges for “HR help,” I stumbled upon information about Professional Employer Organizations (PEOs). The more I read, the more it felt like this could be the answer we needed.
A PEO would take on the majority of employment-related risks and administrative work as a co-employer of our staff. The prospect of transferring so much potential liability off my plate was immediately appealing. No more waking up in a cold sweat worried about an incoming wage/hour lawsuit or immigration audit.
By partnering with a PEO’s team of compliance experts, we could create enforceable policies, management practices, and insurance coverages that follow the letter of the law across all jurisdictions. The PEO would serve as our knowledgeable safety net and risk management partner.
The benefits went far beyond just compliance, however. The more I looked into it, the more I realized a PEO could provide efficient, cost-effective staffing solutions to match our fluctuating hiring needs.
A Scalable Solution for Our Staffing Roller Coaster
One of the biggest staffing challenges we face is our industry’s cyclical nature. Some months our occupancy is extremely high, requiring a larger workforce to meet heightened care demands and staffing ratios. Then the next month, we see a drop-off in residents before ramping back up again.
This constant cycle of hiring and layoffs creates a roller coaster of inefficiency. We spend so much time and money constantly recruiting, onboarding, training, and then terminating supplemental staff when the care census goes back down. Not to mention the potential risks of somehow mishandling any part of those processes.
There’s got to be a better way to maintain appropriate staffing levels without the endless administrative headaches and costs. A PEO could be our scalable staffing solution by making it easy to temporarily ramp up or cut back our workforce as needed.
The PEO becomes the employer for any flexible, temporary staff we need to meet demands. They own all of the recruiting, hiring, onboarding, and rotating of those staff members. We only pay for the staffing resources we need at any given time.
When occupancy dips, we just stop scheduling those roles, and the PEO keeps them employed under their overarching workforce management system. We avoid the hassles and liabilities of hiring and firing. It’s seamless and efficient with zero compliance risks.
Offering Fortune 500-Level Benefits While Retaining Talent
Staffing and compliance issues aside, one of my biggest challenges has always been developing competitive employee benefit packages for recruiting and retention. Senior living has notoriously high turnover rates as caregivers seek better pay, benefits, and career opportunities elsewhere.
By myself, it’s extremely difficult to put together and manage comprehensive, affordable health insurance plans, 401(k) programs, life and disability coverages, and various voluntary benefits. I just don’t have the team, resources, tools, or negotiating leverage.
A PEO partnership would give us access to Fortune 500-caliber benefit plan offerings on par with major corporations and health systems we compete with for talent. By combining our workforce into the PEO’s overarching pool, we can take advantage of large group rates and customizable coverage levels.
Workers could select from multiple benefit plan designs at affordable premium costs, not the overpriced small group options available to us now. With a PEO, our employees would enjoy robust coverage along with modern enrollment technologies and comprehensive support resources for understanding their benefits.
For a change, we could promote our benefits as a true recruiting and retention advantage rather than a major drawback. This levels the playing field in our ongoing battle for quality caregivers and nursing staff that are pivotal to providing top-notch care.
Letting the Experts Handle Compliance and Risks
Ultimately, what I appreciate most about the potential of partnering with a PEO is the ability to transfer so much risk off my plate. They would serve as our compliance experts, payroll team, benefits administrators, safety specialists, and workforce management department all in one.
My team and I could finally get out of the daily grind of administrative tasks, staying on top of ever-changing regulations, processing paperwork and fending off risks from all directions. While we would still be involved at a strategic level, the back-end operations and executional duties would lie with the PEO’s specialized staff.
Instead of working tirelessly to build and manage all of those functions, processes, and insurance coverages ourselves, we could take advantage of an established, scalable infrastructure guided by an entire co-employer team of certified professionals. Why reinvent the wheel when I can plug in a turnkey HR solution?
My team and I can finally focus entirely on being strategic HR leaders for our organization, while a group of employment experts handles every other aspect of workforce administration, compliance, risks, claims, issues, and changes.
The PEO becomes our safety net and trusted resource for making sure nothing slips through the cracks while dramatically reducing our administrative workload and liability exposures.
Making the Leap and Prioritizing Care
After vetting numerous firms, I feel supremely confident handing over many employment responsibilities to our new PEO partner. The first few months of implementation were certainly an adjustment, but we already see the positive impacts in terms of scalability, risk mitigation, cost savings, and enhanced employee experiences.
For the first time in years, I can actually sleep at night rather than tossing and turning, worried about potential reporting mistakes or compliance fires. My team finally has the bandwidth to be proactive rather than constantly reactive.
Our community can now redirect resources away from back-office operations and toward driving higher-quality care and living experiences for residents. We have a trusted co-employer handling nearly every employment liability so we can prioritize what truly matters most.
For any other senior living HR professionals or executives feeling overwhelmed and outmatched, I can’t stress enough what a game-changer a PEO partnership can be. It provides scalable staffing, robust benefits, risk management, compliance assurance, technology enhancements, cost savings, and so much more. Make the call and start exploring PEO options today — your future sanity may depend on it.
Read on to learn more about integrating a PEO into your organization.
1. How does the cost of partnering with a PEO compare to handling HR responsibilities in-house? Are there any hidden fees or additional expenses?
As you’re evaluating PEO solutions, it’s crucial to understand the comparative costs involved. While the article highlights the potential for cost savings, it’s important to delve deeper into the specifics. Look for transparent information regarding fees, additional expenses, and any potential hidden costs associated with partnering with a PEO. Understanding the financial implications comprehensively will help you make an informed decision about whether this solution aligns with your organization’s budget and goals.
2. What specific criteria should HR professionals or executives consider when vetting PEO firms to ensure they align with an organization’s needs and values? Are there potential downsides or risks?
When selecting a PEO partner, it’s essential to consider various factors beyond what’s mentioned in the article. While it emphasizes the benefits of scalability, risk management, and compliance assurance, there may be additional criteria specific to your organization’s needs. Delve into aspects such as the reputation and track record of the PEO, their approach to customer service, the comprehensiveness of their services, and their cultural fit with your organization. Also, be aware of potential pitfalls such as inadequate support or compatibility issues that could arise from selecting the wrong PEO.
3. What are some potential challenges or limitations that organizations might face when transitioning to the PEO model? Can they ensure a smooth transition for employees and existing HR teams?
While the article paints a positive picture of the advantages of partnering with a PEO, it’s essential to acknowledge potential challenges and limitations. As you consider this transition, think about how it will impact your organization’s processes, workflows, and employee experience. Effective change management is crucial to navigate any potential hurdles smoothly. Ensure clear communication with employees about the transition, provide necessary training and support, and address any concerns or resistance proactively. By anticipating and addressing challenges upfront, you can maximize the benefits of a PEO partnership while minimizing disruptions to your organization.
