How PEOs Can Help Manufacturers Manage HR-Related Compliance

Federal regulations cost manufacturers with 50 or fewer employees an average of $50,100 per employee, according to a study by the National Association of Manufacturers. Small manufacturers estimate in the study that labor-related regulations carry the highest costs.

If you’re currently running a small manufacturing business, you’re likely aware of the impact of these regulatory costs – such as curtailing your ability to create new jobs or offer competitive wages to attract talent. Is it possible to better manage labor-related compliance?

The good news is, it is possible. A professional employer organization (PEO) provides small and mid-sized companies – manufacturers included – a cost-effective solution to manage your human resources needs, reduce costs, and stay on top of labor laws and regulations.

Here are 3 ways a PEO can help small manufacturers:

1. Reduce costs: For about the cost of hiring one, full-time employee, you can engage a PEO that will handle your administrative HR tasks, administer benefits, assist with workplace safety and OSHA compliance, and help establish best-practice policies. In addition, you’ll gain access to HR technology that streamlines processes and a team of HR experts who can guide you on labor-related compliance, offer insight on tricky personnel issues, and assist with strategic HR efforts such as improving employee engagement and retention.

2. Secure better benefits: Finding medical plans that fit your budget feels nearly impossible on the open market. PEOs negotiate on behalf of their entire client base, which means they can obtain high-quality affordable plans that rival those from Fortune 500 companies. At G&A Partners, for example, we can typically save businesses 10-20% on Wellmark plans versus open market options. You can also gain access to ancillary benefits, allowing you to offer a more comprehensive benefits package to meet the needs of all employees.

3. Access to compliance experts. Tracking ever-changing workplace laws and regulations is a full-time job. But the consequences – potential penalties, fines, and lawsuits – can be costly. Noncompliance can also erode trust with your employees, negatively impacting company culture. With a PEO, you’ll have compliance experts on hand who’ll inform you of the latest labor laws and, more importantly, how they impact your business. ABI