Increasing Productivity and Decreasing Liabilities: Why Professional Employer Organizations (PEO) Work for Hoteliers
By Mike Burgelin Owner and President, Employer Leasing Quotes | August 21, 2016
Still crawling out of the recession, businesses continue to employ a conservative approach with every decision affecting the bottom-line. This offers an even bigger challenge in the hotel industry, where guests expect top-notch properties at an outstanding rate.
With the internet providing a seemingly endless array of travel review websites ready to critique each aspect of your property to offer affordable alternatives, how does a hotel stay profitable while keeping guests happy (and writing positive reviews)?
One way hoteliers are overcoming this test is to use the services of an employee leasing company, also known as a Professional Employer Organization (PEO). These programs evolved around 40 years ago to enable business owners to outsource their employment-related administrative work (the tasks that don't generate any income) so the owner can focus his/her attention and efforts on the details that do drive revenue.
In short, the PEO processes payroll, deposits taxes, reports timely tax filings and provides workers' compensation insurance deducted through payroll, which eliminates audits. Some PEOs also offer human resource assistance and employee benefits such as group healthcare, 401(k) savings plans and life insurance options.
PEO services are currently operating in every state, are fully recognized by the IRS, and have over 30 million employees under a PEO arrangement. And yet this beneficial concept is still fairly unfamiliar and misunderstood by many who are in the hotel industry. Understanding the perks of these services may be the key to your hotel's success in the future.
PEOs Increase Your Productivity