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Technology Solutions

<p>“Can you hear me? Is there an echo? Can you see me?” </p>
<p>Video and conference call issues prompting these questions are not just frustrating – they can cost you time and drain the productivity from your meetings. Here are six of the most common video and conference call issues and the solutions you can use to avoid or fix them, ensuring your business’s virtual meetings are as productive as possible. </p>
<h2 id="1-video-lagging-and-audio-cutting-out">1. Video lagging and audio cutting out</h2>
<p>Video lag, glitchy audio and poor image resolution are all the result of a bad Wi-Fi connection. If you don’t have a strong internet connection, you might be forced to exit the conference call entirely.</p>
<p><strong>Solution: </strong>When you have a video or <a href="https://www.business.com/categories/best-conference-call-services/">conference call</a> scheduled, it’s best not to use a public network, because multiple devices are likely to be operating on the same Wi-Fi connection and reducing the <a href="https://broadbandnow.com/bandwidth-calculator" target="_blank" rel="noopener">available bandwidth</a>. If possible, you should connect via private network, whether that’s at the office or home. If your connection is still spotty, position your workstation closer to your router for a better connection. (As you move farther away from the router, you’ll notice the signal between it and your computer worsens.) </p>
<h2 id="2-echoes">2. Echoes</h2>
<p>A conference call echo is typically caused when multiple participants have speaker mode on. As a result, it sounds like the speaker is saying everything twice. </p>
<p><strong>Solution:</strong> To avoid an echo, instruct all participants to mute their microphones when they aren’t talking. If you are expected to be the only one speaking, such as during a presentation, you have the option to mute all other participants. Also, when possible, each participant should use a high-quality headset and microphone for HD voice and audio output. </p>
<h2 id="3-background-noise">3. Background noise</h2>
<p>When you work remotely from home or in a public space, there’s bound to be noise around you. From a neighbor firing up their lawn mower to a barista grinding coffee beans, these noises can distract everyone on the call from what you’re saying. </p>
<p><strong>Solution:</strong> You and all your attendees should try to keep background noise to a minimum by finding a quiet room, turning off your mobile devices and, if necessary when working from home, asking family and neighbors to keep the noise down during your meeting. </p>

<p><strong>Looking for the right conference call service for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.</strong></p>


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<h2 id="4-everyone-speaking-at-once">4. Everyone speaking at once</h2>
<p>When several participants want to respond to a question or are engaging in a lively conversation, it gets difficult to hear what everyone has to say. While this may be a sign of a fully engaged team or staff camaraderie, it makes for a chaotic business meeting. </p>
<p><strong>Solution:</strong> Choose a moderator and, if available, use the software’s tools to limit who can speak and when. In Zoom, for example, you can set up the call so that all participants are muted by default and only the moderator can unmute them. Participants can click the Raise Hand button if they would like to speak. This helps keep online meetings orderly and make sure each voice is heard. </p>
<h2 id="5-participants-unable-to-connect-to-the-call">5. Participants unable to connect to the call</h2>
<p>It’s very common for conference call attendees to have trouble connecting. This can be the result of a poor internet connection, the wrong dial-in number or access code, or a software issue, such as a required update. </p>
<p><strong>Solution:</strong> When sending meeting invitations, moderators should include a link to a troubleshooting guide that participants can use to fix problems on their own before alerting others. Also, participants should dial in a few minutes early to ensure they have a solid connection and there aren’t any issues before the meeting starts.</p>
<h2 id="6-absent-team-members">6. Absent team members</h2>
<p>While most <a href="/articles/video-conferencing-etiquette-tips/">video conferences</a> and phone calls are scheduled ahead of time, a team member may have an urgent matter pop up at the last minute that prevents them attending. As a result, they miss the discussion or information shared in the meeting. </p>
<p><strong>Solution:</strong> Most conferencing software applications allow the meeting organizer to record the meeting and then send the audio or video file to anyone who missed the call, keeping all team members up to date with discussions. <strong>[Read related article: </strong><a href="/articles/video-conferencing-tips/"><strong>10 Tips for Conducting an Effective Video Conference Call</strong></a><strong>]</strong> </p>
<h2 id="what-do-you-do-when-your-conference-call-is-not-working">What do you do when your conference call is not working?</h2>
<p>If you are experiencing a lot of technical issues with your conference calls, try to figure out what the problem is by using basic troubleshooting techniques, such as restarting your computer, closing and rebooting your software, and seeing if all video and audio inputs are properly connected. </p>
<p>Rima Shah, analyst for <a href="https://technostacks.com/" target="_blank" rel="noopener">Technostacks Infotech Pvt. Ltd</a>., says that in order to identify the issues with your system, you must be able to see what’s going on behind the screen. </p>
<p>“One must have immediate access to quality of service (QoS) statistics for jitter, latency, packet loss and frame rate,” Shah told business.com. “If a conference call has a problem, you must be able to drill down into it and view these stats and then be able to drill into each stat and see what’s causing the degradation.” </p>
<p>Shah suggests doing two key things when your conference calls are not working: </p>
<ol>
<li><strong>Check for software and hardware updates.</strong> These updates ensure that your product is operating smoothly and securely and is free of bugs. Sometimes, if you’ve neglected to update the hardware or software to the most recent version, problems can arise and the product won’t function properly. Check your products against manufacturer resources to ensure that they are up to date. Keep your computer, mobile phone and web browsers updated too. </li>
</ol>
<ol start="2">
<li><strong>Look for disconnected cables.</strong> Check your connections to make sure all your cables are connected securely, as a loose cable can cause problems with your system. Ask your IT team to set up alerts for when cables are disconnected, and put up signs to remind users to first check all the cables if they’re having a problem. If your system is complex, it’s also helpful to give all employees a labeled diagram of the cables.</li>
</ol>
<h2 id="what-if-conference-calling-problems-persist">What if conference calling problems persist?</h2>
<p>If your business relies on video or conference calls to communicate with team members or clients, it’s critical to quickly pinpoint the potential issues. You should discuss these issues with your IT staff to troubleshoot and resolve your problems more quickly. </p>
<p>If your business does not have IT staff, you should contact your conferencing service’s customer support to resolve the issue. If your current software continues to cause problems, consider finding another conferencing service provider. </p>
<p>“The first step is to try and identify a specific problem,” said Adam Sanders, director of <a href="https://successfulrelease.com/" target="_blank" rel="noopener">Successful Release</a>. “If you’re unable to do so and multiple people are having the same issue, there is likely a software problem that requires technical support.” </p>

Looking to resolve your conference call issues? Here are pointers to help you solve the six most common video and conference call problems.

Common Conference Call Issues and Their Solutions

Human Resources

Employees

<ul>
<li>You can calculate your employee turnover rate by looking at the average number of workers who exit your business during a specific time period and are replaced by new staff.</li>
<li>Your business should monitor and track its employee turnover to gauge how appealing your company is to employees. It can also help you improve areas that may be causing workers to leave your company.</li>
<li>Your employee turnover rate helps you evaluate your risk of an employee leaving and recognize opportunities for retention when you hire new employees.</li>
</ul>
<p>Some level of employee turnover is natural for all businesses. While employees used to stay with one company for the majority of their careers, job-hopping has become much more common for today’s workers.</p>
<p>If several employees have recently left your business, however, you may be wondering if that’s normal or, if it’s not, whether there’s a problem that you need to identify and address. To get a clear picture, you first need to determine your employee turnover rate and see how that number compares with businesses nationwide.</p>
<p>Once you’re armed with the data, you can then come to conclusions about whether your employee turnover is a problem. If it is, you can take steps to figure out why employees are leaving and what you can do to make your organization a place where employees want to stay.</p>
<h2 id="what-is-employee-turnover">What is employee turnover?</h2>
<p>Employee turnover is the loss of talent in the workforce over time. This can take many forms of employee separation, including layoffs, location transfers, resignations, retirements, terminations and even deaths.</p>
<p>Employee turnover should not be mistaken for employee attrition. Attrition is the loss of employees through a natural process, such as resignation, retirement or personal health. However, unlike with traditional turnover, these jobs will remain unfilled when the employee leaves.</p>
<p>Employee turnover is the voluntary or involuntary loss of an employee who leaves an open position that your business will need to fill. Turnover can be due to the same reasons as attrition, but it’s generally viewed negatively and as a burden for employers.</p>
<p>There are two standard types of employee turnover:</p>
<ol>
<li><strong>Voluntary:</strong> This refers to employees who willingly leave their jobs.</li>
<li><strong>Involuntary:</strong> This refers to employees who have been laid off or fired or whose employer has terminated their contract.</li>
</ol>
<h2 id="how-do-you-calculate-your-employee-turnover-rate">How do you calculate your employee turnover rate?</h2>
<p>To figure out if you have an employee turnover problem, you first need to determine your turnover rate. When calculating your turnover rate, you look at a set period of time – usually one year. Sue Andrews, HR professional and fellow of the Chartered Institute of Personnel and Development, says that to calculate turnover, you’ll need three separate figures:</p>
<ol>
<li>The number of employees who left in the time period (including both voluntary and involuntary leave)</li>
<li>The number of employees at the beginning of the period</li>
<li>The number of employees at the end of the period</li>
</ol>
<p>To calculate the average number of employees, you take the number of the employed at the beginning of the period and add it to the number of the employed at the end of the period. Dividing this figure by 2 will give you the average employee count.</p>
<p>You can then calculate your turnover with this simple formula:</p>
<p><strong><i>Turnover = (Employees who left ÷ Average number of employees) x 100</i> </strong></p>
<h2 id="why-should-a-company-track-its-employee-turnover">Why should a company track its employee turnover?</h2>
<p>Your business should monitor and track its employee turnover to gauge how attractive your company is to employees and to help you improve areas that may be causing employees to leave your company.</p>
<p>A <a href="/articles/employee-turnover-rate/">high turnover rate</a> can have a negative impact on your bottom line if you aren’t prepared for it, according to Ellen Mullarkey, vice president of business development for Messina Group.</p>
<p>“If you know that you have to hire several times a year, you should set aside enough time and money to do so,” Mullarkey said. “It’s not cheap, so you have to plan. Tracking your turnover rate can also let you know if your company is a good company to work for.”</p>
<p>Marc Prosser, CEO and co-founder of Choosing Therapy, believes there is both good and bad employee turnover. He said these are the differences:</p>
<ul>
<li><strong>Good employee turnover: </strong>With good employee turnover, you can include employees who leave the company for a major promotion and employees who were on performance improvement plans. You want to be a company where people can learn and advance their careers. Your reputation as a business where workers can learn new skills and become more attractive to future employers will help your recruiting efforts.</li>
<li><strong>Bad employee turnover: </strong>Bad turnover is when moderate- or high-performing employees are leaving for lateral positions. This means you have a bad work environment or are paying under market value. If your bad turnover rate is more than 15% per year, you should take a close look at your compensation and company culture.</li>
</ul>
<h2 id="whats-an-example-of-calculating-employee-turnover-rate">What’s an example of calculating employee turnover rate?</h2>
<p>To calculate employee turnover rate, you should review which employees were not working for the month and the reason for their absence. As an example, although you should consider any employees out on maternity leave or disability, they should not be used in your formula for an employee turnover rate.</p>
<p>For example, in July, say you had two employees retire and two employees quit. Your business has a total staff of 180 employees. Therefore, <strong>your employee turnover rate for July is 2.2%</strong>. Use the same formula to calculate annual turnover rates.</p>
<h2 id="is-there-a-tool-to-help-you-track-this-rate">Is there a tool to help you track this rate?</h2>
<p>While some businesses choose to manually track their employee turnover rate, others opt for <a href="https://www.business.com/categories/best-hr-outsourcing-services/">human resources outsourcing services</a> or human resources software.</p>
<p>HR software can help your business track its staff turnover, according to Bob Teasdale, sales and marketing director at Myhrtoolkit.</p>
<p>“For example, our system generates an exportable <a href="https://www.business.com/hr-software/reporting/">staff turnover report</a> that automatically calculates staff headcount at the end of each month and provides a turnover percentage,” Teasdale said.</p>
<p>Most HR software helps you track all employee information, including hire dates, leave requests, training, payroll and benefits administration.</p>
<p>When making hiring decisions during the turnover process, you may want to consider an applicant tracking system that allows you to electronically track and manage all applicants throughout the employee recruitment process.</p>
<h2 id="how-do-you-analyze-your-turnover-rate">How do you analyze your turnover rate?</h2>
<p>Regardless of the tool you use, it’s crucial for your business to make the purpose of its turnover analysis abundantly clear. Generally, employee turnover is an indication of your overall employee satisfaction: Low employee turnover is a result of high employee satisfaction.</p>
<p>Your goal should be to make sure employee morale and satisfaction are constantly growing within your workplace. Therefore, it’s best to use a benchmark turnover rate to see if your rate improves yearly. You can also compare your turnover rate against national and industry averages.</p>
<p>While the normal rate of employee turnover varies by industry, an effective retention plan can help you retain talent and reduce turnover costs, no matter what industry you’re in.</p>
<h2 id="what-does-your-turnover-rate-tell-you">What does your turnover rate tell you?</h2>
<p>Your employee turnover rate tells you your <a href="https://www.business.com/articles/reasons-employees-quit/">risk of an employee leaving</a> and your opportunities for retention when new employees come on board. This data also helps you see if your compensation is on par with the market, what your employees’ work environment is like and how they view future opportunities in your business, according to Josh Dane, owner of Dane Salon Group.</p>
<p>“We analyze employee turnover based on our estimates of our competitor turnover levels, as well as tracking period to period,” Dane said. “If turnover is increasing, we need to figure out what is causing this.”</p>
<p>It’s no secret that high turnover is expensive for any business. Reducing employee turnover costs begins with determining your direct and indirect costs.</p>
<p>Belinda Wee, associate professor at the Husson University School of Business and Management, said direct costs include the replacement of employees who left, such as the costs of background checks and training, while indirect costs are not as easy to quantify. One example of an indirect cost is the cost of finalizing paperwork when an employee leaves, which can include benefit paperwork and unemployment documentation.</p>
<p>“Losing an entry-level employee costs a business about 50% of that employee’s annual salary,” Wee said. “Losing a technical or senior-level employee costs a business about 125% of the employee’s annual salary to the business.”</p>
<p>Improving your retention rate begins with refining your employee onboarding process, evaluating the employee experience at your company and finding opportunities to enhance your company culture. These preventive measures can produce the yearly employee turnover rate your business wants and reduce the associated costs.</p>
<h2 id="what-is-the-average-employee-turnover-rate">What is the average employee turnover rate?</h2>
<p>The <a href="https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents/2017-Human-Capital-Benchmarking.pdf" target="_blank" rel="noopener">SHRM Human Capital Benchmarking Report</a> found that the average employee turnover rate in 2017 was 18%, and that less than 50% of organizations had a succession plan in place. Organizations should aim for 10% for an employee turnover rate, but most fall into the range of 12% to 20%. Certain industries report higher employee turnover rates due to the nature of the job. Retail, staffing agencies, hospitality and fast food have the highest employee turnover rates, according to the Small Business Chronicle.</p>
<h2 id="what-are-the-top-reasons-for-employee-turnover">What are the top reasons for employee turnover?</h2>
<p>You should evaluate your company culture if your employee turnover rate is higher than normal. High turnover figures are a red flag that will prevent you from securing the best talent in the field.</p>
<h3>Lack of career opportunities and advancement</h3>
<p>High turnover could indicate that employees are not finding enough opportunities for advancement in your company. If employees feel stuck in a dead-end job, they will look for a better position. Employees also prefer companies with career training programs that allow them to add new skills and build their resumes. Training opportunities can also increase their confidence in handling their current job duties.</p>
<h3>Poor management</h3>
<p>Another reason for high employee turnover is poor management. If managers are difficult or tend to micromanage the employees, workers may look elsewhere for a position. Also, if a leader’s management style is to be critical instead of encouraging, this may create a hostile work environment that makes employees want to move on.</p>
<h3>Feelings of being overworked</h3>
<p>The work environment and how your company values employee time also contribute to turnover rates. For instance, if employees feel overworked or are frequently asked to commit to long shifts, they may start looking for other positions.</p>
<h2 id="what-are-some-tips-on-how-to-improve-your-employee-turnover-rate">What are some tips on how to improve your employee turnover rate?</h2>
<h3>Open communication and recognition</h3>
<p>Constructive feedback and recognition for a job well done reduces turnover. Good communication between employees and employers makes a big difference in overall job satisfaction. The employee wants recognition for doing well on the job. Incentives could also act as an aid to reduce employee turnover rate. Employee of the Month, sales awards and bonus checks are just a few examples of incentivizing a job at your organization.</p>
<h3>Training and career development</h3>
<p>Look for training opportunities for your employees. Although onboarding may already involve some training, consistently offer programs that expand their knowledge and skill sets. Tech training is especially important in today’s climate, since hard skills are the most desirable on resumes.</p>
<h3>Flexible schedules</h3>
<p>Flexible schedules tend to help employers reduce their employee turnover. Many employers find that paying for work produced instead of hours worked increases overall employee satisfaction. Another way to offer flexible schedules is to consider allowing employees to work remotely if job duties allow for it.</p>


Want to track your employee retention? Learn how to calculate your company's staff turnover rate.

Employee Retention: What Does Your Turnover Rate Tell You?

HR Solutions

Learn about the HR services you can outsource to a PEO.

What Services Can a PEO Provide for Your Small Business?

Find the right PEO software to optimize your small business HR functions.

PEO Software: How to Choose the Best One for Your Business

<p>Managing a human resources department and all of the tasks that go with it, like employee onboarding, payroll processing and benefits administration, can be difficult for many small and midsize businesses. Being skilled in all of these areas requires in-depth knowledge and support that may be difficult to come by. To help with this, many businesses partner with a <a href="https://www.business.com/articles/what-is-a-peo/">professional employer organization (PEO)</a>.  PEOs can take on many HR responsibilities and relieve some of the stress, making it easier to keep your business operating smoothly. However, while there are a lot of benefits to partnering with a PEO company, there can also be some downsides.</p>
<p>Before turning over your HR department’s keys to an outside service, it is important to understand the pros and cons of using a PEO compared to offering the same services in-house. </p>
<p><strong><span data-sheets-value="{"1":2,"2":"Editor's note: Looking for the right [category name] for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs."}" data-sheets-userformat='{"2":513,"3":{"1":0},"12":0}'>Editor’s note: Looking for the right PEO for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.</span></strong></p>

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<h2 id="what-are-the-pros-of-using-a-peo">What are the pros of using a PEO?</h2>
<p>When choosing a solution to manage your HR processes, it’s essential to consider the pros of using a PEO and evaluate whether those benefits are the best fit for your business. Your PEO options will depend on your business’s size and goals. The <a href="https://www.business.com/categories/best-peo-services/">best PEO services</a> offer many employee HR-related services, such as payroll processing and payroll tax management, health insurance, <a href="https://www.business.com/insurance/workers-comp/">workers’ compensation insurance</a>, and retirement savings plans. </p>
<h3>1. A PEO can save you money.</h3>
<p>The annual return on investment associated with cost savings alone is one of the most common factors that small business owners assess when <a href="https://www.business.com/articles/peo-software/">deciding whether to use a PEO</a>, according to the National Association of Professional Employer Organizations. </p>
<p>NAPEO’s research found the estimate of the expected ROI for PEO clients, based on cost savings alone, is <a href="https://www.napeo.org/what-is-a-peo/about-the-peo-industry/napeo-white-papers" target="_blank" rel="noopener">27.3% per year</a>. This estimate is based on the cost savings of businesses that entered into co-employment agreements focused on five areas: </p>
<ul>
<li>HR personnel costs</li>
<li>Health benefits</li>
<li>Workers’ compensation</li>
<li>Unemployment insurance</li>
<li><a href="https://www.business.com/articles/peo-services/">Other PEO services</a>, like payroll and retirement plans </li>
</ul>
<p>An ROI of 27.3% means that for every $1,000 spent on PEO services, the average business owner would save roughly $1,273, resulting in a net benefit of $273 for every $1,000 spent.</p>
<h3>2. A PEO can protect you from legal risks.</h3>
<p>PEO benefits offer several risk protections. For one thing, the IRS charges small businesses billions of dollars every year in payroll fines. A good PEO service can protect your company against this issue. Reputable PEO services are insured for mistakes they might make in your accounting and payroll. If something is off, the PEO eats the cost rather than you. You should confirm that your chosen PEO offers this guarantee before you commit to using the service.</p>
<p>Similarly, PEOs reduce your risk with HR compliance. HR failures can lead to fines and even lawsuits. The average lawsuit for <a href="https://www.business.com/articles/fmla-for-small-business/">Family Medical Leave Act</a> (FMLA) violations is <a href="https://www.cose.org/Mind-Your-Business/HR/Employees-Can-be-Held-Personally-Liable-for-Family-and-Medical-Leave-Act-Violations" target="_blank" rel="noopener">around $80,000</a>. That’s just one common mistake. Even discounting penalties, HR issues can hurt employee retention and drive up turnover costs. When the work is properly outsourced, that insurance provides a layer of protection. Since you are not directly responsible for these problems when they arise, you are not on the line for their costs.</p>
<p>Indirectly, PEOs insulate your company against certain risks by saving you time. The resources you aren’t putting into PEO services are free to be reallocated. That can empower you to improve margins and/or cash flow, and both of those outcomes give you additional risk protection. The time your PEO saves is potentially more valuable than the direct spending you can cut for these services. This is why proper outsourcing is one of the best ways for a small or midsize business to improve its overall ROI.</p>
<h3>3. A PEO can manage your workers’ compensation program.</h3>
<p>The pro of using an employer organization is that it takes care of time-consuming tasks like vetting and purchasing workers’ comp policies, according to Bryan Bowles, founder and CEO of Transactly. </p>
<p>“Prior to utilizing a PEO, we had to manually sit through the annual audits, which consumed a significant amount of our accounting staff’s time,” Bowles told business.com. “In addition to the time savings, we’ve noticed a significant cost savings as compared to purchasing a policy directly.” </p>
<p>PEOs have experience with workers’ comp programs, so they have policies in place for situations you may not have yet encountered at your business. One example of this is return-to-work programs that help employees transition from medical leave back to work through modified, low-risk or light-duty jobs. </p>
<h3>4. A PEO can improve your employees’ experience.</h3>
<p>PEOs add value to your business by providing a great employee experience. Since a PEO handles much of the grunt work of human resources, it allows you to focus on your company’s culture and employee management. </p>
<p>Additionally, <a href="https://www.business.com/articles/companies-with-best-benefits/">PEOs may allow you to offer employee benefits</a> that typically wouldn’t be affordable for a small business, according to Samantha Reynolds, marketing manager for Helpside. These include “not only traditional benefits like health, dental and vision insurance, but also conveniences like online access to paycheck stubs, <a href="https://www.business.com/articles/direct-deposit-services-small-business/">direct deposit</a> and assistance with verifications of employment.” </p>
<p>Employees of businesses that use PEOs are more likely to experience:</p>
<ul>
<li>Higher levels of employee engagement</li>
<li>Improved trust in their employers</li>
<li>More confidence in the business’s approach to company growth</li>
<li>Higher employee retention rates</li>
</ul>
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<h3>5. A PEO can help attract and recruit top talent.</h3>
<p>Considering all of the ways that a PEO can improve the employee experience, it is clearly an opportunity to empower your recruiting efforts. The <a href="https://www.business.com/hr-software/employee-benefits/">employee benefits you offer</a>, which your PEO manages for you, make your business more attractive to new recruits. Whether it becomes a focal point of<a href="https://www.business.com/hr-software/recruiting/"> your recruiting efforts</a> is up to you, but every improved benefit is an upgrade to your investment in employee satisfaction, and potential hires notice these things when they compare companies.</p>
<p>Additionally, your outsourced HR can handle a chunk of the recruiting and hiring workload, making the process substantially more efficient. You’re likely to retain good employees by having a better working environment, and you have more resources to go after top talent that can make the whole business run better. It’s a major win-win.</p>
<h3>6. A PEO can bring peace of mind.</h3>
<p>Outsourcing, when done right, comes with a unique opportunity for business operators’ peace of mind. The risk management and efficient handling of administrative tasks let you rest assured that you are compliant with regulations and the busywork of your company is in good hands. You aren’t losing out to bloated HR or benefits management, you’re investing in employee satisfaction, and you’re doing right by your company with the right tools for these integral jobs.</p>
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<h2 id="what-are-the-cons-of-using-a-peo">What are the cons of using a PEO?</h2>
<p>It’s important to conduct extensive research before partnering with a PEO. Business owners need to understand that they will be entering into a co-employment agreement with the PEO, which means relinquishing some control over their businesses. Here are some PEO disadvantages to carefully consider before deciding to use one. </p>
<h3>1. You may experience delayed communication and conflict resolution.</h3>
<p>A PEO doesn’t only manage the HR of your company. They have many other clients. Since there’s no exclusivity, your business may not receive the personal, in-depth attention it needs. This separation can cause communication to be more delayed than if you had an internal employee managing your HR.</p>
<h3>2. A PEO owns your payroll data.</h3>
<p>Another potential con of a PEO is that it owns your loss run and payroll data, according to Jon Brodsky, CEO of YouNow and former CEO of Finder. </p>
<p>“Because the PEO would own the data, we would have had to start from scratch when we were ready to get insurance and benefits on our own, which would have likely meant higher rates for us,” Brodsky said. “So, we decided to take the short-term pain of administering our own healthcare and receiving slightly less-than-favorable rates on our insurance in order to have the best long-term potential cost savings for Finder.”</p>
<h3>3. You may be responsible if your PEO makes a mistake.</h3>
<p>PEOs are responsible for administering payroll and filing payroll tax returns, which can be one of the most significant benefits of partnering with one, according to Tammy Dain, co-founder and CEO of Rabble. </p>
<p>“Since employees are considered co-employees of both the PEO and your business, the IRS still considers you liable if there are any errors in those filings,” Dain said. “Thus, it’s incredibly important that you have verified the PEO’s practices with regards to taxes. It is completely within your right to audit the payroll tax returns that the PEO has filed on behalf of your employees.” </p>
<p>The IRS currently offers a <a href="https://www.irs.gov/tax-professionals/about-certified-professional-employer-organization" target="_blank" rel="noopener">voluntary certification program</a> for professional employer organizations, which ensures tax liabilities remain entirely with the PEO rather than your business. To reduce the risk of payroll mistakes, partner with a known leader in the payroll space.  </p>
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<h3>4. You lose control over internal processes.</h3>
<p>A PEO can control nearly every aspect of HR, saving you a lot of time and energy. However, it can also cost you some level of control. PEOs aren’t ideal for businesses that want complete control over their HR processes. One partial way around this is by partnering with a PEO solution that offers customization rather than preconfigured service bundles. This allows you to maintain control over certain processes and still receive assistance with others.</p>
<h2 id="what-does-a-peo-do">What does a PEO do?</h2>
<p>A professional employer organization is an outsourcing company that provides human resources for small and midsize businesses through co-employment agreements. These are some ways a PEO simplifies your business’s HR duties: </p>
<ul>
<li>It reduces the number of administrative and HR tasks your business must handle itself.</li>
<li>It helps you adhere to federal regulations, reducing your compliance risk.</li>
<li>It offers comprehensive benefits for all employees. </li>
</ul>
<p>By partnering with a PEO, small business owners gain more control over their companies because they have more time to lead and focus on driving employee performance, according to Brian Michaud, president of ADP’s smart compliance solutions and former senior vice president of ADP TotalSource. </p>
<p>“A PEO offers built-in protections and helps ensure holistic compliance, from payroll to HR (i.e., discrimination and harassment) to insurance,” said Michaud. “PEOs allow owners to focus on knowing and executing on their business, rather than needlessly worrying over potential fines and lawsuits that can come unexpectedly.” </p>
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<h2 id="what-are-some-in-house-hr-benefits">What are some in-house HR benefits?</h2>
<p>For some businesses, <a href="https://www.business.com/articles/hire-first-hr-person/">keeping human resources in-house</a> is the better choice. Managing your own HR department offers you more control over your workplace policies. An in-house HR team is completely dedicated to your business, and you can hand-select HR professionals who understand and act in the best interest of your business. In-house HR can improve the employee experience by providing the following: </p>
<ul>
<li>Face-to-face interactions</li>
<li>Fast execution of technical operations, like policy and compliance changes</li>
<li>In-person assistance with recruiting, interviewing and training new employees </li>
</ul>
<h2 id="what-are-some-in-house-hr-disadvantages">What are some in-house HR disadvantages?</h2>
<p><a href="https://www.business.com/articles/hr-department-pros-and-cons/">Human resources departments</a> are costly to run, and the additional salaries of an entire department can be a burden to small businesses. If your business has grown at a manageable rate and needs little HR management, hiring and maintaining an in-house HR team may be unnecessary. Here are three disadvantages of in-house HR: </p>
<ul>
<li><strong>It’s time-consuming.</strong> Maintaining HR duties in-house takes up time and manpower that many small businesses simply can’t afford.</li>
<li><strong>It may cost more than a PEO over the long term.</strong> While standard payroll services or human resources may seem affordable initially, you must account for long-term sustainability. Employing knowledgeable and experienced HR workers to ensure labor law compliance, administer benefits, and draft company policies and procedures can cost business owners more out of pocket than they would like.</li>
</ul>
<ul>
<li><strong>It’s not easy to find top talent</strong>. Finding quality employees may be difficult, especially for small businesses. Top employees usually seek numerous high-quality benefits, such as medical and dental insurance and a 401(k)-plan match, that small businesses can’t always offer. </li>
</ul>
<p>By partnering with a PEO, businesses receive access to a team of experienced HR professionals and a wide range of support that may otherwise be out of reach for small organizations. Alternatively, keeping HR services in-house can raise employee satisfaction by providing face-to-face interactions, which can strengthen the bond between the employee and employer. Consider the size and needs of your business when making the final decision between using a PEO and keeping HR work in-house.</p>
<p><i>Additional reporting by Skye Schooley. Some source interviews were conducted for a previous version of this article. </i></p>

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