Using a PEO to Help with Onboarding: from New Hires to Satisfied Employees

Finding and hiring just the right new employee can soak up a lot of time and energy, especially for a small or medium-sized business. Unfortunately, too many organizations experience a let down after landing a great hire and before a key transition phase — onboarding.

Onboarding is the process of bringing a new hire into the business and giving them what they need to become a productive employee. The key word there is "process." Onboarding involves paperwork and many details, like setting up emails and passwords and electing benefits, but also making a good first impression on the new employee and introducing them to your culture. A well-structured onboarding process sets the tone for a new employee’s long-term engagement and employee experience.

Not every business has the resources to set up and carry out the process well. In one survey, more than half (54%) of office-based employees reported dissatisfaction with their onboarding experience. Why?

• 31% cited a lack of structure.
• 20% said there was confusion about daily tasks.
• 14% said they felt isolated during onboarding.

By addressing these setbacks and more, employee onboarding with a professional employer organization (PEO) can play a key role in enhancing the onboarding experience. A PEO's organized, consistent process and HR technology can help save time and reduce employee turnover. In this guide, we'll look at some of the challenges posed by traditional onboarding processes and how PEOs can be a game-changer for businesses looking to maximize their efficiency and upgrade their onboarding process.

Inefficiency: The Bane of Traditional Employee Onboarding

One common challenge with onboarding is the volume of new hire paperwork, which can be time-consuming and vulnerable to compliance errors. If paperwork gets backed up or mishandled, both employee and employer could see delays in benefits enrollment and other critical processes.

New hires often spend valuable time filling out forms and navigating administrative tasks instead of getting acclimated to their roles or starting their training. This not only takes up time but can also disrupt the momentum needed to make a strong first impression and set the stage for long-term success. Without the proper training and support from the start, employees may feel unprepared for their responsibilities, which can lower their confidence and performance.

How a PEO helps solve these issues

One of the key ways PEOs make onboarding easier is through self-onboarding platforms that allow new client employees to complete much of the necessary paperwork and administrative tasks from their computer or mobile device. A user-friendly, intuitive interface can guide employees through the process, allowing them to fill out forms, review benefit options, and access company policies — all at their own pace and on their preferred device.

While every PEO is different, here are some perks you might expect from an onboarding app:

• Pre-populated letter template to help save time.
• Comprehensive background check vendor. A PEO system may be integrated with a background check vendor to help streamline and save time with background check requests.
• Self-onboarding with options to elect benefits and a preferred pay method, such as direct deposit or paper check.
• Digital tax documents ready to be populated.
• Digital signatures. A PEO can provide a digital onboarding platform, for optimized cost efficiency.

In addition to these essential features, a PEO might provide other resources to help your new employees get off to a fast start.

• An interactive onboarding checklist. Employees and managers can track progress and make sure the process is completed promptly.
• Best practices guidance on creating a welcome video and company culture introduction. Even before new hires step through the door, they can start to feel welcomed.
• Gamified learning and training modules.
• Real-time support and chatbots.

Benefits of PEO-Assisted Onboarding

Using onboarding services available from PEOs, businesses could enjoy several benefits, including:

Risk mitigation

A PEO helps businesses navigate the complexities of employment-related and payroll tax rules and requirements by offering expert best practice guidance and helping businesses so they can comply with federal, state and local requirements. PEOs assist in calculating, withholding and remitting payroll taxes, including federal, state and local taxes, for wages paid through the PEO’s platform.

By staying up-to-date with changing requirements, a PEO mitigates certain HR risks, providing businesses with the resources they need to navigate compliance. While PEOs do not provide legal advice, they can help clients address HR-related concerns by offering timely best practices and support for other concerns, like payroll setup and employment tax matters.

PEO onboarding allows new hires to input information for payroll tax and benefit purposes even before their first day, available for exempt employees*. The process also can build in compliance training for new hires

Efficiency

A PEO can simplify critical HR functions, allowing businesses to focus on their core operations. A PEO may also offer comprehensive HR services, including payroll administration, benefits administration and compliance support, all through a centralized platform. By assisting with time-consuming administrative tasks, a PEO helps organizations reduce the burden on internal teams, allowing them to allocate resources more effectively.

Better employee experience

According to a 2024 survey, more than two-thirds of employees said that health care benefits are second only to salary when considering a job offer. Further, more than 9 out of 10 employees at small and large companies connect their overall job satisfaction to their benefits. It goes to show that offering competitive employee benefits is more than just a matter of attracting employees — benefits administration is equally as important when it comes to retaining them. A PEO can give clients access to big-company benefits. The onboarding process enables new hires to sign up for those PEO-sponsored benefits quickly and conveniently.

Steps in the Onboarding Process

Let's go over some typical steps you'll take in the onboarding process, and where a PEO can help:

1. Pre-onboarding preparation

Before the first day, certain information may be collected, including that related to identification, payroll tax forms, and direct deposit information. This establishes timely and accurate compensation from day one. Additionally, if part of the employer’s usual practice, pre-employment screenings, such as background checks or drug tests, should be completed promptly to avoid delays. Setting up employee access to internal systems (email, HR platforms, etc.) also falls under this preparation phase to streamline the first day.

Digital platforms provided by PEOs can significantly streamline these critical aspects of documentation. They should be the first system you introduce to an employee. PEOs typically allow for the digital submission of key documents (e.g., W-4 forms, benefits enrollment) and offer automated workflows for tracking completion. PEO services help meet standards with easy record-keeping, while providing a self-service portal for new hires to manage their personal information and benefits.

2. First-day essentials

The first day should focus on integration and preparation. Beyond orientation sessions, employees should be provided with necessary digital onboarding tools and resources, such as:

• Work equipment
• Login credentials
• Security protocols
• Access to internal communication systems

Managers introduce the new hires through team integration and explain the company's day-to-day and corporate culture. An established, clear agenda for the first day can help prevent confusion and set expectations. A nice welcome package can help with morale, too.

3. First week

During the first week, the focus should shift to training, familiarization and setting the stage for long-term success. This includes job-specific training, harassment prevention training, reviews of company workplace policies and familiarizing new hires with performance management systems. Regular check-ins by HR or direct managers can provide opportunities for clarification. It’s also a good time to introduce new employees to the broader organizational structure and cross-departmental teams.

4. Follow-up

This typically happens within the first 30 days, or after any potential probation period, and involves gathering feedback from the new hire on their onboarding experience. HR personnel or managers can conduct one-on-one meetings to see that any roadblocks, whether related to technology, processes, or interpersonal dynamics, are addressed promptly. This employee feedback mechanism can help fine-tune future onboarding efforts and make sure that new hires get what they need

5. Engagement and organizational development

Onboarding doesn't end after the first week or month. Successful organizations continue to support new employees through ongoing engagement, mentorship, and development programs. Regular reviews of performance expectations, career development, and opportunities for leadership development should be built into the process. This long-term investment in employee growth not only improves retention but also builds a culture of continuous learning.

By outsourcing specific HR functions to a PEO, small and medium-sized businesses can leverage technology and automation throughout the entire process. This helps create a more streamlined, efficient, and compliant experience for both employees and HR teams.

Employee Communication During Onboarding

The survey we talked about at the beginning of this article showed that a concerning number of employees start out feeling isolated, confused, misled and uncertain. Clear and consistent communication helps employees feel informed, supported and confident as they begin their roles. From day one, open lines of communication and established expectations about job performance and company culture help employees understand their responsibilities and stay on track.

A PEO plays a crucial role in this process by providing interactive support, delivering important information like company policies, handbooks and benefit options through user-friendly platforms, and offering ongoing resources such as FAQs and chat support.

Measuring Success in the Onboarding Process

With the support of a PEO, businesses can track key HR analytics that help evaluate the process. Insights like these help refine the onboarding process so that it meets both business objectives and employee needs. Data can help with workforce planning, too:

• Time-to-productivity. One of the most important metrics is how long it takes for new employees to reach full productivity. A streamlined onboarding process should minimize ramp-up time by providing the right tools, training and resources from day one. By tracking this performance metric, businesses can assess how quickly employees are able to contribute to their role and identify any obstacles in the onboarding process.
• Employee retention rates. Retention is a critical indicator of onboarding success. IEmployees leaving the company shortly after joining may signal that their onboarding experience was insufficient or unclear. A PEO helps businesses track retention rates among new hires, allowing them to correlate the onboarding experience with long-term employee engagement. High retention rates typically suggest that the onboarding process has helped employees feel welcomed, informed and supported in their new roles.
• Feedback on the onboarding experience. Feedback from new employees about their onboarding experience is another valuable metric. Surveys or one-on-one interviews can provide insights into how employees feel about the process, what worked well and what could be improved. By gathering honest feedback, businesses can make data-driven adjustments to their onboarding strategies.

By tracking these metrics, businesses can gauge how well their PEO-driven onboarding process is achieving its goals and make adjustments to maximize the overall experience for future new hires.

Case Studies: Onboarding With TriNet as a PEO

90210 Surgery Medical Center. This healthcare provider based in Beverly Hills was feeling growing pains and could no longer manage HR internally. It needed a more efficient way to bring a growing number of new employees onboard and to navigate California’s complex regulations and requirements. 90210 Surgery Medical Center found its solution in TriNet's easy-to-use platform, HR expertise and access to benefits. Outsourcing to TriNet made it possible to manage a staff with a wide range of needs across several locations while staying ahead of HR requirements.

"California, as you may be aware, is a pretty tricky state. It's got a lot of regulations, a lot of good protections for employees, and it's important that we stay on the correct side of those regulations," says Andy Ball, Chief Executive Officer. "One of the things that really impressed us with TriNet was the way they bundled the offerings together. ... Having that offering in one spot that could accommodate such a diverse population as we had in our staff was just really important to us."

With so much to think about from a healthcare standpoint, Ball says it’s great to have no concerns about HR compliance “because TriNet has that covered."

Zap Surgical Systems. One pain point that businesses often express is their difficulty with onboarding across state lines. States have different rules and requirements, which makes compliance tougher.

As this precision radiosurgery center expanded across 19 states and installed systems worldwide, it became difficult to recruit talented employees when competing against well-known brands. Bob Starr, Vice President, Human Resources, explains: “As a startup in the medical device field, we often find ourselves recruiting against much larger companies. Working with TriNet enables us to offer benefits with pricing that is as good as or better than what most large companies offer, which goes a long way.”

Paperless onboarding simplifies the task of getting these new hires off to a great start, and TriNet's expertise allows the company to feel better about employment-related rules and requirements.

In addition, TriNet’s Immigration Services — supporting a variety of U.S. immigration and visa needs — helps Zap Surgical hire the best talent in the U.S. regardless of citizenship.

Obstacles for Small Businesses

Even when companies recognize the importance of onboarding, a wide range of challenges might stop them from creating a solid process, including:

• Other priorities
• Lack of time
• No supporting managers to conduct onboarding
• A lack of process or onboarding framework
• Pressures to get a new hire working quickly

Here are 6 of the most common onboarding problems that can hurt a company's new hire integration, employee engagement and, ultimately, financial performance.

1. Lack of a formal onboarding process

Your company may have a casual and unstructured culture, but you still need a formal onboarding process. A poor onboarding plan can make you look disorganized and lead employees to think you don’t care about them.

2. The onboarding process is too short

You want new hires to become productive as soon as possible, but trying to cram onboarding talks too quickly is counterproductive. Employees may feel overwhelmed and have difficulty absorbing important information.

3. Not taking the employee experience into account

Center onboarding around the employee’s perspective. A successful employee onboarding process should consider:

• Why they were hired in the first place
• Who they need to know to be successful.
• How they can effectively integrate into the current workflow.
• Job training and mentorship opportunities.
• What new employees will need to be successful in 3 months, 6 months, and a year.

The sooner an employee feels comfortable in their new workplace, the faster they can adapt.

4. Not updating or measuring the onboarding process

Have you reviewed your onboarding process to make sure it’s still current? A strong onboarding program will track onboarding metrics and key performance indicators like:

• New hire satisfaction
• New hire retention
• Training completion rates
• Employee engagement over time
• Time to productivity

5. Too many manual onboarding workflows

While human interaction is vital for parts of the onboarding process, automation helps create a smoother transition for the employee. This is especially important for companies with remote workers or multiple locations.

6. Failing to focus on the company culture

A formal onboarding process doesn't leave the human element of onboarding to chance. Scheduling meet-and-greets and team-building exercises can help new hires establish positive and lasting relationships with colleagues and managers.

All Aboard: Let TriNet Simplify HR

Outsourcing specific HR needs to TriNet PEO can help transform your onboarding process and bring it into the digital age.

Entirely online, mobile-friendly and all in one place, our software offers self-onboarding for employees and visibility into the onboarding process for admins.

TriNet provides expert support for the onboarding process so businesses like yours can focus on what matters most: their employees. If you're ready for your employees to experience a smooth onboarding process, book a demo with one of our experts to find out more. And for more insights on how to optimize your onboarding process, sign up for the HR Checklist for Remote Hiring and Onboarding, which offers valuable resources and best practices on the onboarding process.