Solution Providers

How PEOs can help your business:
More and more businesses are choosing to use a Professional Employee Organization, or PEO, to assist in administrative responsibilities and promote growth. PEOs act as human resource (HR) experts that are available to help clients overcome the challenges they experience in their business. Although it is up to every business to decide whether a PEO will work for them, there are major benefits of using a PEO, particularly for start-ups and small businesses that are unable to manage administrative and HR responsibilities on their own.
A study by economists Laurie Bassie and Dan McMurrer shows that businesses that use PEOs have a 7-9% faster rate of growth, 10-14% lower employee turnover, as well as a 50% lower likelihood of going out of business. This is because PEOs allow them to focus on their core values, which in turn aids in increasing productivity and becoming more profitable.
Smaller businesses can also acquire access to employee benefits usually enjoyed by bigger businesses, including 401K plans, life insurance, health insurance, dependent care etc. Moreover, HR services provided by PEOs give businesses access to beneficial processes that they may not be able to afford otherwise. These include onboarding, recruiting, as well as training of employees. This is especially useful for smaller businesses that wish to hire top talent in the market.
Using PEOs also has monetary benefits. On average, business owners are able to see an average return on investment of over 27% annually if they use a PEO. Processing and accounting costs are also reduced by PEOs. As they are experts on compliance related to employment, they also help employers avoid paying fines resulting from compliance issues such as mistakes in payrolls. This prevents businesses from facing lawsuits and having to pay heavy legal fees.
Moreover, PEOs can offer a larger selection of employee benefits than would otherwise be available to businesses. The cost of insurance and other benefits is also reduced as PEOs can negotiate rates. Another advantage of using a PEO is that clients can benefit from shared liability. PEOs lease employees, which means that the employees come under the tax ID of the PEO. Resultantly, the risks and liability issues are not solely handled by the business.
The manual administrative processes associated with payroll are eliminated by PEOs which enables employees to be more productive. While some PEOs only offer payroll processing services, others also provide the option to completely manage payrolls. This further reduces overhead costs as businesses do not need to hire additional staff to handle such tasks.
HR issues can be extremely complex, and small businesses may not be able to handle them on their own. PEOs can help manage administrative and HR-related tasks. This allows clients to focus on running their business, which enables them to streamline their operations and fosters growth in business.
Apart from saving time and handling difficult tasks, PEOs offer numerous other benefits for potential clients. If you want to avoid costly pitfalls and ensure that your business is successful, using a PEO might be worth considering.

Contact PEO Solutions Provider for details.