3 Ways Growing Companies Benefit from PEO Services

As you grow your company, your time and energy must be strategically allocated to the areas of business that have the biggest impact on your immediate and long-term progress. And while building and maintaining your workforce and keeping employees engaged and productive is a number-one priority, you only have so many hours in a day. So, for an increasing number of small to mid-sized companies, the secret to success is a partnership with a professional employer organization (PEO).

Three Ways Companies Benefit from a PEO Relationship

PEOs provide big-company benefits for small to mid-sized companies.

Businesses that partner with a PEO gain a competitive edge in recruiting and retaining the best talent as, often, they can offer a higher, more competitive level of benefits than they could otherwise afford. PEOs pool employees from multiple client companies together and use this group’s purchasing power to gain access to Fortune 500 level benefit packages. These often include not only top-notch healthcare options, but also retirement plans, 401(k) plans, vision and dental coverage, child care, health and flexible savings accounts, and more.

Outsourcing HR functions allows you to focus on your core business.

Outsourcing HR responsibilities to a PEO frees you and other business leaders up to focus your time on your core competencies and strategic issues. A PEO provides a huge amount of HR administrative relief.

• According to SCORE and the Small Business Administration, HR work consumes 25 to 35 percent of a typical small business owner’s time. That’s up to three and a half days out of 10! Working with a PEO, you can free up much of this time to concentrate on business growth. Not only will you no longer have to budget time for all those HR tasks, but your PEO partner can do a better job, simply because that’s their area of expertise.
• Administrative costs are about $450 lower per employee for businesses that work with a PEO. Your accounting is simplified, as well. You can consolidate virtually all labor-related expenses into a single line item.

A PEO partnership helps you to more effectively manage and mitigate risk.

One of the responsibilities of a PEO is to provide expertise, education, and guidance on employment laws and regulations. This includes staying current with the constantly changing nuances and details involved. This can be a full-time job in itself.

• There is often a lessening of risk when working with a PEO, simply because there is less chance of mistakes when experts handle HR and employment management matters.
• PEOs also specialize in the development of safety programs, manuals, communications, and training. This can help you foster a safe, efficient company culture that ultimately lowers the number of injuries that occur at your workplace.

Interested In Learning More About PEO? Get in Touch With Key HR!

Key HR is aligned with preferred provider companies, including industry-leading PEOs, to offer new and innovative ways to meet your payroll, HR, and insurance needs. Our relationships with these experts can help you control costs, save time, optimize your workforce, grow revenue, and minimize risk. Read our related posts or contact us today to learn more.