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Top 8 Reasons to Partner With a Professional Employer Organization (PEO)

Updated: Jun 14, 2021


Top 8 Reasons to Partner With a Professional Employer Organization (PEO)

Are you running a small or medium-sized business? Have you been having trouble getting enough work done because of employee-related challenges? Do you often find yourself grappling with payroll processing, employee benefits, and workers' compensation in your business?


If you answered yes to at least, two of the questions above, then your business will most likely benefit from partnering with a Professional Employer Organization (PEO). You know it's time because you're in over your head and your productivity is not as impressive as it should be. But you don't have to wait until it gets to that point before seeking professional help.


A PEO drastically lightens the burden by providing small and medium-sized businesses with payroll, compliance, and HR services, thereby freeing up more time for them to focus on their main business objectives. This is how you improve productivity and profitability. Many times, productivity is not about how much you do, but about doing the best in what you can do and outsourcing the rest to the best hands.


Here are top 8 reasons you should partner with a Professional Employer Organization today.

1. Access to Full-Time Team of HR Professionals for Less

The biggest and most enticing reason you want to consider partnering with a Professional Employer Organization is getting access to unlimited HR functions, covering benefits, health insurance, efficient payroll processing, retirement savings, implementation of compliance policies, and so on.


And yes, you actually get it for less; you only get to pay a fraction of the cost, since your PEO partner will mostly be positioned as a co-employer.


Even if you have an HR person managing these functions for your small business, sooner or later, errors might begin to creep in. Having an HR administrator cannot compare to outsourcing the job to a team of experienced HR professionals. Besides, it's a good way to save yourself from issues related to compliance and payroll mistakes.

2. Ensure Your Business is Compliant

To keep your business policies and processes compliant with regulations and employment laws, an excellent solution would be to team up with a PEO. These organizations understand what the law says and they stay abreast of current trends in the labor market.


You can be sure of this because they are very much invested in your progress as you are yourself. As a small business, you risk being penalized for unnecessary hikes in the unemployment rate or failure to remit payroll taxes as and when due. A certified PEO (CPEO) can take care of this for you.

3. Access to Better Benefits for Your Employees

Companies that are in partnership with a PEO are able to offer a wider array of benefits and packages to their employees than others who do not partner with a PEO. Most PEO clients are small businesses that do not have the power or network to provide the best compensation plans, health insurance, and other benefits such as employee assistance programs (EAP) and 401(k) plans.


And the best part is that you only get to pay less while you have access to the best HR services.

4. Increased Productivity and Profitability

Since one of the benefits of outsourcing HR solutions to a CPEO is having more productive time, it, therefore, follows that the daily productivity of your business will increase.


No more wasting of business hours, which could otherwise be channeled into more productive business activities. It becomes easier for you to grow your business and meet clients' expectations. And when it's time for your business to onboard more employees, you can rest assured that the right persons will be joining your team. PEOs do pre-employment screening and checks.

5. Shared Liability

If you please, you can also regard this as having peace of mind. That typically, is the case when you know that the PEO you're working with is also liable for any damages or loss you may suffer from employee-related issues.


For instance, PEOs share liability in certain claims, which means they help handle lawsuits for issues like wrongful termination and also provide assistance and expertise to mitigate potentially costly settlements. Normally, your company does not have that kind of strength and may likely lose without the support of a bigger partner.

6. Long-Term Employee Retention

Your employees remain your greatest assets. And the best way to retain experts who'd otherwise hop away to the next biggest offer is keeping them satisfied. Job satisfaction is one of the reasons any employee would want to stick around even though there may be higher pays elsewhere.


That's essentially, what a PEO offers your business. With a better recruitment process, great compensation plans, healthcare services, and a good working environment, you can save yourself the trouble of always needing to replace an employee who has left. In other words, partnering with a reliable PEO is a way to keep your employees motivated and build a competitive advantage in your industry.

7. Access to Leading HR Technology

There are HR software that you can use to automate some aspects of human resource functions in your business. But for a small or medium-sized business like yours, this can be an expensive undertaking. Partnering with a PEO opens up the opportunity to take advantage of leading HR Technology and digital solutions.

8. Your Business Has a Higher Survival Rate

This is another very important cause for you to team up with a PEO. If you're a startup and looking to scale your business, one of the best ways to survive the stifling effects of competition from bigger brands is by partnering with an organization that'll help you stay afloat while you focus on the growth of your business.


It is believed that small businesses that partner with PEOs are 50% less likely to fail.


Thinking of partnering with a Professional Employer Organization today? You can reach out to us to discuss the best PEO options for your business. At the Missions HR, we delight in helping small and medium-sized businesses navigate the sometimes turbulent waters of human resources. If you're not sure of how to go about selecting the best PEO, we can make that happen for you.