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

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 due to employee-related demands on your time? Do you often find yourself grappling with payroll processing, employee benefits costs, 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 when it comes to HR matters, it feels as though you're in over your head and your productivity is not as impressive as it should be. Good news is you don't have to wait until it gets to that point before seeking professional help.

A PEO drastically lightens your HR burden by providing small and medium-sized businesses like yours with payroll, compliance, and HR services, thereby freeing up more time for you to focus on your 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 to Partner with a PEO Today:

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

The biggest and most enticing reason you want to consider partnering with a PEO is getting access to unlimited HR functions, which includes premium quality employee benefits and health insurance, efficient payroll processing, retirement savings, fixing compliance issues, and more.

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 a single HR administrator cannot compare to outsourcing the job to a team of experienced HR professionals who understand your business and can help you navigate compliance matters, such as local labor laws 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 losing your labor market appeal for unnecessary hikes in the unemployment rate or failure to remit payroll taxes as and when due. Ideally, you want to look out for a certified PEO (CPEO), as they are best positioned to 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. This is becasue, PEO work with a much larger pool of employees from sveral other small businesses, which gives them the leverage to negotiate much lower rates with health insurance firms.

4. Increased Productivity and Profitability

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

No more wasting of business hours, which could otherwise be channeled into more productive business activities dealing with payroll. It becomes easier for you and your team 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. Some PEOs also help with pre-employment screening and checks to ensure you hire not just the right fit for each role, but the right fit for your team.

5. Shared Liability

Partnering with a PEO is a safe, cost-effective co-employment relationship for SMBs

If you like, youcan also call this 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 may not have that kind of financial 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 big offer is keeping them satisfied. Job satisfaction is one of the many reasons any employee often stick around, even though there may be higher pays elsewhere.

That's one of the big perks 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 losing and replacing employees. In other words, partnering with a reliable PEO is a proven retention strategy.

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.

PEOs like Paychex, Inperity, and ADP offer advanced HR tech solutions that automate many HR functions and make it easier to follow your company's employee-related issues.

8. Your Business Has a Higher Survival Rate

If you're a startup and looking to scale your business, one of the best ways to survive the stifling competition from bigger brands is by partnering with an organization that can absorb major operational costs like health insurance and worker's compensation insurance while you focus on the growth of your business.

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

Hire a PEO Today and Take Your Business To the Next Level

Thinking of partnering with a Professional Employer Organization today? There is a great number of good choices on the market, but so are the poor choices. We can help you make the best choice. Luckily, we work with lots of the leading PEOs in the US.

Reach out to us to today to discuss the best PEO options for your business. At the Mission, 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 at a fraction fo the cost and time you would spend searching.