Let’s face it – as a small business owner, you may find yourself handling everything from closing a substantial new account to cleaning up the shop at the end of a hard day. And, when you’re focused on increasing sales, getting the job done right, and balancing the company budget with help from companies like https://www.sofi.com/money/, finding the time to deal with less urgent business items like human resources and payroll management can be real challenge.
One of the best kept secrets for small businesses operating with limited time and resources is a partnership with a Professional Employer Organization, or PEO. PEOs provide cost-effective outsourcing services for critical business functions including employee benefits, payroll, workers’ compensation, recruiting, risk management, workplace safety, and staff training & development.
Today, there are approximately 700-900 PEOs operating in all 50 states that are committed to helping small and mid-sized businesses alleviate their HR burdens. By outsourcing these HR functions to a PEO, small business owners can get back to focusing on what matters most, generating sales, outpacing the competition and growing the company. So maybe instead of “What is a PEO?”, the real question should be, “How can a PEO help my small business?”
Long on value, short on cost
PEOs provide many valuable services to small business, including:
- Handling of all HR and administration responsibilities
- Providing employers and employees with a full-suite of comprehensive benefits typically unavailable or cost prohibitive to small businesses
- Assisting with recruitment, retention & employee management
- Streamlining the payroll process and reducing accounting & payroll costs
- Offering timekeeping solutions for employees
- Handling workers’ compensation & claims management
- Performing risk assessments & training employees on workplace safety
Additionally, one of the most attractive components of the PEO model is the ability for businesses to utilize (and pay for) only the services that they need, and nothing that they don’t. The PEO can be a “one-stop-shop”, or can simply serve to fill in the gaps to ensure your business is firing on all cylinders.
Lower turnover and increased business longevity
Statistics prove that PEOs greatly contribute to the long-term success of small businesses. According to a the National Association of Professional Employer Organization (NAPEO),small businesses that partner with a PEO are 50% less likely to fail and have 14% lower employee turnover than those who do not. For many small businesses, a partnership with a PEO can be the differentiator between growing a successful enterprise and closing their doors for good.
For more information on what a PEO can do for your company and how the partnership works, be sure to check out our free eguide, The Best Kept Secret to Small Business Success.