Top 10 Reasons to Partner with a PEO

A Professional Employer Organization, or PEO, provides small and mid-sized business with payroll, benefits, and HR services for improved productivity and profitability. It also frees up valuable time to focus on mission-critical and profitable activities, so busy business executives can grow their business. There are numerous benefits to partner with a PEO.

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National Association of Professional Employer Organizations |

Here are the top 10 reasons your business should partner with a PEO.

1| Gain access to a full HR team of professionals for a fraction of the price.

Your business may have an administrative person in charge of payroll, benefits or other HR functions. What you won’t get out of this employee is the very specific expertise that can be offered by a PEO. So why not allocate that employee to more mission-critical work while the experts handle your HR administration?

When someone without expertise in human resources is handling the administration, there is a lot of room for error. Regardless of intent, you can be held liable for things like payroll mistakes and compliance issues. Likewise, you may be impacted by unnecessary unemployment rate hikes if your team isn’t fighting the right claims. PEOs hire teams of professionals with expertise in HR compliance, payroll, benefits, risk management and safety, and much more. When you partner with a PEO, you gain access to all of these resources. Because you share the cost of these professionals with other companies, you are paying a fraction of the price for access to them.

2| Share business liability.

When you partner with a PEO, you each take a portion of the employment liability. You know the PEO will be looking out for your company when your liability is their liability. This gives business owners a great deal of peace of mind.

3| Keep your business compliant.

PEOs live and breathe HR. It is their business to keep up to speed on ever-changing employment law. Remember, a PEO shares liability with its clients. It is in their best interest to keep all of them compliant. When you partner with a PEO, you can rest assured that your business will have an updated employee handbook and the most compliant policies, procedures, and processes.

4| Offer better benefits to attract and retain the best employees.

As a small or mid-sized business, you may not have the means that your big competitors use to purchase loads of benefits for your employees. When you partner with a PEO, you gain access to the group’s buying power and can use economies of scale to offer more and sometimes better benefits. Aside from health insurance, PEOs often offer an assortment of other benefits. For example, you may opt to take advantage of short and long-term disability, life, vision, or dental insurance. Perhaps you want to offer a 401(k) or employee assistance program (EAP). PEOs have access to many benefits and a variety of plans.

5| Avoid benefits shopping and administration.

Who has the time to shop around for the best benefits deals and to develop relationships with carriers for ongoing discounts and better rates? A PEO – that’s who!

Also, consider the time it takes to orient and administer those benefits. A PEO will handle all of the orientations, questions, and administration for all of your benefits plans. They act as a liaison between your employees and the carriers to enact changes or settle claims issues. Bills go through the PEO so that you don’t have to worry about reconciling any insurance bills.

6| Experience better workers’ compensation rates.

A small or mid-sized company may be hit harder by a workers’ compensation claim than that of a company with hundreds of thousands of employees. When you partner with a PEO and utilize their workers’ compensation insurance, you are part of a larger pool of employees. Not only will claims have less of an impact, but the PEO has a dedicated team of risk and safety professionals ensuring all organizations in the pool are operating safely, thereby lowering the number of claims in the first place.

7| Experience better unemployment rates.

This same concept applies to your unemployment insurance rates. If you have a small number of employees, the impact of a single claim can raise rates significantly. PEOs have the resources to fight unnecessary unemployment claims to keep insurance rates low for everyone.

8| Utilize technology to automate for efficiency.

Many times it doesn’t make sense for a smaller company to invest in HR technology that will automate processes or make others simpler. Take advantage of the technology offered by a PEO to keep organized and efficient.

9| Access to all things HR in one place.

There may be times when you or your employees need a unique HR product or service. Your PEO has relationships with all types of HR vendors, allowing you to go to one place for all of your needs.

Need on-demand drug test screening? No problem! Looking for online development opportunities? We got it! You want to offer biometric screenings on site? Look no further. A good PEO develops relationships with all types of HR vendors, allowing their clients to take advantage of discount pricing.

10| People are never simple.

Your employees may be your biggest asset, but each comes with unique personalities, experiences, and beliefs. This is what makes your workforce so great. But, it can also present challenges. A professional HR department will nip employee issues in the bud. Managers will be guided to handle situations professionally and within compliance, so your employees will be more productive.

If you’re ready to discuss a partnership with a PEO – we’d love to talk to you! Our custom HR solutions will be tailored to meet your business needs.