7 Ways PEO Services can take your business to the next level.
PEOs (or Professional Employer Organizations) are the hottest thing to hit the SMB community, as PEO services prove to help businesses grow. According to a 2016 study conducted by the National Association of Professional Employer Organizations (NAPEO), businesses working with a PEO are growing 7-9% faster than other companies. Are you ready to take your business to the next level?
Here are some ways you can bet PEO services will help you get there.
WAY No. 1 | PEO services give you back valuable time to spend on revenue-generating activities.
Small business owners spend upwards of 20% of their workday on HR activities. While things like preparing and processing payroll, benefits administration, and other employment paperwork are a necessity, is this the best use of your time? A CEO’s time is more profitably spent on revenue-generating activities like networking and customer relationship management. When you partner with a PEO, you gain a full team of HR professionals who will take the HR administration off of your plate. Now, you have more time to spend on what really matters!
Way No. 2 | PEO services attract better employees.
Your company is only as good as the employees it hires. If you’re having trouble attracting the best talent, you’re not alone. The latest quarterly Wells Fargo/Gallup Small Business Index report found that 18% of small business owners list hiring as the biggest challenge right now.
So, which PEO services will put your business in a position to compete with larger companies for the best talent out there?
- Professional HR infrastructure: From the application process through employee onboarding, a PEO creates policies and procedures for a compliant and professional hiring process. Many offer applicant tracking systems that further HR efficiencies with a smooth transition from candidate to employee.
- Improved company culture: A PEO partner is invested in your organization’s success. These HR professionals recognize the impact that company culture has on employee productivity. They will work with you to develop the culture that will make your business most successful.
- Affordable benefits: Companies spend an average of 31.7% of employees’ full compensation package on benefits, according to the Bureau of Labor Statistics released in September 2018. So, how can a smaller business make benefit dollars go a bit further? PEOs pool your employees with other organizations’ employees to generate better buying power. Also, they administer all of your benefits and assist with claims management to drive the cost down for the entire group. When claims are made against these larger policies, the impact is smaller than it would otherwise be for a small business.
- More benefits: What can you do with these types of savings? Maybe adding more benefits like vision, dental, short and long term disability, life insurance or others will attract more candidates.
Competing with larger companies for amazing talent is no small feat. Partnering with a PEO is a massive step in the right direction. PEO services provide an impressive HR infrastructure and caliber of benefits generally found in larger companies. This allows a smaller business to attract a larger pool of candidates and ultimately find better talent.
Way No. 3 | PEO services help you put the right people in the right positions.
A PEO can assist you in hiring managers with the ability to effectively manage people and individual contributors with the natural talents to succeed in a specific role. According to a recent Gallup study, these strategic hiring practices could increase revenue potential by 32%. Consider other benefits of PEO services like engaged employees and improved company culture and this same study shows your revenue growth potential can be upwards of 59%.
Way No. 4 | PEO services can reduce the bottom line on mandatory expenses like Workers’ Compensation insurance and unemployment taxes.
The same better buying power and lower insurance claim impacts apply to these necessary expenses too. A PEO will work with you to improve safety, mitigate risk, develop a Return-to-Work program, or fight un-necessary claims to drive lower costs. A PEO strives to keep the entire group as healthy and compliant as possible.
Way No. 5 | PEO services keep your business compliant to avoid legal fees and fines.
Through a co-employment agreement, your organization and a PEO will share the employment liability of your employees. Therefore, a PEO is very interested in guiding your organization to operate according to all of the employment laws that govern your business. As you grow and expand business geographically, this only gets more and more complicated. PEO professionals, well versed in the ever-growing list of employment laws and their seemingly never-ending changes, advise you every step of the way.
Way No. 6 | PEO services provide access to HR technology to automate HR processes for efficiency.
Many SMB’s do not find it purchase all of the HR technology that they are privy to when partnering with a PEO. With access to various technology, your hiring, onboarding, payroll processing, benefits administration, and other processes will be streamlined for higher efficiency.
Way No. 7 | PEO services provide a one-stop HR shop. It can be time-consuming and challenging to work with different vendors for every facet of HR services and products.
Between payroll needs, benefits shopping and administration, Workers’ Compensation insurance, and so many other products and services that fall under HR, it can be overwhelming. Partnering with a PEO is a great way to consolidate those relationships (and invoices) with one point of contact. Now, you’re working with a vendor that has a full picture of all of your HR needs who will ensure everything runs efficiently and is billed appropriately.
Are you ready to take your business to the next level?
We’d love to talk to you more about the impact PEO services can have on the growth of your business. Submit your information below or call 630-928-0510 today for more information!