PEOs are Dedicated to Providing HR Solutions

More companies than ever are working and growing with PEOs

Business owners are extremely aware of the potential threats to their future growth. Whether its litigation, competition, or their own employees, companies often wonder if there’s a way to spot the threat before it strikes. More companies than ever have started to turn to professional employer organizations (PEOs). PEOs specialized groups dedicated to providing human resource solutions to companies of all sizes and backgrounds. The PEO industry has responded to the demand, with just over 900 PEOs serving 175,000 companies all over the nation.

The benefits of working with a PEO are vast. Compared to those navigating alone, companies with HR assistance through a PEO have a better overall chance of survival in their industry. A 2016 report from the National Association of Professional Employer Organizations (NAPEO) found small and midsize companies using PEOs are 50% less likely to go out of business.  According to the report, these companies also experience higher employee satisfaction, leading to lower turnover and eventually higher growth rates.

A PEO can help small businesses GROW up to 9% faster. Companies SAVE an average of 35% on HR administration costs through PEO outsourcing.

Whether a business already has an HR department that is struggling to keep up with employee growth and employment law or the business is smaller and just now needs HR guidance, outsourcing may be the most productive solution. Working with a PEO allows the department to focus on what they excel at while outsourcing mundane tasks like payroll administration, benefits administration, and recruiting. The PEO can swoop in, take the uncertainties away, and provide the company with the opportunity to focus on what they do best and thrive.

Businesses aren’t the only ones noticing the differences PEOs can make. The rapid growth of the PEO industry has led to a unique development and opportunity for these companies.

To prevent unqualified PEOs from overtaking the industry, the IRS has established a voluntary certification program. PEOs willing to be vetted and prove their validity as a business asset can become a Certified Professional Employer Organization (CPEO). Created by the Small Business Efficiency Act, this certification includes an extensive list of requirements and procedures PEOs must comply with in order to obtain and maintain IRS approval.

Tandem HR

On June 1, 2017, the first group of CPEOs was processed. Included in this group was Tandem HR, a Chicago-based PEO founded by Bruce Leon.

When asked how he felt about being a leader in the movement, Leon replied, “We are humbled and honored to be one of the first PEOs to be certified by the IRS. We congratulate the rest of the first class of graduates for this great achievement.”

Though optional, PEOs who invest in the certification provide their clients with added protection and peace of mind as they’re willing to lead the industry and go beyond basic requirements

Performing another first for the industry, Tandem HR recently became the first to offer a Blue Cross and Blue Shield of IL group health plan. Nationally, 95% of doctors work with Blue Cross and Blue Shield companies. An astounding 96% of hospitals do the same, making this plan beneficial and desirable to many.

For Illinois-based companies, especially those in Chicago, having the ability to work with a CPEO who also offers exclusive healthcare is an advantage to seriously consider grabbing on to.

Tandem HR allows executives to focus on growing their business while managing the administrative aspects of human resources.


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