Proudly Sponsored By these Premium PEO’s

PEO Blog

Learn More About the PEO Industry

6 Reasons to use a PEO – Professional Employer Organization | PEO Blog

Monday November 21, 2011

If you are like most business owners, you want to maintain control over every aspect of their business. Your intentions are good; they could actually be hindering your company’s growth. According to the U.S. Small Business Administration, owners of small companies spend as much as 25% of their time dealing with employee-related issues. This is REAL TIME and REAL MONEY that would be better spent tending to the moneymaking functions of your business.

Here’s a great idea, in order to better allocate time and resources, many small businesses are choosing to turn over employee-related tasks to a Professional Employer Organization (PEO). A PEO will take the majority of human resources responsibilities off your hands which creates improved efficiencies and streamlines HR functions by:

1.  Handling the paperwork. The average small business handles roughly 36 New York City phone books worth of paperwork per year. From payroll to personnel, day after day the stacks and stacks of paperwork soak up valuable time and resources. As a client of a Professional Employer Organization, you’re relieved of a large majority of the paper pushing, so that you can put that time and money toward core business activities.

2.  Providing professional HR advice. The individuals that are employed by a PEO are human resource specialists who know the ins and outs of Human Resources. When you enter into a relationship with a PEO, these HR specialists become part of your team; they are at your disposal should you need to pick their brains about any HR issues that arise in your workplace.


3.  Offering comprehensive and affordable employee benefits. Small businesses seldom have access to benefit options that larger businesses do, this relates to both health, medical and retirement services.  It’s simple, smaller companies have less leverage when it comes to negotiating and coordinating health care premiums and rates with benefit providers. As a PEO client, your employees could have access to benefit options you could never before have access to. 


4.  Attracting top talent. Quality candidates, have the ability to be choosy, look to settle down in a business that will give them the most for their time and service. Many of those candidates value a company’s benefit packages as much as the potential salary. The employment benefits that your company provides as a PEO client, add a silver lining to any job opening within your company. In addition to attracting the best talent, quite often this process helps create those “Golden Handcuffs” you want to retain the talent you worked so hard to make part of your organization. 


5.  Keeping an eye on the government. State and federal regulators are always changing their minds about the rules of doing business. In order to stay out of trouble with the law you need to always stay current on what regulations apply to your business and what steps you need to take to stay compliant. A Professional Employer Organization will look out for your business and make sure it’s in line with both state and federal regulations at all times. And if something should be out of whack, your PEO will give you the guidance you need to get things back on course


6.  Limiting liability. What’s one of your worst nightmares? A lawsuit!  As a PEO client, you’ve got a team of experts in place to help minimize your exposure to the legal hassles that could arise as you being an employer.  Quality PEO’s will help you take all the right precautions to avoid mistakes or dangers in the workplace. It will help you set up workplace training, safety procedures and policies that will limit any hazardous or unlawful situations


7.  FREEDOM for YOU to focus on the business of doing business. Small business competition is fierce. In order to succeed, you need to be able to focus on your business—your products or services. By using a PEO to handle the administrative side of employment, you can dedicate more of your time and resources to the heart of your business.

While some small business owners are wary of handing over or sharing control, a good Professional Employer Organization will make it a point to continually communicate with the business owner and involve them in all decisions that affect the business. Outsourcing this part of your Human Resource process is a decision that you shouldn’t take lightly, the key is find the right PEO for your company.

PEO.com is a great source to find PEO’s that service your area and industry, find out more at www.peo.com

Proudly Sponsored by these PEO Industry Vendors and Suppliers