Ensuring that you run your business in a cost-effective manner is vital to your business's survival. As a business owner, consider partnering with a professional employer organization (PEO) to solve your HR problems in a way that is cost-effective, scalable, and efficient. The PEO arrangement allows you to cut costs, grow faster, and provide better benefits while receiving high-quality HR administration services.
How a PEO Saves You Money
Most of the businesses PRO works with do not have a specialist HR team. Although this is a good idea in terms of growth, hiring an HR team is costly. In addition to the annual salaries, you have to pay raises and benefits.
Because of this, many smaller businesses resort to "DIY HR," where the owner, possibly with the assistance of other staff, handles most of the HR tasks themselves. However, this is not the best use of your time. Outsourcing HR functions saves time and money, which can be spent on things more directly related to your company's growth.
When untrained personnel perform HR, you are also likely to struggle in vital areas such as compliance management, worker's compensation claims, benefits administration, unemployment claims, and recruiting. Inefficiencies in any or all of these areas can result in lost productivity, fines, or even lawsuits.
Hiring a PEO is Less Expensive
Working with a PEO solves these problems with less expense and a greater chance of success. For example, you have access to not just a full-time compliance officer but a team who can help you handle complicated issues such as having remote employees in multiple states.
You don't have to waste time or money on HR costs and can focus on revenue-generating aspects of your business. On top of that, improved compliance also saves a lot of money. The cost savings of a PEO are both direct (reduced costs) and indirect (reduced turnover and improved productivity).
PEOs Improve Recruitment and Retention
A PEO has the experience you need to do recruitment right. It's easy for a new business to hire the wrong people who are not qualified or not a fit for your company's culture.
Hiring the right people in the first place improves retention and increases morale, although this is not the only way in which PEOs can help with retention. At PRO, we can help you develop a company culture that encourages people to stick around and offer the right professional development and training. This also improves productivity and performance.
Businesses that use PEOs have 10 to 14 percent lower turnover than businesses that do not.
PEOs Improve Wellness and Safety
PRO offers a comprehensive, personalized wellness program that helps with employee morale and performance. By encouraging your employees to stay healthy, you experience lower healthcare costs and fewer injuries.
We can provide everything from handbooks and policies to safety training designed for your industry and based on our other clients' experience. Our safety training programs are the best in class, and we work with you to provide exactly what your company needs.
We can also help you design a safety and return to work program that will significantly lower the cost of each workers' compensation claim (keeping premiums down) and help get injured workers back on the job faster, reducing downtime.
PEOs Lower Benefit Costs
Because of the mechanism of co-employment, PEOs can put your employees on their healthcare, retirement, and workers' compensation plans. This typically allows you to provide much better benefits at a lower cost. In fact, without a PEO, most small companies simply cannot afford to offer any kind of retirement plan at all.
By providing comprehensive healthcare and retirement benefits, you don't just save money but gain the ability to compete with much larger companies. You will be able to attract and retain better talent, and your employees will feel as if you are taking better care of them and their families.
More Than Just Saving Money: Increase Business Growth With a PEO
Statistics show that PEOs increase business growth.
In fact, PEO clients grow 7 to 9 percent faster than equivalent businesses that do not work with a PEO. During the pandemic, non-PEO clients were 2.4 times more likely to shut down. On top of that, we reduce turnover, which improves employee morale and helps you save money on HR by not spending as much time on recruiting, onboarding, and training.
At PRO, we support the growth of your business by allowing you to avoid expanding your team to include HR or developing your HR team further, with the required additional oversight. We free you up to focus entirely on actually running your business.
If you need to cut costs and increase business growth, check out PRO Resources to learn what we can do for your business.