What Can a PEO Do for a Growing Small Business?
Are you wondering why more business owners are partnering with a PEO? The answer is simple: business growth and revenue increase due to the many benefits of small business and PEO partnerships. In fact, research shows that the PEO industry is growing at an annual growth rate of nearly 7.6%. Why? Because 173,000 (and counting!) businesses currently rely on a PEO partnership to keep their employees happy and productive, legal requirements up-to-date, administrative tasks streamlined, etc. — and all at a more affordable price than strictly in-house.
As the popular saying goes, "Work smarter, not harder."
PEOs, or professional employer organizations, help you work smarter, not harder, with important knowledge on how to encourage small business growth. Here's what a PEO can do for your growing business.
Access to HR Professionals
Access to HR professionals without hiring a team is one of the most important benefits of a PEO partnership. This is because the money you can save will allow you to comfortably compete against the biggest companies in your industry without breaking the bank.
You can save thousands —if not millions over time — in just a few costly areas like salary (averages around $61,920 a year per employee), training (costs on average $1,252 per employee — not including continued learning), and benefits (costs companies an additional $11.42 an hour per employee). And that's only the tip of the iceberg when you add in automation for tedious tasks, assistance with company culture, and employee benefits to lower turnovers and increase retention.
PEOs work for you and with you to improve all HR responsibilities. This is significant since the workplace environment is changing substantially amid a talent shortage. More and more job seekers expect better benefits, more competitive salaries, and a company culture that aligns with their values and personality.
Streamlined HR Processes
Many business owners and leaders wear too many hats and take on payroll and other administrative duties themselves. If you plan to expand, this can be detrimental to your company's growth, especially since it restricts you from giving your full, undivided attention to more important matters. A PEO can help.
For instance, the types of tasks that PEOs take care of include:
- HR tasks like hiring, onboarding, training, customized procedures/manuals, and more.
- Payroll and compliance services like answering employee questions, storing employee records and files, filing forms and tax returns, certified payroll reports, and more.
- Workplace safety and workers' compensation services include ongoing employee training, risk management, claims management, fraud investigations, and an assigned risk manager.
- Benefit plans and administration services like administering the PEO's benefit plan, responding to employee questions and claims, enrolling employees, and access to important plans and programs.
- Wellness programs and services can reduce healthcare costs, increase productivity and morale, lower absenteeism rates, and reduce accidents.
As a bonus, it's also better for employees when PEOs handle HR. This is because they specialize in assessing what your employees want and need to be successful with you and what it will take to increase their satisfaction and loyalty to your company.
PEOs can also help you stay up-to-date and compliant with federal and state laws. This is significant because laws and regulations can add up and get complex as you grow your brand and expand your reach in the market. Considering you can lose a considerable amount of money when not compliant — whether out of ignorance or on purpose — having a PEO on hand to help can make a big difference.
The cost of non-compliance is nearly three times higher (more accurately, 2.71) than it would be to ensure your company meets or maintains compliance regularly. The same report marked the range of non-compliance average costs to be between $2.2 million and $39.2 million.
When competing against the most successful brands in your industry, attracting top talent to your business can be stressful. Typically, the bigger the company, the better the employee benefits and incentives. PEOs are changing that.
PEOs can offer better benefits at a lower cost. This means you get access to all top-ranked employee benefits — i.e., healthcare, 401k, vision, dental, health & wellness programs, mental health support, etc. — without sacrificing your profits. Not only does attract the right talent to your company, but it can also help retain the top talent you currently have!
Maintain Employee Wellness
Better benefits, particularly those dedicated to bettering employee health and wellness, lead to happier and healthier staff. Maintaining employee wellness shows employees how much you care about their overall well-being, in and outside the office — mentally, emotionally, and physically.
Moreover, wellness helps your business and bottom line, improving:
- Retention and More
When companies focus on wellness with the help of a PEO, they improve culture and employees' mental and physical health. Most businesses today offer it, so it can be a huge risk not to. According to one study, this was true for 53% of small businesses and 81% of large companies.
Enriched Company Culture
PEOs can also help establish or enhance culture. This is important because research shows that strong company culture can often lead to a 202% increase in performance, a 33% revenue increase, and more interest from top talent (15% of job seekers turn down a position because of a company's culture).
Enriched company culture means more improved:
- Customer Satisfaction
- Employee Fit
- Brand Reputation
- Happiness at Work
- Employee Communication and Collaboration, etc.
Grow Your Business and Succeed With PRO
Can your business grow with a PEO? The answer is a resounding— Yes!
As a PEO since 1991, PRO Resources has a track record of helping businesses grow and succeed. With their two-pronged approach that includes real HR experts and technology driven Human Resources, PRO Resources allows companies like yours to spend less time on paperwork and more time on ensuring your workplace is a healthy and productive environment—focused on its people, not paperwork.
Contact us to learn more about our HR, Payroll & Compliance, Workplace Safety & Workers' Compensation, and Benefits Plans & Administration services.