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It’s understandable that most small business owners don’t have the time or the expertise to handle all HR functions. This is why joining a PEO can be beneficial to businesses as they grow. But what is a PEO and how will it benefit your business?

A professional employer organization or PEO provides comprehensive HR solutions for small and mid-sized businesses. Payroll, benefits, HR, tax administration, and regulatory compliance assistance are some of the many services PEOs provide to growing businesses across the country (NAPEO).

Lower Benefit Costs

By partnering with a PEO, you can not only receive lower costs for employee benefits, but the partnership can also provide access to a wider selection of quality benefit options. Since PEOs pool employees this allows them to negotiate better rates for employee benefits than a small business employer would be able to do on their own.

Workers’ Compensation Assistance

Workers’ compensation laws can be tricky. A PEO will ensure that businesses are complying with major federal and state laws. When you partner with a PEO any workers’ compensation claims will go through the process that has been put in place by the PEO partner. The PEO will then address issues that arise from workers’ compensation claims. This allows you to focus on what you want out of your business rather than focusing on the stress that comes with handling claims fairly and following the law.

HR Support

PEOs don’t only support businesses with benefits and workers’ compensation, they provide HR support in a multitude of ways. You can rely on a PEO to support you during disciplinary procedures, guarantee everything is in order when you need to terminate an employee, provide your business with a layer of protection, reduce risk, and allow you to get more of what you want out of your business.

Save Money

By relinquishing administrative tasks to a PEO, you are not only reducing stress and saving time but you are also saving money. PEO clients see an average of 21% savings on HR administration since the PEO streamlines payroll processing, the generation of checks, direct deposits, wage garnishments, tax reports, and more.

Want to learn more about the benefits of joining a PEO? Reach out to our HR Director Sarah Kramer.


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