Recent Survey: Top 10 Benefits of a PEO


Business owners are faced with hundreds of decisions every day. These are decisions that can heavily impact both their personal and professional lives. Because they want their companies to succeed and flourish, business owners will work countless hours sacrificing personal time with loved ones, hobbies, and vacations, for the “good of the business” in today’s competitive and demanding marketplace. These business often don’t know about the benefits of a PEO and how they can leverage them to create a stronger company.

Many business owners express their greatest concerns and priorities are to control costs, increase profitability, and attract better employees thereby strengthening their companies.  A popular solution many companies use to alleviate their financial, legal, compliance and time management burdens of administering their own human resource and benefits programs is partnering with a Professional Employer Organization (PEO).

Professional Employer Organization (PEO)

A PEO is a firm that provides services under a co-employer agreement whereby an employer can outsource employee management tasks such as:

  • Employee benefits administration
  • Payroll and tax compliance
  • Workers’ Compensation
  • Workplace safety and risk management
  • Employee recruitment, onboarding, and training and development.

Benefits of a PEO are numerous

By using a PEO, the business owner can comfortably hand off these time-consuming employee related tasks and compliance requirements, thus allowing them to focus on their core business operations resulting in growth, increased revenue, and overall business success.  Additionally, the cost savings derived from employee aggregation with other client businesses can be reinvested into the company. This is one of the big benefits of a PEO – extra manpower at little additional cost.

The Top 10 Benefits of a PEO Are:

  1. The PEO provides the expertise of trained and licensed professionals in Human Resources, Benefits administration, Payroll and related tax compliance, and Risk Management
  1. Assumes certain employment related liabilities
  1. Delivers professional assistance with employment related legal and regulatory compliance (ADA, Payroll, OSHA, EEOC, FMLA, FSLA, etc.)
  1. Provides secure internet access to Payroll, Benefits and Personnel Data for the employer and employees
  1. Provides access to Professional Human Resource Guidance and Materials
  1. Manages Employment and Risk Management related claims and coordinates return to work schedules
  1. Provide Employee Handbooks, Policies, Procedures and Best Practices
  1. Improves Cost Control through vendor management
  1. Delivers access to superior, lower priced health benefits by aggregating small business employees resulting in the ability to compete in benefit packages offered by much larger employers
  1. Provides high quality benefits packages that include employer sponsored retirement packages to attract and retain the highly-skilled loyal employees – maybe the most important benefits of a PEO

Businesses today spend significant time, money, and resources trying to manage their daily operations. And they try to do it in the most efficient way possible. This provides a strong and rewarding work environment for their employees. Partnering with a PEO can:

  1. enhance employee productivity
  2. provide better employee flexibility
  3. increase talent recruitment and retention, resulting in:
    • an energetic work culture
    • high employee engagement
    • loyalty
    • overall profitability

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