If you’ve ever heard of a PEO service, you’ve likely wondered what it is and what kinds of benefits it can offer to your business. Luckily, there are hundreds of PEO services available all over the country, and the information regarding their practices and benefits is abundant. Here, we’ve compiled a short list of seven facts about PEO services, so you can make the decision whether to utilize one for your business or not. There are plenty of reasons a small business might use a PEO service, but these seven facts answer some of the most common questions about the industry.
1. The PEO Industry is Booming
With thousands of businesses turning to the PEO industry for help with personnel, benefits, and more, the industry is booming. According to NAPEO, the industry serves around 175,000 small businesses in the US and is a billion-dollar industry. There are nearly 1,000 different PEO services available across the country, and each offers services that any small business could benefit from using.
In the last decade or so, the PEO industry has made quite an impact on employers and employees, providing helpful services and taking those small businesses to the next level. By choosing a PEO service, then you’re improving your business in a way that you never could have on your own. Your employees will be grateful for a more streamlined and effective HR/personnel department and better benefits. To find the best PEO company for your business, consider your individual needs and budget, and do a geographic search to find what’s closest to you.
2. Focus Mostly on Small Businesses
In the business world, it can seem like the larger corporations get all of the benefits and small businesses are left by the wayside. The fact is, small businesses make up the majority of businesses across the nation, but in the grand scheme of things, they seem to be forgotten. They don’t have many resources available, or organizations to help them grow and prosper.
PEO services service small and medium-sized businesses for the most part, giving these companies an upper-hand in an environment that seems to favor their larger counterparts. If you’re a small business looking to improve your efficiency and compliance, a PEO service is just what you need.
In business, the more you can reduce the liability of the company, the better. Great risks mean the potential for greater danger, and your business can lose everything if you’re not careful. By using a PEO service, you’ll be reducing your risk and ensuring you’re staying in compliance, training employees properly, and protecting your business interests. PEO services focus on training and keeping businesses in compliance, so you can take a much-needed breath and ease your mind. Everything will be handled by professionals!
PEO services help improve the turnover rates of small businesses. When you’re just starting out, it can be difficult to find good candidates, let alone keep them. You may not have a great training program, work environment, or you haven’t figured out your payroll system yet. Either way, high turnover rates can have a serious impact on productivity and your reputation as a whole. A PEO service will reduce turnover and make your company more attractive to potential candidates and keep them loyal throughout their time at your business.
5. Offer Better Benefits Packages
Potential employees will want to see that your company offers great benefits, but as a small business, it can be nearly impossible to get the best packages and rates that are available to larger corporations. By signing on with a PEO service, you’ll have access to much better benefits packages and services. This can help make your business a more viable option and keep your current employees happy, loyal, and fulfilled.
6. Manage Small Business Compliance
Keeping up with compliance requirements for your business can be exhausting and confusing, especially when the requirements differ from industry to industry and state to state. Trusting a PEO company with your compliance needs means you’ll always be up to date with the latest requirements, and everything from paperwork to taxes will be filed properly and accurately on your behalf. Don’t trouble yourself with such things when a PEO service can make it easy and efficient!
7. 50% Less Likely to go Out of Business
According to the same NAPEO page listed above, businesses that use a PEO service are actually 50% less likely to go out of business. Those sound like pretty good odds, don’t they? Improving your business’s compliance, payroll, personnel interactions, and more can make your business survive and thrive well into the future. Try out a PEO service today and take your business to the next level while simultaneously securing its future and improving its overall reputation.