If you run a growing small business, you know that the challenges can feel overwhelming. On top of the daily operations, you likely have to handle the time-consuming HR and accounting paperwork necessary to pay your employees and meet government regulations. These additional responsibilities can make it difficult to focus on continuing the success of your business.
These challenges are why so many companies just like yours turn to PEOs for assistance. PEOs, or professional employer organizations, exist to provide you with HR and accounting expertise like you had your own in-house HR staff. Having the assistance of a PEO means that you can stay focused on your employees and your clients. But the benefits don’t end there.
If you want help finding the right PEO to help your business grow, call (678) 376-1212. Whether you’ve never worked with a PEO before, or you’re not satisfied with your current partner, our PEO brokers will work to understand your needs and find a strong fit for your business.
Small Businesses Benefits for PEO Users
Research by the National Association of Professional Employer Organizations (NAPEO) shows that businesses who partner with a PEO do better on average than businesses who don’t. These PEO users see:
- A 50% decrease in the chances of closing permanently
- Up to 9% faster revenue growth
- Up to 14% less employee turnover
Not only do businesses see improved revenue growth and improved employee retention, PEOs also provide their partners with other benefits. PEO users can also offer their employees:
- Access to retirement plans
- Improved healthcare plans
PEO users can offer these benefits to their employees because of the co-employment agreement they sign when they partner with a PEO.
Understanding Co-employment
When a business partners with a PEO, the PEO takes some legal responsibilities for the employees of the business. Both the business and the PEO become employers of record for the employees. This is known as co-employment.
This co-employment arrangement is why businesses who partner with a PEO can offer their employees better healthcare plans. The employees can be grouped with all the employees of the PEO, including those of other businesses who have signed a co-employment agreement. This larger pool of employees creates less risk for insurance companies, who can then offer better health plans at lower premiums.
Services for Small Businesses Using PEOs
Part of the process of partnering with a PEO is determining what services your company needs. Different PEOs offer different HR and accounting solutions, so it’s important to know what functions you need help with and what the PEOs offer.
Benefits and Payroll Administration
PEOs can help your business with both benefits and payroll administration. The PEO can help your employees record their hours worked, calculate your payroll costs, and even write your employees’ paychecks on your behalf.
Regulation Compliance
Worried about running afoul of government regulations, like the Affordable Care Act? Your PEO partner takes on the responsibility of complying with the regulations affecting your business.
Recruitment and On-boarding
Want to hire new employees but unsure of the best methods in the current market? You can work with your PEO partner to devise a recruitment strategy to find the perfect match for your growing business needs. Once you’ve found your next hire, your PEO partner can handle the necessary paperwork and provide your new employee with the information they need to get started quicker.
Employee Training
Do your employees need continuing education in order to perform their jobs? Do you need an employee handbook so everyone can understand their responsibilities and benefits? Your PEO partner can help arrange training and create an employee handbook on your behalf.
Paying for a PEO
One of the other benefits for small business partnering with PEO is the cost. NAPEO reports that businesses pay an average of $450 less per employee in administrative costs. This savings comes from the lower price tag for a PEO over hiring an in-house HR team.
Paying for a PEO is based on fee schedule you agree to when you sign up with the organization. The fee schedule comes in one of two forms:
- Flat fee per employee
- Percentage of gross payroll costs
Have only a few employees with high salaries? A flat fee might save you money. Have a lot of entry-level workers? A percentage of your payroll costs might be better for your bottom line.
NetPEO Can Help Your Small Business for Free!
Unsure of what you need or what PEOs offer which services? NetPEOs brokers can help you navigate the PEO market. We conduct an initial needs analysis to determine what services you need and what types of PEOs are appropriate for your company. Call us (678) 376-1212 to start learning more today!
