How a PEO Can Boost Your Business
You may be asking yourself how a PEO can boost your business- there are many different ways this can take place. PEOs assist your business with many administrative and human resources-related tasks, allowing you and your coworkers more time to focus on the business. However, before considering what a PEO can do for your business, it’s essential to understand: what exactly is a PEO?
How a PEO Can Boost Your Business: What is a PEO?
PEO stands for Professional Employer Organization. A PEO assists your business by serving as the co-employer for your employees- this means that they share legal responsibility with your business for your employees. A co-employer typically handles different administrative tasks relating to employment and human resources, assisting you with:
- Payroll Preparation
- Workers Compensation Insurance
- Risk Management
- Human Resources Compliance
- Employee Background Checks
Running a business isn’t easy- often, the biggest challenges lie within the paperwork and not the work itself. PEOs are great for tackling these tasks for your business before they get out of hand. In addition to the tasks listed above, PEOs are a useful guiding light for your business in times of uncertainty. Human resources is what they do- if you’re ever unsure about how to build a competitive benefits package, supply insurance to your employees, or even keep good employees around, hiring a PEO to have your back is a great choice.
Added time is just one way a PEO can boost your business. If you don’t have the time to spend arranging paperwork, building policies, or completing the other administrative tasks necessary for running an organization, outsourcing that work may be the correct move for your business.
How a PEO Can Boost Your Business, Quantitatively
The National Association of Professional Employer Organizations (NAPEO) has found that businesses that outsource their administrative tasks to a PEO grow 7 to 9 percent faster than their peers, experience smaller amounts of turnover, and are 50 percent less likely to go out of business. While a PEO can serve your business in many different ways, the expedited growth can be attributed to the additional time gained by outsourcing employment tasks to a PEO. Unfortunately, these tasks can be a huge time sink and take valuable time and attention away from the vital work happening within your organization.
The NAPEO has also found that the return on investment of hiring a PEO (in cost savings alone) averages at 27.3 percent. This means before your enterprise experiences the expedited growth associated with hiring a PEO; you will save a large sum of money just by hiring one instead of keeping your HR department within the business. While you may be hesitant to spend the money to hire a PEO to do something you may already do in-house or otherwise, the cost of a PEO is significantly offset by the benefits you can reap by hiring one.
PEOs are efficient at increasing employee retention rates. However, in 2021, turnover rates continued their slow and steady climb, landing at 18% for the year. PEOs are organizations dedicated to supplying human resources services to your business and employees. This access to quality HR services has been proven to decrease employee turnover.
Boost Your Business with Canal HR
Canal HR is a PEO that has been serving the southeast United States for nearly three decades. We’re an organization dedicated to getting your business the most of your time, employees, and policies. Contact us today to see if hiring a PEO is the right move for your business, or visit our blog to learn more about what PEOs can do for you.