How A PEO Can Add Value To Your Business

There are many benefits to working with a Professional Employer Organization if you’re a small to medium-sized business. Whilst every business requires its own unique PEO solution, overall it can elevate your company and your employees’ experience of it. 

It works as an outsourcing solution to manage multiple aspects of your business such as Human Resources, payroll, benefits, health insurance, workers’ compensation, 401(k) and retirement plans. This is a co-employment model that sees your PEO taking on the responsibility of your company’s HR. In the long term, this can add to the value of your business in both social and financial capital. 

Time Is Of The Essence

Anybody trying to manage the admin of their business alongside the daily goings-on understands just how much of your time can be eaten up. This is time you could otherwise put into growing and expanding your business in other capacities. Ultimately this can lead to the slipping of standards in various areas of your business that no amount of HR or compensation will be able to fix! 

PEOs create freedom for you to focus on where your business is going. The benefit of using an employer organization is that they can take care of time-consuming tasks like sorting payroll and purchasing workers’ comp policies for you.

Similarly, if you’re sitting at your desk or cooped up in your office all day, where’s the time to catch up with your team?

PEOs can help to provide an even greater employee experience. Handling the brunt of the HR, this leaves you to focus on staff wellness and company culture to overall sustain a more pleasant working environment. 

According to the National Association of Professional Employer Organizations (NAPEO), businesses that use PEOs are more likely to see their staff reporting higher on questions of employee satisfaction and confidence in company management. This, in turn, can lead to higher levels of employee engagement, higher staff retention rates, improved trust between employee and employer and overall helps everyone feel comfortable that the company will be able to succeed and grow. 

Don’t Risk It

PEOs aim to work strategically with your business goals in mind whilst simultaneously minimizing risk. This could mean anything from compliance issues to medical compensation. 

If a small business attempts to handle compliance issues on their own, they could be opening themselves up to some serious risks. The money you thought you were saving? That will quickly be drained in legal fees, penalties and so on. 

Some business owners may not even be aware there’s a rule they’ve broken. There are plenty of regulations to keep track of and some business owners spend so much time checking regulations that don’t even apply to them! This time adds up. 

A PEO can help you avoid making any mistakes that could land you in hot water. With a more sound knowledge of the regulatory frameworks and so on, they can identify any compliance issues quickly and deal with them thoroughly. 

Add value back into your company by allowing yourself and your team to get back to strengthening the company, improving on productivity and instigating growth from the time saved. 

Bills, Bills, Bills 

Say you’re looking into purchasing your workers’ comp, medical premiums or health insurance separately, you’re significantly increasing your costs. 

As your company grows, so does your team and your general and administrative costs rise too. As all of this starts to add up, you may be tempted to cut costs. But this is where problems can arise.

The annual return on investment is a common concern for small business owners when it comes to assessing circumstances or making any big decisions. Particularly, when it comes to using a PEO. 

“Administrative costs are around $450 lower per employee for businesses that use a PEO” - NAPEO. 

Working with a PEO can significantly reduce these costs, but only if you find the right one! So, what can you do? 

Finding The Right PEO For You

A huge part of the PEO broker model is the fact that it’s essentially wholesale. Unlike the traditional model where you’re paying on each service item: payroll, benefits and workers’ comp.

Good brokers can get you the best service for the best price to ensure you’re only adding value to your company. At BRG Advisory Group, we don’t make more money when you choose a particular PEO service over another - so you know you can trust our guidance. 

We were formed due to the unique need we saw in the market for a firm that would operate on a client-focused level whilst securing you the best solutions to meet the long-term needs of your business.

If you’d like to know more and start working smarter (instead of harder) you can visit our website or email us at [email protected]