PEO: No Longer A "Last" Resort

What is a PEO?

A Professional Employer Organization (PEO) enables business owners to responsibly and cost effectively offload the management of human resources and other employment-related tasks including employee administration, workplace safety, compliance, unemployment and workers compensation claims, risk management, benefits, payroll tax compliance and more.

Through this co-employment arrangement, the client and the PEO contractually share employer responsibilities and liabilities. PEO clients come in all sizes and industries. A PEO can help your business grow to the next level by enabling business owners with an increased cash flow and more time to focus on core objectives that move the bottom line.

Who Can Utilize a PEO and Why Should Owners Care?

Businesses of all sizes and industries can utilize a PEO. Depending on the circumstances of your business and overall goals it is worth exploring options with a seasoned PEO expert such as Axis Group as they have access to the largest PEO vendor network in the nation and the ability to fine tune solutions based on your industry and needs. Owners reap the benefits of using a PEO by simplifying employee management & centralizing functions while reducing overall risk & improving employee retention. The additional support saves business owners time enabling more time to focus on company objectives to drive revenue and growth.

Are PEO Solutions New?

PEOs are not new; they have been around for a long time however due to a few bad apples that are no longer around, the industry operated as a last resort for companies seeking workers compensation coverage. Luckily, the industry has risen above and purged majority of the shady vendors out for a quick dollar. PEOs have evolved and transformed their solutions into a very effective solution providing businesses value and support to be effcient and acheive optimal success. The statistics speak for themselves when it comes to the mainstream adoption of PEO.

The Statistics:

• Businesses Utilizing PEO: Approximately 250,000 small and mid-sized businesses and 2.5 million people are part of PEO arrangements.?
• Legislation: PEOs operate in all 50 states however certain states (40 States Year to Date) have legislation due to widespread adoption in primary industries and markets. This shows you that PEO is not going anywhere.
• Healthcare Access: 4 to 6 million people have access to healthcare through Professional Employer Organizations master policies.
• Healthcare Savings: With healthcare costs on the rise, businesses can save from 10-40% on health care costs.?A PEO uses an umbrella method and takes on many small business companies and consolidates them to offer each lower premium medical benefits.?Using this method levels out of the playing field and allows smaller companies to offer what a larger company would provide.
• Employment- Based on data from the Bureau of Labor Statistics 2.7 - 3.4 million employees who benefit from PEO services, That's larger than the size of?the entire agriculture industry and very close to the size of the federal government, the education sector, or the information?sector.

The Future

Our world is changing faster than we can keep up with. In order to stay relevant; businesses must be extremely efficient at what they do best and become a master of their craft. Leveraging outsourcing solutions with an Administrative Services Organization (ASO) or Professional Employer Organization (PEO) will provide your company the necessary tools to do just that by enabling your organization and employees to focus on tasks that drive the top line revenue without impeding the bottom line and keeping economic shifts from derailing your business completely.

If you are still unsure, contact Axis Group for your free evalution today. Our goal is to provide you with accurate information to empower your organization for the future and want to assist on every business owners quest in building a successful, impactful, and profitable business.?