Achieve better business results with PEOs


To remain resilient in these unpredictable times and beyond, small business clients are looking for efficient processes and expert advice to meet the various challenges posed by the COVID-19 pandemic.

Attracting and retaining talent, managing a human resources department, onboarding new employees, administering payroll and other benefit programs can be difficult for small businesses to manage and require in-depth knowledge of each subject. Providing clients with the opportunity to work with a professional employers’ organization can help increase overall efficiency and profitability by offloading the key administrative tasks required to run a business and allowing them to refocus on business priorities. higher level, such as achieving better business results. PEOs can relieve some of the stress employers may have associated with key HR tasks, making it easier for the business to run smoothly.

A PEO allows clients to outsource key aspects of their business, including payroll, benefits administration and insurance, as well as offer support through human resources consultants who can provide expertise to clients on topics such as benefits, payroll, regulatory compliance, workers’ compensation, risk management and more. Among many other benefits, PEOs can also help businesses resolve tax and reporting complications that have arisen over the past year, while allowing employers to provide their employees with the best possible benefit options.

From profitability and cost savings to business longevity, clients seeking greater freedom from the complexities of HR and business administrative tasks can greatly benefit from working with a PEO.

Competitive advantage in the labor market

For small and medium-sized businesses, it can be difficult to compete for top talent while focusing on retaining current employees. And in today’s competitive jobs landscape, staffing issues are a top priority for companies, especially as the “big resignation” hovers over their heads.

One of the main competitive factors candidates consider when selecting their next employer is the overall benefits package of a potential business. The value of working with a PEO means having access to a wider and more robust range of high-quality, affordable benefit options. Through a PEO relationship, small businesses can tap into purchasing power that is usually only available to much larger businesses with more resources. Some benefits that PEOs can offer include health insurance, disability insurance, employee assistance and discount programs, 401 (k) plans and others. Beyond these, a PEO can also provide online access to payroll reports, pay stubs and employee W-2 forms without requiring the employer to purchase and configure the infrastructure to provide these services. to its employees.

Employee-centric benefits and services

PEOs are known to be synonymous with outsourcing key HR functions. However, an added benefit of adopting a PEO extends beyond these HR administrative tasks. PEOs can help employers put in place policies and programs that reflect a commitment to social responsibility that today’s employees expect from the companies they work for. As companies are inundated with questions about how to prioritize diversity, equity and inclusion, whether to institute flexible work options, how to support the mental health of their employees, and more, there is no t has never been so useful to have a dedicated HR consultant on your premises to provide you with HR advice and expertise on these constantly evolving topics. In addition, PEOs may also offer Employee Assistance Programs (EAPs), which can provide valuable resources and support to employees, including counseling, resolution of medical claims, stress management, health support. mental health and support for physical well-being.

Increased profitability

According to a 2019 survey conducted by the National Association of Professional Employers’ Organizations (NAPEO), 16% of businesses that use PEOs are more likely to report increased profitability compared to those that do not work with a PEO. As small businesses typically have limited resources, outsourcing various timely tasks such as payroll, benefits, and legislative compliance allows them to refocus their attention on the results and growth of their business. Rather than taking the time to research and master these complex topics, clients can turn to the expertise of the PEO and adjust their focus to focus on a long-term strategy. Additionally, PEOs help employers keep abreast of the latest government regulations impacting businesses to help them reduce risk and help them comply.

Additionally, PEOs can conduct in-depth assessments designed to help small businesses maximize growth and minimize liability, allowing clients to better understand where development and expansion opportunities lie for the business.

Cost savings

For various reasons, a business working with a PEO is more likely to save on general HR administration costs and employee benefits. In fact, companies working with PEOs saved 27% on the costs associated with HR services such as payroll and benefits, according to a recent study by NAPEO,

Many small business clients are unlikely to have access to the benefits of large corporations, ranging from health insurance to retirement savings plans, education benefits, and more. It is important to note that a PEO not only gives small businesses access to these plans, but also has the advantage of a larger network and greater purchasing power compared to what a single client. This power comes with substantial savings in plan offerings, as companies that work with a PEO typically experience lower group insurance costs given their larger number of employees. The previously mentioned NAPEO research also found that the average cost savings from using a PEO are $ 1,775 per employee, a significant number for many small businesses.

In some cases, PEOs may be able to offer a lower state unemployment insurance rate to their clients because their employees are listed under the federal and state PEO identification numbers for the purposes of pay..

In addition, PEOs can help control the labor costs associated with accounting expenses. For example, many small clients may find the value of a PEO by having access to a dedicated financial or labor infrastructure, as many small businesses do not have the budget for these crucial resources in-house.

Longevity of the company

PEOs provide small businesses with access to the benefits of large businesses at reasonable costs. Providing competitive advantages to employees can help customers not only attract potential employees, but also increase overall retention rates. According to a NAPEO survey, companies that use a PEO have 10-14% lower employee turnover rates than others and are 50% more likely to stay in business.

As the regulatory landscape continues to evolve in response to the COVID-19 pandemic, PEOs can offer the expertise employers need to help them comply with the latest regulations and minimize the risk of costly fines. Working with a PEO vendor who has compliance expertise is essential to avoid failing to comply with all applicable state and federal tax and labor laws and the potentially costly consequences.

To ensure clients are better protected and prepared, make sure they are working with a PEO who has the knowledge to resolve compliance issues and the ability to support them in developing systems and processes that facilitate compliance, from monitoring changes to resolving critical issues. compliance deadlines.

Efficiency at work

As an accountant, it is essential to help clients save money and increase both their bottom line and the overall efficiency of their business. By working with clients to assess their needs and how they could be more streamlined overall, you can help them understand if a PEO could help them shift their payroll, capital management and human resources efforts to the next level. higher level, which translates into happier employees, better benefits, and significant cost savings, and business sustainability for longevity.


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