Human resources can cause big headaches for small businesses. Between the time, energy, and resources that go into HR, it’s not too surprising to see Small and Midsize Business (SMB) leaders worry about how they will handle this important function of their organization. But what if there was a way for your company to remove this burden from your day-to-day activities, and instead focus your time and energy on growing your business? This is where a PEO can help your company.
You might be thinking to yourself – “What is a PEO?” A Professional Employer Organization (PEO) is a firm that allows small and medium-sized businesses to outsource their HR management responsibilities. These services can include HR, payroll, benefits, and risk management just to name a few.
While there are many benefits to working with a PEO, a recent report from the National Association of Professional Employer Organizations (NAPEO) uncovered some eye-opening statistics about the PEO industry. Not only did they find that the industry is growing, they also found the following four stats on the value PEOs create for their clients.
Growing the business is the main concern of every owner and company leader. It is also the biggest challenge most companies face. Partnering with a PEO and allowing them to handle your human resources needs allows you to focus more on high-value activities that help grow your business. As uncovered in the NAPEO report, PEO clients grow 7 to 9 percent faster. When you can focus all of your time and attention on the mission of your business, growth is much more achievable!
Recruiting top-talent can be stressful for small business leaders, especially when competing against much larger companies. But retaining that talent over time can prove to be an even bigger challenge for SMBs. Partnering with a PEO allows you to offer Fortune 500-level benefits that allow your company to be more competitive while both recruiting new employees and retaining your current staff.
Not only can PEOs provide companies with access to competitive benefits, but they can do it at lower costs than more basic HR administrative services. That extra savings can go a long way to growing your business!
When taking the first three facts into consideration, this last one doesn’t seem as surprising. Greater growth, lower turnover (not to mention less costs on having to re-fill roles), and saving a considerable amount on HR administration costs set up SMBs for long term success. It’s no wonder why the PEO market is stronger than ever before.
As a small business, there are many options open to you when approaching human resources. Working with a professional employer organization may not be the right fit for everyone, but knowing they’re out there and the added benefits your company can have by partnering with one is good to know. After all, who wouldn’t want better benefits at a cheaper price!
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