Improved growth with a PEO fact with lightbulb graphic

The Value of Using a PEO

by Andrew Sowell, on October 08, 2019
Professional Employer Organizations, or PEOs, handle human resources needs for small and medium sized businesses. Everything from payroll and benefits to compliance and workers’ compensation can be outsourced to a PEO firm.  Entrepreneur magazine called PEOs the best-kept secret of successful businesses because of the huge advantage they provide.
Here’s how partnering with a PEO and outsourcing your HR can empower your business and increase its growth:

Growth and Profitability:
The reality of starting and maintaining a business is that there’s more to it than just executing an idea. Laws are constantly changing, workforce trends are evolving, and technology needs to be consistently updated, just to keep up. Many small and mid-sized businesses don't have dedicated employees to handle these things, and it takes time away from owners who are there to drive the business forward.
From an economic standpoint, PEOs are growth accelerators. Just by outsourcing human resources, businesses grow 7 – 9% faster than those that don’t, with a 27.2% ROI. Businesses that use a PEO were also 16% more likely to report an increase in profitability.

PEOs help drive growth and profitability because they are specifically designed to meet every HR need, and allow owners to re-shift their focus to what they’re best at; what matters most to their employees, and why they started their businesses in the first place.

Empower Your Business:
For small businesses, human resources tasks can be both daunting and seemingly endless. Mounting compliance concerns, paperwork, employee onboarding, and other administrative services can be burdensome and everything needs to be handled expertly to keep your business open and running. If you want to institute a new benefit, like a 401(k), or need a legally sound employee handbook, you might not even know where to start. PEOs can empower your business and take it to the next level by handling those services for you. Through a relationship with a PEO, owners and managers can remain focused on growing the business —all while receiving a significantly higher level of dedicated human resources services – and a 35% savings on HR administration costs. That would only be possible through hiring additional HR staff or by using a PEO.   

Another way a PEO can empower your business is through co-employment. Because PEOs work with thousands of employees from hundreds of businesses, they can provide higher-quality insurance plans or benefit packages at lower rates to your business.  By offering Fortune 500 level benefits, a PEO helps you attract and retain top talent, and is a main reason businesses that partner with a PEO experience a 10% lower turnover rate.

The facts are simple: businesses that work with PEOs grow faster and are less likely to fail. This is because PEOs tackle the complicated HR functions so you can focus on the ideas and innovation that drive growth and profitability. Ready to put a PEO to work for your business? Contact LandrumHR to find out what outsourcing HR can do for you.
 
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Andrew Sowell

Andrew Sowell currently serves as the Regional Director of Business Development for LandrumHR. He received his degree in Business Marketing from Florida State University and has an extensive background helping business owners solve problems that impact the bottom line.  His passion is consulting with business owners and highlighting areas where the company can save money, increase profits, improve employee engagement, and protect the business from compliance issues.

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