PEO Explained and Why Hire One
January 16th, 2018
What is a PEO
We get asked, a lot, what is a PEO and what exactly do you do?
A PEO is a Professional Employer Organization. As a PEO, we help small and mid-sized businesses by taking care of a lot of their needs. This includes:
- Payroll Services
- Employee Benefits
- HR Compliance
Overall, we exist so business owners like you can run and enjoy their business, while we take care of all the other details. After all, as a business owner, you started your company because you had a passion for something and providing a service. But you probably did not expect to also have to run payroll, benefits, hiring, managing taxes and compliance and more. These things can get you into the weeds and take away the joy and enthusiasm you have for your company and employees.
Why a Hire a PEO
Hiring a PEO is really a no-brainer for most businesses. Here are some advantages when it comes to hiring a PEO – beyond taking a lot of work off your plate:
- Annual median revenue growth for PEO clients is twice that of comparable non-PEO clients
- Expected annual median revenue growth for PEO clients is 40 percent greater than that of comparable non-PEO firms
- PEO client firms are 16 percent more likely to report an increase in profitability
Overall, a business that uses a PEO also tends to be more profitable and experiences faster revenue growth.
PEO Benefits to Employees
The benefits of using a PEO goes beyond just your business financial books and the old corner office. Instead, a PEO also greatly helps your most valuable assets – your employees. According to a recent survey from NAPEO:
Compared to employees working in businesses that are not PEO clients, employees working in businesses that are PEO clients are significantly more likely to report that their employer:
- Demonstrates a commitment to them as employees
- Has good hiring practices
- Has good HR policies and practices
- Does a good job of designing employees’ jobs
- Provides employees with good training and development opportunities
Employees of PEO clients also report significantly higher scores on key measures related to employee satisfaction and confidence in company management:
- Levels of employee engagement
- Intention to stay with their current employer until retirement
- Belief that the employer is taking the right steps to be competitive
- Trust that employer is supporting employees in delivering excellent customer service
- Confidence in the employer’s approach to growing the company
Again, want more engaged and satisfied team members? Then you should consider a PEO.
Looking for a PEO?
If you are exploring hiring a PEO or just have questions, give us a call at 303-221-0558 or contact us. We are more than happy to help you get back to running your business instead of it running you.