Advantages of PEO


How a PEO Benefits Both the Employer and Employees

Much has been written and spoken about the value and advantages of PEO, or a Professional Employer Organization. As an integrated human resources entity, a PEO lifts a heavy burden from small- and medium-sized companies and organizations by assuming the bulk of their human resources tasks, from payroll, workers’ compensation, tax filing and benefits, to workplace safety and overall HR guidance and administration.

The advantages of PEO are numerous — chiefly the fact that they benefit both the employer, as well as the employees of a company or organization. The bond forged between the PEO, the client company and its employee results in a variety of advantages for client companies and their workers.

How Does a PEO Benefit the Employer?

Companies and organizations that work with a PEO soon discover the myriad benefits of the relationship. First and foremost, a client looks to a PEO to relieve it of the often burdensome, expensive and time-consuming tasks associated with human resources. When clients sign on with a PEO, it’s the PEO that assumes a range of ‘non-core’ administrative activities, allowing the firm to focus its attention on its core competencies and associated efforts, from planning and production to sales and marketing. The administrative tasks assumed by the PEO, which can include everything from payroll and workers’ compensation to benefits administration, relieve the client of these work-intensive aspects of running a business or organization. Some PEOs even help their clients by providing their expertise in strategic human resources decisions, which can be of considerable help to company managers already burdened by core tasks.

There are a number of other ways in which an employer can benefit from working with a PEO. These include:

  • PEOs can provide access to a variety of employee benefit solutions; this helps companies to attract, hire and retain the best talent
  • Since working with a PEO constitutes a shared responsibility arrangement, a relationship with a PEO can help to mitigate certain employment-related risks
  • Inherent in the PEO relationship is having access to scalable technology and infrastructure that would not ordinarily be available to a company or organization going it alone
  • Working with a PEO yields employee-related cost stability; this takes the burden of unanticipated costs off the company or organization

How Does a PEO Benefit Employees?

When current and prospective employees become aware that their company or organization is working in tandem with a PEO, it comes as a relief, and it’s seen as a positive attribute. Employees crave financial security, and certainly access to a range of benefits, chiefly sound health care coverage. Beyond that, they look for an employer who will help to provide for their future — namely assist them to put money aside with an employer-sponsored savings plan such as a 401(k). Data clearly shows that employees who are satisfied with their compensation, benefits and other perquisites are more productive. This is where a PEO can be a real benefit to employees — by administering benefits and long-range savings plans that give employees a sense of stability right away, and down the road.

The PEO Relationship Is a Win-Win for Employers and Their Employees!

If you’ve ever pondered the prospect of working with a PEO, now is the optimal time to give the idea serious consideration. Now more than ever businesses and organizations are looking to shed ancillary costs and focus more on their core competencies. This includes looking for ways to free themselves of the burden and administrative hassles concomitant with human resources, payroll and benefits management. Expert PEO will work with you to outline the myriad benefits to your company or organization and your employees, and design a plan that’s tailored to both your short-term and long-range goals. You’ll be pleasantly surprised to learn how working with a qualified PEO will solve many of the human resources challenges you face today, and free you up to focus on keeping your customers or clients satisfied. Call us today for a risk-free consultation about the many benefits of a PEO to your company, and to your most important asset — your loyal employees.