The Top 5 Reasons to Partner with a Professional Employer Organization (PEO)
It’s no secret that business is changing. Changes in technology, a shifting economic outlook and a rapidly-evolving regulatory environment all call upon today’s businesses to be flexible, responsive and always ready to adapt to new realities. For an increasing number of businesses, working with a Professional Employer Organization (PEO), is becoming an indispensable way of making sure that their companies are ready for any eventuality – and well positioned to take advantage of any opportunity.
Here are a few reasons why a PEO can be your company’s best friend:
- A PEO can let your business focus on what it does best.
HR functions aren’t a profit center for your company. So why should they be the recipient of a large measure of its time, attention, and resources? Repetitive, daily HR tasks consume resources your company could use in advancing its core-business functions and driving revenue growth. A PEO lets your company maintain its focus on tasks that matter—strategy, product development, sales and marketing, and other endeavors that contribute to profitability and institutional strength.
- A PEO can help you strategically build your workforce and grow your business.
The bottom-line objective of HR is to engage and motivate your workforce. Employees with access to professional HR services and expanded benefit offerings are more effective, efficient and loyal. An experienced PEO partner helps you attract and retain top talent, and that can be a powerful competitive advantage. Research shows that companies who partner with a PEO grow at an average of 7-9% faster than their counterparts who handle the burden of HR on their own.
- A PEO can help you safeguard your business.
Risk management is one of the most difficult, and most inevitable, issues a business can face. Working with a PEO means they don’t have to face it alone. A PEO partner will share risks and responsibilities, relieving the client from some considerable employer risks and complex reporting requirements (such as payroll tax reporting). A PEO enables Workers’ Compensation risks to be amortized across a large labor pool, minimizing the adverse effects of any single claim. And a well-run PEO will also guide your company through increasingly complex employer compliance requirements and, as a responsible party, will be an advocate for your company in resolving HR issues.
- A PEO can help you contain costs.
By leveraging large employee pools when purchasing products in large quantities, PEOs can pass savings onto their clients. Benefit offerings and Worker’s Compensation insurance, for example, are two products where PEOs are well positioned to provide companies with significant—and sometimes critical—savings. The size of the PEOs employee pool and its bulk buying power also enable access to a broader range of benefit offerings, and help companies maximize their benefits investment while holding costs in check.
- A PEO can help you attract and retain top talent.
In an era of nearly full employment, competition for top-performing talent is fierce in nearly every industry—and that raises employee expectations when it comes to HR and benefits offerings. A top PEO always stays ahead of these trends, calibrates services and benefits offerings to meet evolving expectations, and enables client companies to deliver the HR experience that premium talent demands. And a PEO helps “level the playing field” between small- to mid-sized companies and major corporations by providing a similar suite of benefits that enables them to attract and retain top talent.
In the coming weeks, we will explore each of these five key PEO advantages in greater detail, illustrating the considerable benefits to be achieved through a well-considered partnership with a reputable PEO. As one of the top Professional Employer Organizations in the nation, Trion Solutions is committed to creating and highlighting advantages for our client partners, and we have seen firsthand the big difference a PEO can make in the fortunes of growing businesses.
To learn how Trion fits your business, contact us today.