The professional employer organization (PEO) industry is thriving nationwide, providing services to 175,000 small and mid-sized businesses employing 3.7 million people from coast to coast.
The ability to offer competitive employee benefits while staying compliant with related employment laws is a major reason why companies enter into PEO partnerships. And as noted by the National Association of Professional Employer Organizations (NAPEO), such businesses grow 7 to 9 times faster, have 10 to 14 percent lower staff turnover, and are 50 percent less likely to go out of business than their non-PEO-affiliated competitors.
To zero in on three benefit-related services offered by a PEO:
You can offer a broader range of benefits to attract and retain top talent.
NAPEO has reported that 40 percent of businesses that use PEOs are able to upgrade their employee benefit packages as a result. For instance, when you work with a PEO, you can typically move beyond offering basic health insurance to additional supplemental and voluntary benefits. This helps you draw in desired talent in a competitive market, as well as keep your top-performing employees on your team.
As benefit plan sponsor, your PEO will relieve you of related responsibilities including negotiations, enrollment and administration.
The costs of a comprehensive, compliant benefits program can be prohibitive and related administrative tasks overwhelming. Thanks to your PEO’s group purchasing power, you can still provide competitive benefits at lower costs than you could on your own.
- When you partner with a PEO, you enter into a co-employment agreement. You regain ownership and control of your company and team, while your PEO seamlessly becomes the employer of record. Your PEO pools all its employees from various companies together, so those who work for smaller organizations have benefits comparable to those at much larger firms.
- Your PEO handles routine, redundant administrative tasks. This frees up your time to focus on core business competencies and growing your bottom line.
Your PEO will assist with benefit-related compliance issues.
Even a single compliance claim or violation can result in devastating financial consequences, as well as drain staff time, damage morale, and even stain your brand image and company reputation.
- Compliance covers a broad range including tax reporting, unemployment and workers’ compensation insurance, the ACA, the ADA, FCRA, and equal employment opportunity issues. PEOs have experts on staff who focus solely on these areas, keeping up with ongoing changes, and positioning your company to respond to them.
Considering PEO Services? Let’s Connect!
Of the more than 900 PEOs in the United States, only about 5 percent are accredited by the Employer Services Assurance Corporation (ESAC), to ensure the highest level of client service. Lyons HR is proud to have earned this distinction, as well as being the first PEO to earn IRS certification, ensuring demonstrated financial security. To learn more about the benefits of a PEO partnership, contact us today.