Forbes recently reported that 80 percent of small businesses fail within the first two years. That’s a sobering statistic, to say the least. Of course, you won’t be one of them, as long as you continue to boost your competitive edge, be innovative and deliver excellent customer service.
A professional employer organization, or PEO, can help ensure this happens by freeing you up from your most time-consuming HR and related tasks, so you can concentrate on running your business.
PEOs Work for Small Businesses
The National Association of Professional Employer Organizations (NAPEO) surveyed 71 small businesses that partnered with PEOs, and 30 that did not. Their findings proved that companies working with PEOs:
Experience higher revenue growth.
During the 2015-2016 time period, they realized double the median revenue growth as compared with companies who didn’t partner with PEOs. And, they were 16 times more likely to see an increase in their profitability.
Feel more equipped to handle business challenges.
Revenue generation, recruitment and raising capital are top concerns for small business owners. But companies working with PEOs were less likely to rank them as “major” or “moderate” worries compared to non-PEO businesses.
Have happier employees.
People whose employers work with a PEO are more satisfied with the jobs and feel more confident that their company will follow good hiring practices, implement strong HR practices, support good customer service, and show a solid commitment toward their workforce.
Additional benefits of working with a PEO include:
More time to focus on your business.
As noted by Entrepreneur, up to 40 percent of a business owner’s day is spent managing HR issues. Through its co-employment relationship with your company, your PEO takes care of these myriad administrative tasks – while you remain the boss and have the final say in managing your team.
PEOs can pool their clients’ employees to secure better benefits at lower costs than most small companies could obtain on their own. This applies to health insurance and additional coverage such as dental and vision plans, as well as 401(k) plans, retirement plans and other valuable offerings.
Up-to-date compliance knowledge.
Because PEOs focus solely on HR administration, they constantly stay current on market changes and trends in key areas including insurance, workers’ comp, and employment laws and taxes. Consider this: More than 33 percent of small businesses are fined each year for making payroll mistakes. Your PEO has you covered when it comes to employment-related government compliance and all the paperwork involved.
A better benefits package enables you to attract top candidates to your company and remain with you over the long term.
Partner with Lyons HR!
As an ESAC-accredited PEO, Lyons HR provides full-service HR management including employee benefits, risk management, workers’ comp administration, payroll and tax compliance and more. For the success of your small business and for your own peace of mind, learn more about working with a PEO by contacting us today.