How Do Small to Medium-Sized Companies Benefit from Working with Lyons HR?

Why work with a professional employer organization (PEO) like Lyons HR? After all, you’re perfectly capable of running and growing your business without ceding any of that hard-earned control to an outsider, right?

Of course you are. But joining forces with a PEO is not about losing control. In fact, the opposite is true. When you work with a PEO, you outsource much or all of the work, time and energy involved in critical HR tasks to a trusted business partner, while retaining control over your company, your employees, and your day-to-day operations. And, you’re freed up to focus on strategic initiatives and business growth.


All this happens through a co-employment relationship with a PEO, which becomes the employer of record for your employees. In doing so, your PEO assumes not only HR tasks and duties, but also tax, liability, compliance and other employment responsibilities, so you don’t have to worry about them. And because PEOs pool their client employees together, they can provide you and your employees access to highly competitive benefits that would otherwise be out of your reach.

The bottom line is greater profitability, talent management and growth.

A recent whitepaper published by the National Association of Professional Employer Organizations (NAPEO) summarizes these benefits. They include:

  • Annual median revenue growth of PEO users is twice that of comparable non-PEO firms.
  • The anticipated median revenue increase 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, and
  • PEO users are significantly less likely than their non-PEO counterparts to worry about their ability to handle such key business challenges as successfully hiring employees, increasing revenues or raising capital funding.

Compared to employees working for non-PEO businesses, those who work for PEO clients are significantly more likely to report that their employer:

  • Demonstrates a commitment to them as employees (the average response in a NAPEO survey was 8 percentage points higher).
  • Has good hiring practices (8 points higher).
  • Has good HR policies and practices (5 points higher).
  • Does a good job of designing jobs (4 points higher).
  • Provides good training and development opportunities (4 points higher).

PEO client employees also report significantly higher scores on these key measures:

  • Engagement (5 points higher than those who work for non-PEO companies).
  • Intent to stay with their current employer until retirement (8 points higher).
  • Belief that their employer is taking the right steps to stay competitive (8 points higher).
  • Trust that their employer is supporting them in delivering excellent customer service (7 points higher).
  • Confidence in their employer’s approach to growing their company (5 points higher).

It’s important to choose the right PEO.

Per NAPEO, there are 487 PEOs in the United States. How do you choose the right one? Narrow your choice down to these criteria:

  • Your PEO should be a NAPEO member.
  • Look for a PEO certified by the Internal Revenue Service (IRS). This confirms a PEO can pay federal employment taxes under its Employer Identification Number (EIN) and requires that the PEO assume sole liability for wages paid to worksite employees.
  • For the cream of the crop, look for a PEO accredited by the Employer Services Assurance Corporation (ESAC). This is the gold standard for best practices and financial reliability, a status earned by only 5 percent of all PEOs.

We’d love to tell your more. As you consider your PEO plans, reach out to Lyons HR today.