Have you thought about working with a professional employer organization (PEO) to handle some or all of your HR tasks and duties?
The most recent data from the National Association of Professional Employer Organizations (NAPEO) shows continued growth in the PEO business in recent years.
- In one of NAPEO’s most recent surveys, 85 percent of hiring industry executives predicted an increase in their number of PEO worksite employees – so it looks like this upward trajectory will continue as we move through 2020 and beyond.
What’s All the Excitement About?
Small to mid-sized businesses turn to PEOs in order to save time and money, increase operational efficiency, and ensure that they remain compliant with ever-changing labor laws. When you contract with a PEO, you enter into a co-employment arrangement, where your PEO is the employer of record for your staff, while you retain overall control. And because PEOs can tap into their larger network of clients, you’re in a position to offer better benefits and keep your company competitive, even when vying against much larger competitors.
So it should come as no surprise that PEOs service between 156,000 and 180,000 small and mid-sized companies, employing between 2.7 million and 3.4 million people.
- NAPEO notes that in each of the last 30 years, its industry has added an average of 100,000 worksite employees and 6,000 new partnering companies.
To drill down on some of those reasons to invest in a PEO partnership, take a more in-depth look at:
- Providing competitive benefits: NAPEO has reported that 40 percent of businesses that use PEOs are able to upgrade their benefit packages as a result. When working with a PEO, you can often move beyond the health insurance basics to supplemental and voluntary benefits that will draw talent your way and help you keep the top performers you already have on your team.
- Improving your work environment: PEOs have on-staff specialists in risk management and safety, as well as qualified consultants for overall best HR practices. Where are your current shortfalls when it comes to the best possible candidate or employee experience? Maybe it lies in offering better training, crafting stronger job descriptions, or developing or improving your employee handbook. You have the option to outsource as many HR functions as you want, in order to keep your company on the growth and improvement track.
- Resting assured that your business is compliant: Even a single compliance claim or violation can drain your company of money, time, and even your hard-earned reputation. Compliance covers a broad range including tax reporting, unemployment and workers’ compensation insurance, the AA, the ADA, the FRCA and equal employment opportunity issues. The entire alphabet soup – which may look different tomorrow or next month than it does today. PEOs offer experts who laser focus on this area, keep up with ongoing changes, and poise your organization to respond to them.
Want to Learn More?
To learn more about how a PEO partnership might be the right strategic decision for your business, contact Lyons HR today.