If you are the owner of a small business or a business just starting out, you might be worried about the cost of hiring a PEO (Professional Employer Organization). However, most business find that using a PEO to outsource their HR requirements is actually a net gain rather than a net cost. This is because the price of a PEO’s services are often less than the cost of hiring a complete HR staff to perform the necessary duties in-house.
What Can a PEO Do For a New Business?
PEOs can relieve a new business owner from the pressures of HR haggles and allow them to focus on the day-to-day operations of the business. With NetPEO, a new business owner can choose from a nationwide network of PEOs and pick the one that is right for their business. Services offered with NetPEO’s partner organizations include:
- Recruitment: ensuring that your business acquires employees who are qualified and likely to stay with your company over time.
- Employee Administration: through office training, creation of employee handbooks, and helping you develop the structure of your organization.
- Compliance: keeping your new company in line with complex federal and state regulations.
- Workers’ Compensation: working through workers’ compensation claims as they arise.
- Payroll: saving you the time and haggle of dealing with accounting practices.
- Employee Benefits: giving your employees access to a wider and often better pool of benefits through the co-employment relationship.
In addition to all of these services, using a PEO can give a new or inexperienced business owner peace of mind that HR and accounting services are being handled by highly specialized professionals. Plus, with NetPEO, the business owner is matched with several PEOs that meet the needs of the new business through our industry-leading nationwide network.
How Much Does a PEO Cost?
PEOs typically are priced either on a per-employee, per-year basis or as a percentage of the business’ overall payroll costs. This can be a good thing for smaller or newer companies, as the price of the PEO’s services will scale with the size of their business. In other words, the dollar amount may be significantly cheaper for smaller companies. Prices usually fall within the following ranges:
- Per-employee, per-year rates: $900 to $1500
- Percentage of overall payroll rates: 3% to 8%
However, for smaller companies with fewer than five employees, some PEOs may offer a flat rate as low as $150 per month, according to Entrepreneur.
These rates are for wholesale services when the business owner is looking to hire a PEO for the full range of HR and accounting needs. However, one advantage that NetPEO offers is the ability to pick individual services from PEOs in an “a la carte” fashion. Though the best value is often to hire a PEO for the work of a whole department, this a la carte method may especially benefit newer and smaller businesses.
Can Your Business Benefit From a PEO?
Almost every business can benefit from a PEO, regardless of its size. For newer and smaller companies, however, the benefits are astronomical. NetPEO has helped many business with between five and 100 employees, and we have the highest client retention rate in the industry at 95%. Not only that, but 100% of our clients report being satisfied or extremely satisfied with the services they received from NetPEO. Why are they so satisfied?
- Using a PEO offers a larger employee benefit pool, giving small business access to the benefits of larger companies.
- Employees with better benefits tend to stay at the company long-term, reducing harmful employee turnover rates.
- With a PEO taking care of the tedious work, owners can focus on building and growing their business.
NetPEO is set apart by its ability to match clients with PEOs across the nation, negotiate with those PEOs on behalf of the client (saving the client a myriad of phone calls and headaches), and offer the best options for the business owner to choose. Once the business owner decides on a suitable PEO and begins a co-employment relationship, NetPEO stays connected with both parties to ensure that the client remains satisfied and any problems are quickly addressed.
How Do You Find The PEO That Is Right For Your New Business?
NetPEO is here to help business owners find the perfect PEO for their needs. If you are looking for a solution to outsourcing your HR needs, fill out the form on our contact page or call us today at (678) 376-1212. Our brokers are waiting, and so is your business.