Many businesses across the nation use PEOs, or Professional Employer Organizations, to provide necessary HR services. While the strategy is often used by larger corporations, small businesses with between five and 100 employees can benefit immensely from outsourcing their HR needs to a PEO.
Using a PEO eliminates the need to hire a full-time accounting staff, lowering costs for small business owners. It also allows owners to focus on the day-to-day running of their business rather than having to deal with complicated HR paperwork and compliance issues. In fact, a study by the National Association of Professional Employer Organizations showed that businesses that use a PEO experienced the following astounding statistics:
- 7-9% faster growth
- 50% more likely to stay in business
- 10-14% lower employee turnover
Not only can using a PEO benefit a small business in the long-term, but it can have many positive short-term effects as well. At NetPEO, we help to match you with the PEO that best fits your company’s specific needs.
Benefits of Using a PEO
NetPEO has access to a nationwide network of PEOs that can assist companies in a variety of areas. For new and small business owners, this can provide immense relief from the pressures of complicated HR needs.
Employee Benefit Packages
One of the ways that a PEO can help is by providing employee benefits. Since PEOs often serve many companies through the co-employment model, the pool of members paying into the benefits package is larger, allowing small businesses to have access to the same quality of employee benefits as larger corporations. This can lead to happier employees, which in turn lowers turnover and saves companies money on the cost of constant employee training.
PEOs employ accounting experts who have years of experience handling payroll matters. Not only does this free up business owners to focus on the growth and development of their business, but it lowers the chance of any costly errors in payroll management. The PEOs in NetPEO’s nationwide network have more than 200 years of combined experience in the industry.
One of the biggest headaches for many small business owners is figuring out how to navigate complex local and federal regulations. By outsourcing your company’s HR needs, you allow the experts at a PEO to ensure that your business is in compliance with all relevant labor laws. This will help your business avoid any potential lawsuits down the road.
General Employee Administration
PEOs can handle a company’s employee administration services. These include, but are not limited to, the following aspects of employee management:
- Recruitment services
- Employee onboarding and training
- Development of organizational philosophy
- Development of employee handbooks
- Development and enforcement of HR policies
Workers’ Compensation Claims
Many businesses are required to have workers’ compensation insurance to provide for employees who injure themselves on the job in the course of their duties. By using a PEO, you can ensure that your company is in line with the law and is able to handle any claims that may arise.
When outsourcing your HR needs to a PEO, it is often necessary to engage in a co-employment arrangement. For some small business owners, this may be a scary proposition. But not to worry! In a co-employment scenario, you retain control of your company and employees.
Being in a co-employment relationship simply means that the PEO is an employer of record for your company’s employees. This allows them to legally provide services to those employees and handle private information like payroll data and employee benefits.
Using NetPEO to Broker Your PEO Experience
NetPEO is in the unique position of being a PEO brokerage service. We meet with you to discuss your company’s specific needs and then match you with a few PEOs in our nationwide network. Once you have been matched, you can select from our partner PEOs to find the one that best fits your business.
What Customers Say
Our customers love the NetPEO experience. In fact, we have the highest client retention rate in the industry, at 95%. In client satisfaction surveys, 100% of our customers have said that they are either very satisfied or extremely satisfied with the services our PEOs provide.
Why do we have such a high rate of customer satisfaction? This is largely down to our commitment throughout the PEO process. We stay with our clients throughout the entirety of the co-employment relationship and regularly check in to ensure that they are happy with the services they receive. Plus, with the more than two centuries of experience that our networked PEOs have in the industry, we are able to predict and prevent potential problems.
Outsource Your HR Needs Today
Though all businesses can benefit from outsourcing their HR needs to a PEO, small businesses with between five and 100 employees are especially poised to have a positive boost. If you are the owner of a small business, start the outsourcing process today by either filling out the information on our contact page or calling us at (678) 376-1212. We offer a FREE, no-obligation initial consultation to learn more about your business and its requirements before matching you with the perfect PEO for your needs.