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Published on May 17
A PEO can help meet the needs of your small business
The rebound of the small business sector has led to an increase in the use of human resources outsourcing in the wake of complicated regulations such as the ACA.
Serving approximately 156,00 employers and representing 2.7 million work site employees, a professional service organization can help your small business grow and succeed.
Why more small businesses are working with PEOs
Small businesses that use PEOs grow 7 to 9 percent faster, have 10 to 14 percent lower employee turnover, and, most importantly, are 50 percent less likely to go out of business than those who do not utilize HR outsourcing services. The chief reasons for this are obvious.
Business owners report that among their greatest employment related concerns are taxes, healthcare, and hiring. These are areas that require a high level of knowledge and the investment of significant time to master. These are also areas that align perfectly with the offerings and expertise of PEOs, so it’s no surprise that more owners are turning to HR outsourcing to keep them compliant and able to offer better benefits for their employees.
As your workforce grows, it can become more economical to outsource HR functions. Spending time on issues like FMLA, training, disciplinary actions, and hiring practices can significantly detract from the time you should be spending on growing your business. Your PEO partner can keep you compliant in employment-related matters, lessening your risk of lawsuits and penalties.
How a PEO can help your business grow
A PEO can handle the HR administrative tasks like onboarding, off boarding, providing an organizational chart, administering health benefits, payroll, and paid time off. PEOs will keep you compliant with federal and state employment laws and handle things like proper termination documentation and worker’s compensation claims and audits. This reduces your workload and takes some HR and labor law liability off your shoulders, allowing you to direct your time and energy to other areas.
One of the biggest disruptions to your business comes as a result of employee turnover. A PEO can help you craft employee retention programs and strategies to prevent turnover, including working on employee engagement activities and offering training opportunities for employees. Employees consistently rank medical insurance, retirement plans, and other benefits programs as a top priority when deciding to accept or stay in a position. The Fortune 500-quality benefits that your PEO partner can offer to your employees is another vital component of retaining your existing talent.
How a PEO benefits your employees
Working with a PEO can provide your employees access to high-quality benefits at affordable rates, including health, dental, and vision, 401K plans, life insurance, and more. These benefits are administered by the PEO, freeing you and your management staff up to conduct other business-related activities.
Additionally, these benefits are often offered at better prices than a single small business could negotiate on their own, meaning that coverage is more affordable for your employees. Your PEO partner will ensure that the benefits offered keep you compliant with current ACA-related regulations.
Also, your PEO can help you craft training programs and employee guides and handbooks. These measures allow you to create a more highly trained workforce and allow your employees to take grow in their skills and commitment to your company.
Explore the many other benefits of working with Sheakley
Learn more about Sheakley’s PEO team and contact us for your free consultation today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.