Read More

How Professional Employer Organizations (PEOs) Boost Business Growth

Growing a business is a labor of love. It requires a lot of time, dedication, and focus.

But in order for a company to obtain a true competitive edge, they have to decide how they want to set themselves up for long-term growth and success. A great first step to achieve this is by executing a company growth strategy.

Businesses that are currently handling all HR, compliance, and employee benefits in-house, should consider partnering with a Professional Employer Organization (PEO). PEOs provide support in the following areas: talent acquisition, payroll, benefits administration, risk management, and compliance adherence. A PEO gives the company some much needed time back by allowing them to outsource their most tedious and arduous operations. A partnership would open the door to new opportunities and allow a business to grow faster with lower turnover.

Here are some ways to get started:

Core Competencies

By focusing on core competencies, a business can adapt to changing circumstances. A business should start thinking about their strengths and new ways to innovate around their core competencies. What sets them apart? Why do customers choose them? These are important things to keep in mind when devising a growth plan.

In addition to core competencies, businesses should take time to reflect on the following questions:

  • What are their goals?
  • Would they like to enter any new markets?
  • What impact do they want to make?
  • What are three things they shouldn’t change?
  • What are three things that should be changed?

It can be hard to focus on strategy when bogged down with the day-to-day activities of running a business. By establishing a collaborative relationship with a PEO, a business will be able to save time, money, and effort.

Meaningful Company Culture

Don’t underestimate the impact of a positive work culture on growth and long-term success. Great employees want to be part of a winning company culture. From sound employee policies, help with training, advice on retention, and robust benefits and HR consultations, a PEO can focus on company culture while a business can take care of other essential tasks.

Employee Attraction & Retention

Invest in talent. The people a business hires have a direct impact on growth and success.

A PEO helps prevent a business from making hiring mistakes and creating other HR headaches that could affect their growth strategy. In addition to dedicated HR support, PEOs have an experienced team of recruiters to help a business attract and retain top talent.

PEO’s provide expertise in the following areas:

  • Writing job descriptions
  • Developing hiring strategies
  • Sourcing and screening candidates
  • Recruiting program evaluation
  • Developing hiring strategies
  • Administering selection assessments
  • Employer brand audits

In today’s tight job market, employee retention is more important than ever. Businesses that plan to expand need a strategy in place for reducing turnover. PEOs offer a wide array of services and hands-on expertise when it comes to employee attraction and retention, including providing companies with access to a wide array of benefits and services that their employees otherwise wouldn’t receive.

PEO Clients Growth & Success Stats 

Studies show that businesses in a PEO relationship have higher growth rates, lower turnover rates, and are less likely to go out of business.

According to the National Association of Professional Employer Organization (NAPEO):

  • Small businesses that use PEOs grow 7-9 percent faster than those who don’t.
  • Since 2010, employment growth among PEO clients has been 9 percent higher than other small businesses.
  • Employment growth among PEO clients has been 4 percent higher than employment growth in the U.S. overall economy.
  • PEO clients are 50 percent less likely to go out of business.
  • PEO clients have 10-14 percent lower employee turnover.
  • PEO clients enjoy a 21 percent savings on HR administration, even with a higher level of services.

Benefits of Utilizing a PEO

Operating and leading a business requires a lot of time and commitment. The last things a business leader wants to worry about are benefits administration, payroll, and other HR-related responsibilities.

A PEO will take on those responsibilities and provide advantages in the following areas:

  • More time to focus on growing your business
  • Higher business growth rates
  • Reduced turnover rates
  • Notably better employee benefits at lower rates
  • Scalable and flexible to adapt and grow with your business
  • Less likelihood of business failure
  • Access to extensive HR-related benefits and services
  • HR administration savings
  • Compliance with latest laws and regulations
  • Expert support and guidance

How a PEO Can Grow Your Business

While HR is not typically thought of as a big player in marketplace growth, it can make or break a business. HR is in the best position to oversee the entire organization’s growth and effectiveness. PEOs allow businesses the opportunity to work with experienced HR specialists that will look at an entire business and make sure everything is aligned and steering toward growth.

Learn more about how you can grow and enjoy the advantages of partnering with a PEO!