Business Growth and Survival
According to a study by the National Association of Professional Employer Organizations (NAPEO), small businesses that work with PEOs experience faster growth. On average, they see a 7 to 9 percent increase in their revenue growth compared to non-PEO businesses. Furthermore, PEO clients have a 10 to 14 percent higher chance of staying in business.
Companies partnering with PEOs have reported improved employee retention rates. A study by the National Association of Professional Employer Organizations found that PEO clients have a 10 to 14 percent lower employee turnover rate.
Access to Benefits
PEOs can offer small and medium-sized businesses access to competitive employee benefits packages, similar to those provided by large corporations. A NAPEO survey revealed that 79 percent of PEO clients offered retirement benefits, compared to 63 percent of similar non-PEO firms.
Staying compliant with labor laws and regulations is crucial for any business. PEOs can provide expertise and support to ensure companies meet their legal obligations. According to a study conducted by McBassi & Company, businesses that use PEO services are 50 percent less likely to receive a workplace-related penalty than those that do not.
Administrative Time Savings
By outsourcing HR-related tasks to a PEO, businesses can save time on payroll, benefits administration, and other HR functions. The McBassi & Company study also revealed that PEO clients save, on average, 21 hours per month on HR-related activities.
Focus on Core Business
With HR functions managed by a PEO, businesses can shift their focus and resources toward core operations, strategic planning, and growth initiatives.
While the costs of PEO services vary depending on the company’s size and needs, some studies suggest that businesses can achieve cost savings by using a PEO. For instance, a study by the National Association of Professional Employer Organizations indicates that small businesses that work with a PEO have a 27.2 percent lower employee turnover cost.
© 2023 PEOPayGo. All Rights Reserved.