Professional Employer Organization (PEO) companies are advantageous for businesses of all sizes, from those that have only one employee to those that have hundreds. Small employers realize cost savings in outsourcing HR administration to a PEO because PEOs spread costs across a larger pool of employees. With a PEO’s purchasing power and bundled services, employers often find that partnering with a PEO costs less than doing it alone or hiring the staff needed to cover all the bases.
With a long term PEO partnership, employers gain the benefits of deep HR support to manage and mitigate risk, lower rates on workers’ compensation insurance and relief from many of the administrative burdens of benefits and payroll administration. That means less time spent on HR management, fewer HR challenges and more time to focus on growing the business. Here are four advantages for employers: