The market for PEOs is worth $52.44 billion. The growth is no surprise to those who have tried them.
More and more businesses are relying on these service providers, and they’re one of the fastest-growing sectors of the country’s economy. They help with retaining talent, growing profits, and more.
If you haven’t made them part of your team yet, now is the time. Read on to learn the many benefits of hiring a PEO.
What Is a PEO?
Understanding what these services can do for you starts with asking, what is PEO? It’s an anagram that refers to a unique business partnership.
PEO stands for professional employer organization. Their job is to work on behalf of a business to hire employees for them. Their other services may include:
- Payroll processing
- Securing benefits
Each one differs in how much they cover, and they may be local or international. Take the time to find the right one to cover the scope of your business
Benefits of Hiring a PEO
In addition to hiring, a PEO can help you with legal matters, save you time, reduce your necessary staff, and improve benefits for your employees. This lets you focus on running and expanding your business.
The Department of Labor enforces over 180 federal laws. They relate to issues such as worker’s compensation, safety, and family and medical leave.
A PEO is up-to-date on all of these rules and how they change. They’ll help you stay compliant and avoid fines, lawsuits, and other legal issues.
Working with them reduces liability for your business. They’ll be your co-employer and take on responsibility for issues such as lawsuits or damage.
Hiring a PEO reduces the amount of other staff you’ll have to hire. You won’t need anyone else for payroll, benefits, or HR, saving you time and money.
Their hiring practices are not only compliant but a major help when trying to find the right employees. Once they enter your business, they can observe and train them to be the best they can be.
Your employees will also benefit because the PEO can expand their benefits. They know how to work with providers and benefits companies to get them better healthcare plans, retirement plans, and insurance.
80% of employees prefer benefits over a pay increase. Making sure they get the best possible perks can help you retain and attract the best talent.
All of the work a PEO does means you can focus on expanding your business. You’ll only have to think about what you need to do to make it bigger and better. The PEO handles all the other business services.
Where to Find More Tips
Hiring a PEO is one of the best business relationships you can enter into. You’ll get a co-hirer that can help you find the best talent. They can also replace other departments such as HR and payroll.
They’ll help you remain compliant with all legal requirements and reduce liability if anything goes wrong. They’ll train your employees and get them the benefits they deserve.
Read the rest of our content for more business tips.