Inc. Magazine recently ran a phenomenal feature on PEOs (Professional Employer Organizations) and took some time to really dig in to the reasons that organizations choose to use companies like Quality Business Solutions. Realizing that many people aren’t familiar with the term “PEO,” let alone all that PEOs can offer to both small AND large businesses, we have put together a series of 3 blogs that will be coming out over the next month that provide insights on exactly that. Below is the first in our series “Why you should hire a PEO.”
One of the greatest advantages of hiring a PEO is improved access to employee benefit packages. Oftentimes, small to medium sized businesses assume that they simply cannot get the same quality of benefit offerings as larger organizations without spending an astronomical amount of money. Not so.
Underneath the PEO model, you experience what is known as “co-employment.”
While your employees still remain your employees, from a legal and risk standpoint, they also become employees of the PEO. By acquiring more employees, PEOs like QBS represent a growing number of staff which in turn allows them to negotiate better benefit packages and rates than a smaller company is able to do on its own.
By partnering with a PEO, you not only are able to unload some of the back-office work that keeps you away from focusing on the day-to-day running of your business, you are also able to offer benefits package that are must more competitive that other companies of your size. This can help you with recruiting and retaining higher quality employees. Companies who work with PEOs generally have higher levels of employee retention/lower turnover.
Of course, this is only one of the many benefits that comes with hiring a PEO. If you own or manage a small business, you are acutely aware that being able to offer an excellent benefits package for your employees comes at a high price. While the idea of co-employment may at the outset make you wary of the idea, don’t let that keep you from learning more, as this actually gives your company an advantage. The perks of offering better benefits via a PEO have proven to boost your growth rate by 7 to 9 percent as well as reduce your employee turnover by 10 to 14 percent! (Inc. 500).
Want to know more about how PEOs can benefit your business? Keep an eye out for our next post in this series “Keeping up with Changing Regulations and Keeping You in Compliance.”