If you work with QBS or another organization similar to ours, you have likely experienced the benefits of working with a PEO. If you’re not familiar with the term, PEOs act as an outsource solution for administrative functions including payroll, benefits, tax compliance, HR, workers’ compensation and more.
In a previous article (Busy? A few ways using a PEO service could benefit your business) we discussed the primary benefits of working with a PEO. These include an increased ability to focus on your business, improved access to benefits and protection from some legal liabilities.
In a recent study conducted by the National Association of Professional Employer Organizations (NAPEO), researchers found that companies who utilize PEOs also see higher rates of business survival and lower rates of employee turnover. A previous 2013 study showed that small businesses who use PEOs also grow at a faster rate than non-PEO users.
According to the NAPEO study, “The overall employee turnover rate in the United States was approximately 42 percent per year, while for companies using PEOs, it is just 28-32 percent.” Knowing that employee turnover can be costly for any sized business, employee retention is a significant benefit of working with a PEO. Additionally, the study “illustrated that businesses that use PEOs are approximately 50 percent less likely to fail from one year to the next when compared to similar companies in the population as a whole.”
In the US roughly a quarter-million businesses are using PEOs and benefitting as a result. Are you one of them? If not, wouldn’t you like to enjoy lower turnover, higher rates of survival and more time to focus on your business? We thought so. Give us a call today to learn more about how QBS can help your business succeed, survive and continue to grow.
Original article can be found here: http://www.napeo.org/media/pressreleases/pr_091614.pdf