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Learn About What Is PEO

Can a PEO Help You Grow Your Company?


  • PEOs differ in services offered. Some focus on basic HR, while others provide a more strategic approach.
  • PEOs are service providers and don’t interfere in a company’s operational decisions or areas like sales and marketing.
  • Quality Business Solutions (QBS) stands out, offering 20+ years of experience, staying updated with market changes, and strategic partnerships. Contact us to get started!

In the outsourcing industry for Human Resources services, business owners can be overwhelmed by the numerous options and service offerings available when searching for an ideal partner.

In this blog, we will delve into the topic of Professional Employer Organizations (PEOs) and examine how they can be an invaluable resource for businesses. By partnering with a PEO, companies can offload certain HR responsibilities to concentrate on core business activities. Ultimately, this can lead to increased efficiency, reduced costs, and improved business outcomes.

So, let’s explore the world of PEOs together and discover how they can help your business thrive.

Discover How PEO Can Help You Grow Your Business

What Is a PEO?

A Professional Employer Organization is a company that acts as a co-employer with a contractual agreement between your business and the PEO. In this agreement, both parties share employment responsibilities, and the PEO provides human resources services for your company. The extent of functions you can outsource to a PEO depends on the services offered by the organization.

Most PEOs handle basic HR services such as hiring, payroll, benefits administration, risk mitigation, and compliance. Some have extra services or a more strategic approach, similar to SHRM (Strategic Human Resources Management). It is important to thoroughly research and compare different PEOs to choose the one that best fits your needs. According to research conducted by Paychex, 59 percent of organizations with between 5 and 500 employees currently leverage a PEO for its flexibility, allowing companies to scale their businesses while still maintaining control.

Although they have a co-employment relationship with your employees, PEOs are only service providers. A PEO will not participate in your company’s operational decision-making. It will not debate decisions or participate in areas such as sales or marketing. In other words, working with a PEO should not represent any changes to how your company operates beyond a new logo on your employees’ paychecks.

Professional Employer Organizations (PEOs) empower businesses to focus on growth by handling HR complexities with expertise and efficiency.

Types of PEOs

A PEO is characterized by a co-employment system. What can vary are the services they offer or how they offer them. For example, one company may provide employee benefits as part of its basic plan, while others offer it as an extra service. This same thing can happen with other HR services offered by PEOs.

These companies can also differentiate themselves by their target market and how they provide those services. Some PEOs may specialize in a particular industry or state and offer various HR services.Other PEOs may offer only payroll and benefits services, and others may provide a complete suite of HR services, including onboarding and training.

Various organizations provide HR outsourcing services, including HROs and staffing companies that offer staff augmentation. However, these models differ from a PEO.

How Can a PEO Help You Grow Your Company?

Working with a PEO has tangible, measurable, and quantifiable benefits. According to the National Association of Professional Employment Organizations (NAPEO), small and medium businesses that partner with a PEO grow 7% to 9% faster, have 10% to 14% less employee turnover, and are 50% less likely to go out of business. In other words, working with a PEO helps companies to grow and retain qualified talent. Likewise, NAPEO calculates that the return on investment (ROI) of having a PEO as allies is 27.3% in operational cost savings.

Another advantage a PEO can provide to your company is saving time by freeing up employees who previously had to do HR tasks and letting them focus on operational or creative functions that are more valuable for the company’s growth. Additionally, employee benefits are typically included when hiring a PEO, and it can offer improved employment-related compliance assistance.

Remember that experienced PEOs have professionals on their teams from all areas of HR who can help and advice your company to comply with all regulations, thus reducing the risk of falling into a lawsuit or some other type of legal problem due to lack of compliance or knowledge.

Outsourcing HR functions to a PEO is not just about delegation. It’s a partnership for streamlined operations and sustained business growth.

Read Here How to Choose A PEO Partner For Your Company

Focus on What You Do Best: Grow Your Business with QBS

By partnering with Quality Business Solutions, Inc. (QBS) you can confidently delegate your HR services and watch your business flourish strategically. We offer powerful, flexible business solutions to your company’s unique needs.

Our PEO services include Human Resources management, payroll processing, benefits administration, tax reporting, and Workers’ Compensation, allowing your company to optimize its operations, maximize efficiency, and grow strategically.

With over 20 years of experience at QBS, we have stayed at the forefront of market changes, Human Resources regulations, tax rules, and technological advances.

Our partnership since 2019 with Vensure Employer Services, one of the nation’s leading PEOs, has further strengthened our commitment to providing top-notch services. Our client-centric approach, commitment to best practices, and dedicated team make QBS a trusted partner for businesses looking to grow while leaving the complexities of HR management in capable hands. Contact us now and find out how we can help your business grow!

PEOs Final Thoughts

Organizations often find that managing HR and compliance in-house can be a challenging and time-consuming process.

As companies strive to grow and expand, investing valuable time and resources into repetitive tasks that do not contribute to their goals can be detrimental. To address this challenge, a PEO may be a suitable option.

By redirecting the workforce’s efforts towards results and objectives that drive growth, companies can remain competitive. Don’t hesitate to contact us in QBS for a flexible business solution to your company’s unique needs!

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