peo company

Why PEO?

The reasons for partnering with a PEO are as numerous and wide-ranging as the companies that use them. Some employ a PEO to give them more time to focus on their core business, others to achieve greater operating efficiencies, and still others to save money. All of these reasons are valid and, fortunately, when a company chooses to engage a PEO, it can realize all of these benefits, and more.


Realize operating efficiencies

When businesses elect to outsource their human resources to a Professional Employer Organization (PEO), they often realize significant operating efficiencies. PEOs bring to the table experienced experts, proven processes and sophisticated systems to manage companies’ human resources and administrative functions more easily and effectively. Outsourcing to a PEO can allow smaller companies to forego maintaining internal HR staff and costly infrastructure, or simply supplement some functions performed by in-house HR teams at larger organizations. In either case, the services provided by a PEO can be invaluable to businesses that may have the employees, but not the resources nor the inclination to support a completely internal HR department.

Eliminate costs

One of the most compelling reasons businesses turn to a Professional Employer Organization (PEO) is the significant cost savings outsourcing can provide. Direct savings can stem from the ability to reduce human resources headcount, systems and software expenditures. Those are savings business owners expect and understand, but there are other savings opportunities that may not be as apparent. Because PEOs pool their clients’ employees to procure health insurance and other employee benefit plans, such as vision, disability, and retirement plans, PEOs can often receive highly discounted rates. Those economies of scale enable PEOs to pass these significant savings onto their clients.

Remain competitive

Companies that hope to compete successfully know it takes a talented team, but sourcing and hiring the best and the brightest takes time and resources some aspiring companies can’t easily afford. Professional Employer Organizations (PEO) often employ experienced recruitment experts that have the hiring know-how a growing company needs to staff up strategically. PEOs can also provide access to smart, web-based technology, so companies can manage their entire recruiting process online. The result is more precise job descriptions, more qualified candidates, more streamlined screenings, and ultimately a more talented team.

Achieve peace of mind

A more Zen-like reason some business owners opt to partner with a Professional Employer Organization (PEO) is for the simple peace of mind that comes with knowing that everything has been taken care of when it comes to human resources compliance. Business owners are expected to comply with a full host of complex state and federal regulations and are often exposed to employee litigation that may or may not be legitimate. PEOs can help alleviate some of the headaches that accompany being an employer and serve as a sounding board for strategic human resource issues.

Focus on the core

Human resources is an essential component of every business, but HR isn’t typically a company’s core business. Instead, companies are involved in manufacturing goods, marketing products or delivering services. Professional Employer Organizations (PEO), therefore, provide a valuable service – they allow companies and their owners to focus on their core business by alleviating the burdens and complexities that surround workers and their issues, like payroll, employee benefits and workplace safety.

Ready to experience all the benefits of having a PEO partner for yourself? Click here to schedule a meeting with one of our local Business Advisors to see if G&A Partners is the right provider for you!

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