Benefits of using PEO

Our experience has identified several reported benefits from clients who are using a PEO:

  • Reduced cost of services for HR, payroll, WC and benefits improves the company financials.There are hard and soft cost savings. The hard savings will show up in the PEO proposal. Some costs are hidden. Some services provided by the PEO may allow the company to spend less with employment attorneys, on printing of employee handbooks or the development of job descriptions. The time and effort of a part time HR specialist at a company compared to an HR specialist at a PEO also can be significantly different in favor of the PEO.
  • Increased benefits for their employees may lead to better retention. Having better benefits, allows companies to attract and retain better employees.  This can offer a competitive edge to a company compared to their competition.
  • Access to specialists helps reduce time and risk associated with HR issues. Having a trained specialist who is dedicated to HR issues 100% of the time at a PEO brings true expertise, efficiencies and confidence when handling HR issues.
  • Increased reporting functions help analyze business efficiency. The
    Human Resources Information Systems (HRIS) at a PEO allows for significant report generation to analyze costs and internal efficiencies.
  • Reduced risk of non-compliance because of improved systems and procedures. The PEO’s management of federal and state regulations allows the business to focus on driving revenue.
  • Single source management of HR, payroll, benefits and WC reduces relationship management for the business owner and increases efficiency. Having one relationship to manage for several functions, reduces the time and complexity in managing multiple vendors.
  • Increased infrastructure to expand quickly. PEOs can handle explosive growth in personnel being added to a company. This allows a company to have the ability to grow quickly when opportunities are available.
  • Increased confidence in their HR services. Knowing that a trained specialist is handling a company’s HR issues reduces stress and the risks involved with employment related activities.

The National Association of Professional Employer Organizations (NAPEO)recently completed a study that confirmed several strong benefits for businesses that engage a PEO. This study can be accessed at