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Reasons for using PEO

Business owners have a significant number of things to worry about every day as they fight to grow their business.  If they can shift some of the day to day management of administration and compliance issues to a group of skilled professionals, it will allow them to focus more on growing their business and beating their competition.

As companies look to their future, they may see a need for changing the way they are currently doing things.

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Our experience has identified several major reasons that a business might look for a PEO:

  • Workers’ Compensation concerns–non-renewals, cancellations, consent rated or mod increases may give a business owner a reason to look for a PEO to partner with for workers compensation.
  • Health Insurance – Increasing health insurance rates have driven business owners to shop around for more cost-effective coverage. We are currently seeing a strong demand for PPACA solutions through PEOs.
  • Business Growth – Companies that are expanding rapidly need scalability to handle the growth and a PEO can help a company ramp up quickly.
  • Business Contraction – Businesses that are trying to minimize costs and reduce overhead look to outsource certain functions to reduce the number of full-time employees that are held on their payroll.
  • PEO Dissatisfaction – Some companies are not satisfied with their current PEO and are looking for a better fit with another PEO.
  • Frustration over government compliance – Businesses get frustrated with the to complexity of laws and regulations and would like a skilled professional to help avoid potential legal landmines.
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