Professional employer organizations, or PEOs, provide services to approximately 180,000 small to mid-sized businesses throughout the United States. Partnering with a PEO has numerous advantages, not the least of which is the ability to provide your employees with Fortune 500-level benefits while keeping your costs under control.
You should consider working with a PEO if you need:
Better employee benefits.
Through a PEO, you can gain access to more robust 401(k) plans, health, dental, life and other insurance, dependent care and other benefits you may not otherwise be in a position to provide your employees. This can give you an important competitive advantage in today’s candidate-driven job marketplace.
To ensure legal and regulatory compliance.
PEOs provide critical assistance in keeping you up to date and compliant with all local, state and federal employment laws and regulations. Keeping legal action at bay will protect your financial bottom line, as well as your employer brand image and reputation.
To grow your company.
According to a recent study by noted economists Laurie Bassi and Dan McMurrer, small businesses that use PEOs grow seven to nine times faster and are 50 percent less likely to go out of business. The overall failure rate among private businesses in the U.S. is approximately 8 percent. Among those that have used PEOs for at least four quarters, the rate is 4 percent.
To reduce turnover.
Businesses that partner with PEOs have 10 to 14 percent lower turnover rates; 28 to 32 percent, compared to approximately 42 percent for companies overall in the U.S.
Time to focus on your core business.
As your business grows, you may not have the time or background to focus on payroll, regulatory compliance, risk management, insurance, benefits and other HR demands. PEOs give small-group markets access to myriad benefits and employment amenities they would not otherwise have. This frees you up to do what you do best: focus on your core business mission.
Partner with Lyons HR PEO!
Lyons HR is PEO accredited by the Employer Services Assurance Corporation (EASC) – the gold standard for PEO best practices and financial reliability. We’re proud of this distinction, which has been earned by only about 5 percent of PEOs. If you’re considering a PEO partnership for your production, industrial, real estate or other business, contact us today to learn more about why it will be one of the best strategic business decisions you’ll ever make.