- 2 to 3 million employees across the U.S. are co-employed in a PEO arrangement.
- Small businesses with PEOs have seen 9 percent higher employment growth than other companies since 2010.
- In 2012, businesses with PEOs experienced a 10 to 14 percent lower employee turnover than the national average.
- Businesses that employ a PEO are 50 percent less likely to fail.
If your small or mid-sized company struggles to manage complex human resource tasks, a Professional Employer Organization, or PEO, is a popular way to outsource human resource functions like payroll, employee benefits, allowing business owners to focus on running their company.
A PEO establishes a co-employer relationship with your staff and contractually assumes certain employer rights, responsibilities, and risk. PEOs pay wages and associated employment costs in exchange for a fee. Business owners remain responsible for managing daily operations, including employee supervision and management.
One of the main draws of TrussOne and the inclusion of a PEO is the selection of coverage options for medical, dental, and vision care, as well as life, disability and workers’ compensation insurance.
Other ways a PEO can benefit your organization include:
- Providing assistance across the employment spectrum — hiring and firing, job descriptions, employee handbooks, worker retention tools, and staffing strategies.
- Helping implement improved employment practices, compliance, and risk management to reduce liability.
- Allowing access to comprehensive employee benefits, giving your company a competitive edge in the labor market.
PEOs are increasing in popularity as U.S. employers seek to emphasize core functions and increase efficiency, while foregoing internal HR departments and the costs associated with them. The National Association of Professional Employer Organizations (NAPEO) estimates that 250,000 small and mid-sized businesses and their 2.5 million employees are part of PEO arrangements. These numbers are expected to grow as the nation’s economy improves and employers recognize the advantages of outsourcing HR functions.
Professional Employer Organizations (PEOs) enable clients to cost-effectively outsource the management of business solutions, including human resources, employee benefits, workers’ compensation, payroll, and accounting services. PEO clients can then focus on their core competencies to maintain and grow their bottom line. A recent small business study by the National Association of Professional Employer Organizations (NAPEO) showed businesses that utilize PEO experienced 10% higher growth rates than those who did not.
Lever1 is a Kansas City-based PEO, additionally a trusted member of NAPEO and ESAC, providing business solutions for forward-thinking companies across the country. Building partnerships with confidence, Lever1 allows its clients to focus their resources on generating revenue.
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