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Small Business Digest


5 Reasons Why a Small Business Should Choose a PEO

Experts have argued about the merits of having employees managed through a Professional Employee Organization (PEO).

Often times, the "pros" outweigh the "cons."

But for an organization, there are many things to consider. 

Employco, a PEO, offers these 5 tips on why a small business should consider engaging a PEO:

  • Level the Playing Field: Small and medium-sized business owners often find it difficult to compete for talent with larger companies in the arena of employee benefits, however through a PEO a small company can level the playing field, and offer its employees the same benefits as a Fortune 500 company. 
  • Streamline Operations: In addition to taking on legal risks and responsibilities, PEOs can help streamline human resources operations and handle everything from employee-related administration to hiring and firing matters. Whether a company has an overworked HR staff in-house or no HR at all, a PEO can allow small business owners to spend more time focusing on managing their business.
  • Control Health Care Costs:  PEO’s are able to pool their client base together and use this group purchasing power to offer competitive benefits packages to small businesses that rival those of much larger corporations. 
  • Simplify Life as a Business Owner: A PEO shoulders the tasks that business owners don’t have time to deal with — including HR, providing competitive health coverage, claims management, payroll taxes, direct deposits, etc. It is a way to simplify a small business owner’s life by taking away the administrative burdens. 
  • Scalable Solution that Grows with the Business: A PEO provides a “hands-free” approach for small business owners as your organization grows. Once set up, PEOs provide owners the flexibility to quickly add new employees to their organization or make adjustments to payroll, health coverage, etc. by providing a centralized clearinghouse for all of these services.

As the recession hits harder, having a PEO may prove very helpful in downsizing an organization.  At the least, the company doesn't need to go through this process alone.


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