How a PEO can Help Your Business

Posted March 10, 2017 by Mary McGinley

Entrepreneurs and business owners want to be able to focus on the products and services they bring to the marketplace. In order to be able to focus on what advantages that they bring to potential clients and customers that the competition might not is important. Day to day operations can take away from management being able to concentrate on what makes their business unique.  Often the tasks and administration associated with the duties of a full-fledged human resources department can take management’s focus on growth and success of the business.

Making sure that a business remains compliant with all federal, state and local regulations as well as managing benefits, hiring& interviewing job candidates, and all other aspects of employee relations, are a part of what human resource professionals do. If a company doesn’t have its own human resources department, often all of these tasks fall upon the shoulders of management.

In a recent article at, studies indicate that businesses which partner with a Professional Employer Organization or PEO will often experience on average a 7 – 9% faster growth rate than those that don’t.   Here are some of the advantages that a PEO can offer to companies that utilize their services.

  • Staying Up to Date with Regulations – Every year regulatory agencies such as OSHA, the Federal Department of Labor, as well as regulations surrounding Workman’s Compensation, rules regarding complaints regarding Equal Opportunity Employment (EEOC) make changes.  Businesses who are partnered with a PEO can rest assured that these important details are taken care of by ensuring that all of the necessary paperwork is filed and that any issues regarding compliance are addressed.  That attention to detail can mean the difference between success and having to face very real legal consequences for not being in compliance.
  • Avoiding Business Failure – Businesses that partner with a PEO are 50% less likely to go out of business than businesses that choose not to use a PEO.
  • A Much Lower Rate of Employee Turnover – The rate of employee turnover in the United States is currently at 42% per year. Turnover rates for businesses that partner with a PEO are on average 14% lower at between 28 – 32 percent. Employees working for companies using a PEO tend to feel more valued because they know that their payroll, benefits administration, performance reviews, training and career track planning are more carefully monitored and handled on an individualized basis.  Employees working for a company where they feel valued are happier, more productive and tend to stay longer because they feel more secure.
  • Savings to the Bottom Line – Payroll and benefits mistakes can not only be costly for workers but for companies as well. Having the correct payroll and benefits procedures in place is required by law. When a PEO takes care of these duties as well as those of taxes and other deductions, companies will often see a 21% savings on those human resource administrative costs.

At EinsteinHR, we can help your business with personalized HR advice that is current and in compliance with the law. That leaves you to do what you do best when it comes to your business. We can help you with all of human resource needs of your small or medium sized company. Contact us today to find out how we can help and get a quote. You can reach us toll-free at 888-981-3622 (EMC2).