Many businesses across the country seek the services of a PEO (or Professional Employer Organization) like Einstein HR. Though our organization can assist businesses of any size, it is especially important for small-to-mid-sized companies with between five and 100 employees to use a PEO. And the use of PEOs is prevalent among many industries and businesses.
According to information obtained by the National Association of Professional Employer Organizations, roughly 15 percent of all businesses in that size range use PEOs, representing about 175,000 companies. This gives PEOs a total employee pool that includes more employees than the U.S. Walmart locations, Wells Fargo, Apple, Google, Starbucks, Amazon, IBM, FedEx, and AT&T combined.
Additionally, the data shows that the PEO industry has been growing at a rate 14 times faster than the overall growth of the American economy. This should be enough to have business owners seriously considering the reasons behind the widespread use of PEOs.
PEOs Can Save Employers Money
One of the chief goals of any business owner is the maximization of profit. When you spend excess money on salaried, full-time human resources and accounting departments, chances are good that you are reducing your overall profit by spending more money than it would cost to have a PEO take over those services. Typically, the cost of a PEO can come in two different forms:
- Fixed rate per-employee, per month; good for companies with fewer employees and a need for budgeting predictability
- Percentage of overall payroll; better for companies with a large amount of low-wage employees
When a business owner enters into a relationship with a PEO like Einstein HR, they often are able to select the payment structure that works best for their particular business. This can save them money in the long run.
PEOs Can Save Employers Time
When a business owner starts their company, they usually envision working on their dream goals, dealing with customers, expanding their industry influence, and bringing on employees that care about the trade. No business owner goes into the ownership field wanting to spend all of their time on paperwork, but many find themselves swamped in this reality.
PEOs like Einstein HR employ experts in HR and accounting services who can be trusted to handle the myriad paperwork and legal red tape that comes with operating a business. In fact, Einstein HR was founded by industry veterans and has appeared on the coveted Inc. 500 and Inc. 5000 lists of the fastest-growing companies in the United States.
Services Provided By PEOs
The way that PEOs save companies time and money is by providing high-quality services that otherwise may cost more or may not be feasible given the individual companyâ€™s resources. Some of the services provided by Einstein HR include the following.
PEOs can help companies by handling all of their payroll administration needs, such as dealing with third-party checks, managing the accrual of vacation time or sick leave, handling federal and local tax paperwork like W-2s, issuing checks, reporting new hires, and more.
Employee Benefits Management
Having high-quality employee benefits can help businesses in a number of ways, including by cutting down on costly employee turnover and attracting top talent. PEOs use a relationship called co-employment to engage in their work, which means that they have a much larger employee pool than any single client company. Therefore, PEOs can provide better benefits at a lower individual cost than client companies would be able to provide.
The risk profile of a business is very important. Higher risk can lead to significant costs down the line or missed partnership opportunities as other companies seek to distance themselves from the risky business. PEOs employ experts in risk mitigation and can help client business owners by ensuring compliance with federal and local labor laws, refining safety standards, and even working to draft anti-harassment policies to avoid lawsuits.
Another important factor that may be overlooked by busy employers is Workersâ€™ Compensation. This is legally required insurance coverage for most employers, and PEOs can help owners handle these matters. Services that Einstein HR provides include managing Workersâ€™ Compensation claims, developing safety plans, risk reduction, reporting, and more.
Starting Your Journey With a Trustworthy PEO
If you are a business owner looking to save time and money by getting into the PEO trend, look no farther than Einstein HR. Voted as having the Best Customer Service by Gwinnett Magazine five years in a row, we take pride in providing high-quality HR and accounting solutions to our clients at a fraction of the cost of a full-time, in-house staff.
To get in touch with Einstein HR, simply fill out the form on our contact page or call us today at 770-962-1700. We will have one of our representatives speak with you within 48 hours so that you can start saving money and learn why so many business owners around the country trust PEOs to handle their day-to-day HR needs.