Many small and mid-size business (SMB) employers and their employees could use a win these days after more than two years of uncertainty that has included the COVID-19 pandemic, the highest inflation in 40 years, and political and social tumult.
Fortunately for these SMBs there is a win-win solution that is growing exponentially: the outsourcing of HR services to professional employer organizations (PEOs).
“[PEOs] provide human resources services to their small business clients – paying wages and taxes and providing compliance assistance with myriad state and federal laws and regulations,” says the National Association of Professional Employer Organizations (NAPEO). “In addition, PEOs often provide workers with access to 401(k) plans, health, dental, and life insurance, dependent care, and other benefits not typically provided by small businesses.”
The reach of PEOs in the United States is far and wide:
“By providing payroll, benefits, and HR services and assisting with compliance issues under state and federal law, PEOs allow small businesses to improve productivity and profitability, to focus on their core mission, and to grow,” says the NAPEO.
There is something cosmic about the power of the number 3 with Aristotle using the Latin phrase “Omne Trium Perfectum” in his 4th century BC “Rhetoric”.
That Latin phrase translates into “Three is perfection” and the NAPEO has demonstrated that good things do indeed come in 3s, especially when partnering with PEOs, in their infographic that showed both:
“By working with a PEO, small business owners can use HR technology that can help simplify many HR tasks while also improving the employee experience,” said BenefitsPRO. “Turning to an outsourcing solution, such as a PEO, can help business owners who feel overwhelmed with the many HR responsibilities that must be managed each day. By having more time, leaders can focus their efforts on other areas of the business that can facilitate growth.”
There are hundreds of ways small businesses benefit from using PEOs but for those that need convincing, the elevator pitch highlights 3 specific ways including:
While this research was done prior to the pandemic, it appears that using a PEO during a crisis period continues to increase small business survival odds with McBassi & Company in September 2021 finding that “since the pandemic, relative to comparable small businesses, PEO clients are 58 percent less likely to have permanently closed.”
The good news gets even better because it is just not employers that benefit from partnering with a PEO, but employees benefit from the resources and expertise the outsourcing relationship provides.
Here are 3 ways that PEOs help employees of small businesses:
o Health insurance
o Dental insurance
o Vision care
o Life insurance
o Retirement savings plans
o Job counseling
o Adoption assistance
o Education benefits
Heck, some PEOs can even arrange for employees to gain pet insurance!
Reach out to Partners HR today to find out more about how our experienced HR team can help your company work more smoothly and efficiently.