What Are the Benefits of a PEO?

For growing businesses, navigating the complexities of human resources (HR) responsibilities can be time-consuming and challenging. Some of the HR-related pain points you may be experiencing as a small to mid-sized business include:

• Attracting and retaining top talent
• Providing high-quality employee benefits at a reasonable cost
• Staying compliant with shifting regulations
• Building a workplace culture that engages and empowers your employees

That’s a lot to manage, but this is exactly where a professional employer organization (PEO) can make a difference. A PEO works alongside your business to take care of key HR tasks—like processing payroll, administering benefits, and navigating compliance—so you don’t have to do it all on your own.

Partnering with a PEO frees up your time to focus on innovation and growth while also helping you retain top talent and strengthen your workplace culture. With the right PEO partner, you can:

• Simplify and streamline HR functions
• Offer competitive benefits packages at an affordable cost
• Access expert advice, timely recommendations, and support from experienced HR professionals

The impact of a PEO will be different for every company. Whether you require support for all HR tasks or just a few, a reputable PEO can help you find a solution that best fits your business.

At G&A Partners, we offer solutions tailored to your needs, including but not limited to:

• HR Management: Get comprehensive, scalable HR solutions that expand or contract with your evolving needs.
• Health Insurance & Benefits: Gain access to Fortune 500-level employee benefits packages to help you hold on to your best employees and compete with large organizations for top talent. Plans include group health insurance, dental and vision insurance, 401(k) plans, accident and disability policies, a variety of ancillary benefits, and more.
• Payroll Administration: Offload the time-consuming but critical tasks of payroll management and processing, giving you more time to focus on revenue-generating initiatives.
• HR Consulting: Tap into comprehensive HR expertise from a partner that puts your needs first. At G&A, our best-in-class client service means you get expert support and guidance to help you make informed business decisions around recruitment and retention, compensation and benefits, workplace culture enhancement, and more.
• Recruitment and Employee Retention: People stay where they feel valued. Our HR experts provide strategic guidance—helping you implement performance management programs, design competitive benefits packages, and develop professional growth opportunities—so you can boost engagement, improve retention, and attract top talent.
• HR Technology: Streamline day-to-day HR operations with integrated, user-friendly HR technology that can increase productivity and efficiency and help you avoid costly errors.
• Compliance: Staying on top of workplace laws—like the ACA, FMLA, OSHA, and more—is no small task. G&A’s HR compliance experts provide the insights, tools, and support you need to navigate evolving regulations and reduce the risk of costly violations.

In addition to helping reduce your workload, the best PEOs are committed to helping you elevate the employee experience by offering better, more competitive benefits.

Here are a few ways a PEO can help enhance your benefits offering:

• Better, more affordable benefits. Partnering with a PEO like G&A Partners makes it much easier for small and mid-sized organizations to provide Fortune 500-level benefits—including medical, dental, vision, life insurance, and more—at an affordable price point. However, when it comes to providing a more robust employee benefits package, working with the right PEO is key. Some smaller PEOs may not be able to offer comprehensive benefits at a price point that works for your bottom line. Because G&A works with a significant number of clients, we can put our greater purchasing power to work for you.

• The right retirement offering. Setting up and managing retirement plans can be time-consuming and costly. With a PEO-administered 401(k) plan, you can avoid taking on additional risk and administrative burdens while offering your employees an opportunity to plan for a more secure future. At G&A, we leverage our buying power to bring our clients top retirement plans with some of the lowest fees in the market.

• Voluntary benefits. Employees today are looking for employers to supplement group healthcare insurance and 401(k) retirement plans with affordable voluntary benefits. When you partner with a PEO, you have the ability to add affordable benefits such as disability, life, accident, and critical illness insurance.

• Quality-of-life benefits. No one can be healthy all the time, and it’s important for organizations to have plans and policies in place that help employees feel supported—even when they’re not at 100%. By partnering with a PEO, you can demonstrate a commitment to your employees’ well-being by offering quality-of-life benefits like an employee assistance program (EAP) that can connect them with mental health support and other wellness services like health incentive programs or access to a wellness coordinator.

• PTO insights and guidance. Due to complex federal, state, and local laws regarding paid medical leave and/or sick leave, setting PTO policies can be challenging. Enlisting the help of a PEO helps ensure compliance while providing your organization with the flexibility to fine-tune PTO policies for holidays, time off for volunteering, and more.

• Benefits administration, including online benefits enrollment. The more employees understand their benefits, the more they’re able to take advantage of them. A PEO can help by making enrollment easier through seamlessly integrated technology and by providing employees with the resources they need to make good decisions for themselves and their families.

One of the most compelling PEO benefits is its ability to help you manage costs while optimizing HR functions and services. In fact, the cost of working with a PEO is typically equal to the cost of hiring one full-time employee—and the payoff can be exponential.

A PEO can also help you prevent avoidable expenses, like:

• Potential penalties, fines, or lawsuits for violating local, state, or federal workplace laws and regulations
• High costs of employee turnover, including recruiting, hiring, and training costs and the loss of institutional knowledge.

By streamlining HR functions and offloading administrative tasks to a PEO, your business can free up time and resources to focus on revenue growth and profitability.

The ROI of partnering with a PEO can often be significant. A NAPEO study found that businesses that use a PEO have an average ROI of 27.2%. The study also stated that for every $1,000 spent on PEO services, an average business would save $1,272. And that’s just the average. Businesses with above-average in-house HR costs are likely to have above-average ROI with a PEO partnership. It’s also important to note that the study does not take into account the ROI from improved recruitment and retention, plus the time gained that you and your team can now shift back to revenue-generating tasks.

To learn more about PEO cost savings, schedule a consultation with our experts.

You might be wondering whether a PEO is the right fit for your business—and what the trade-offs could be. The good news? Most concerns are based on misconceptions, but it’s understandable that you may have questions, including:

Can I still retain control when partnering with a PEO?

Absolutely. You retain full control of day-to-day operations, decision-making, and management of your business and employees. A PEO is more of an administrative partner, handling HR-related administrative tasks, such as onboarding new hires, processing payroll, managing benefits, assisting with compliance, and more.

Will having a joint employer impact my company culture or employee loyalty?

A PEO partnership can be a game-changer, strengthening your company culture and deepening employee loyalty. By partnering with a PEO, companies can offer enhanced benefits, streamline HR processes, and create a more supportive work environment that helps employees thrive.

In addition, there is no evidence that employees feel less attached to their company when their paychecks are signed by someone else. You and your leadership staff are still in charge and in daily contact with your staff. Plus, a PEO can provide expert guidance to help you find ways to make your positive company culture even better.

Businesses of all sizes can benefit from a PEO, but small and mid-sized businesses tend to gain the most value.

Studies show that small and mid-sized businesses that use a PEO experience:

• Twice the growth rate of similar-sized companies that don’t use a PEO
• Lower employee turnover
• 50% lower risk of going out of business

Every company has its own unique HR needs. When you partner with a PEO like G&A, you gain access to best-in-class client service and a team that helps you identify and prioritize what’s most important for your business.

We can help you:

• Make better, more affordable benefits a reality
• Minimize the risk of regulatory noncompliance
• Support growth and scaling initiatives
• Attract, recruit, hire, and retain top-tier talent
• Create an inclusive and safe work environment

Ready to experience the benefits of a PEO for your business?

What is the difference between HR outsourcing and a PEO?

The difference between a PEO and other HR outsourcing options lies in the scope of services and expertise. While other partners can help with one or two types of services, such as payroll processing or benefits administration, a PEO can provide comprehensive HR services and support. To learn more, read our full article, "What is HR Outsourcing?"

What is a PEO and what does it do?

A PEO, or professional employer organization, allows business owners to outsource many of the administrative functions associated with HR, such as payroll, compliance, employee benefits administration, and more.

When you partner with a PEO, you enter into a “co-employment” relationship. Within this unique structure, the PEO becomes the employer of record for your workers, assuming much of the responsibilities (and sharing the risks) of your company’s complex employment matters. This co-employment arrangement gives the PEO the authority to handle back-office administrative tasks on your behalf. It’s important to note that, in this agreement, you retain full control of the day-to-day operations and management of your business and employees. To learn more, read our full article, "What is a PEO?"

How to choose a PEO for your small business?

You’ll want to do some research to choose a PEO that matches your unique needs. Consider the following when making your choice:

• Reputation
• Payment structure
• List of offered services (and flexibility to customize services)
• Years of experience and level of HR expertise
• Who will service your account
• Accessibility of customer service to you and your employees
• HR technology capabilities

To learn more, read our full article, "How to Choose a PEO For Your Small Business."