Should You Use a PEO for Your Business?
3 Ways Your Company Can Benefit from Outsourced HR

As the owner of a thriving small business, your attention and work demands are pulled in multiple different directions. And that’s just by lunch time! You started your company because you had an idea that could truly change your industry, which means you should focus your time on improving your product or service and how it helps your customers. Instead, your days are spent dealing with paperwork and other HR-associated chores, rather than doing what you love. Maybe it’s time you learned more about what a PEO can do for your business.
Short for “Professional Employer Organization,” a PEO provides a comprehensive solution for all of your company’s human resources needs. It covers payroll, onboarding, and training to compliance, health insurance, and everything in between. Outsourced HR from industry experts frees you from administrative paperwork so you can focus on the meaningful work with your employees.
Let’s explore 3 distinct ways a PEO can help your small business succeed.
#1 Co-Employment is Your Friend
What exactly do we mean by “co-employment?” As stated in our “What is a PEO?” article, this relationship allows the PEO to become the “employer of record” for your employees. This arrangement allows the PEO to assume the big risks, liabilities, and responsibilities inherent to major employment concerns.
Specifically, co-employment gives the PEO the power to negotiate better rates for insurance and other benefits, as it has greatly enhanced purchasing power in the marketplace compared to your small business. The PEO will also take care of more complex HR functions like compliance with healthcare legislation, IRS reporting, workers’ compensation, and other tasks that can be difficult for you to handle without serious legwork.
#2 Enhanced Employee Experiences

Think of it this way – if you were an expert in benefits administration, you would have worked in human resources. Instead, you started a company in an industry that excites you and showcases your expertise. Partnering with a PEO allows you to provide your employees with direct access to people who can answer detailed questions about any HR topic with ease, efficiency, and clarity.
Instead of stressing out about their benefits coverage or how to apply for FMLA leave, for example, your employees know exactly where to go for professional answers. This frees them up to do better work for you, while also freeing you up from spending time finding the answers to these questions. More importantly, happy employees are more likely to stay with your business for longer. This increases the company’s productivity, lowers turnover, and decreases the cost of having to retrain new employees.
#3 Invest More Time into Your Business
Independent industry research has revealed that your average small business owner easily spends 25% of their time on HR duties, with 25% of that time spent solely on paperwork. That is a lot of time dedicated to work that’s not focused on your product or customers. Furthermore, your employees are very important, so shouldn’t you show them the respect they deserve by giving them both quality benefits and excellent leadership?
In fact, the National Association of Professional Employer Organizations has data showcasing the following benefits of partnering with a PEO for your small business:
- 7+% faster growth than companies without a PEO
- Up to 14% less employee turnover
- 50% less likely to permanently go out of business
With a PEO, you’re putting experts in charge of your HR. You now have time back in your schedule to lead your company more effectively. The less time you spend with benefits administration, the more time you’re doing real work that drives your company forward towards success.
To learn more about how outsourced HR with a PEO can help your small business, contact G&A Partners today. We can help you lower costs, improve productivity, increase retention, and grow your company.