Web Statistics

Why PEOs Make Sense For Small Business Owners

Back to the Library >>

Why PEOs Make Sense for Small BusinessAs a small business owner, you know it takes a lot of grunt work to keep your business running. The more of that work you can delegate, the more time you will have to invest in the growth of your business. Let’s look at some ways a PEO can help your business thrive:

Save Time—By delegating your HR responsibilities to the PEO, you can shift your focus to business critical tasks like strategy, marketing, and talent acquisition. If HR responsibilities take up 25% of your time, that’s at least ten hours a week you can recoup.

Save MoneyNAPEO reports that small businesses can save as much as 35% on HR administration costs when they work with a PEO as compared with the average money spent on HR by non-PEO companies. In addition, PEOs can save you money on fees and fines associated with non-compliance or missed deadlines.

Improve Service Offerings—PEOs can offer deeper services than most small businesses can afford to handle on their own. For example, many PEOs offer assistance with compensation planning, performance reviews, recruiting, employee training, workforce metrics and analysis, and even personality testing for improved decision making. Business owners can take advantage of these services and still pay less than they would by managing HR on their own.

Lower Turnover Rates—Small businesses that work with a PEO consistently experience between 10% and 14% lower turnover rates than their counterparts who go it alone.

Support Growth—Growth comparisons between small businesses that partner with a PEO and comparable businesses that do not consistently demonstrate stronger employment growth for PEO clients.

But Won't I Lose Control of Parts of My Business?

This is one of the most common misconceptions we hear from small business owners about partnering with a PEO. The good news is that it’s simply not true. You retain full control over hiring and termination decisions, day-to-day operations, compensation decisions, business growth and direction, employee management, performance assessments, and all other business critical activities. But you’ll be able to delegate the administrative burden of payroll, benefits administration, compliance, and other HR services to the PEO.

PEOs specialize in these responsibilities, and because they manage a pool of thousands of employees, they can often give you better rates and more options in terms of benefits and insurance. Many PEOs focus on specific industries, which means they know the details about compliance and risk in your field and they stay up to date on new guidelines and regulations.

Let Us Help You Find the Best PEO Fit For Your Small Business

At PEOCompare.com, we specialize in matching business with their perfect PEO partner. If you're ready to put up to 10 hours back in your week and save 35% on the cost of HR administration, check out our PEO Matching Tool today!

Find a PEO That Matches Your Unique Criteria


Quickly Compare PEO Companies


Newsletter Signup

Testimonials! The finest folks on the web have used PEOcompare to guide them in their PEO selection.

"I found PEOcompare and could use their services matching tool as a guideline, choosing wisely what services we wanted for our company. Quickly we received responses from some PEO Companies and selected MyBackOffice within a week. It has been a great relationship and great fit for our business. I would have never found MyBackOffice, so if you need a PEO that is a fit for your business, I suggest  PEOcompare.com."

Jack Trompert, President
Talent 101

"PEOcompare narrowed my search, saving me time & reducing my amount of research.  I had limited staff and a limited budget, I needed a PEO company that could fit my needs. PEOcompare provided a free, easy to use tool with an automated PEO scoring framework that let me control the process.  I chose the companies I wanted information from."

Todd Girard, Owner
Trinity Optical

Our Favorites: Popular Articles