Storage Business Owners Alliance
30665 Northwestern Highway  Suite 100
Farmington Hills, MI 48334 USA
Toll Free: (248) 254-9000
(248) 254-9000
Phone: (248) 254-9000
Fax: (248) 538-4327
Email: info@thesboa.com

Benefits of Using Professional Employer Organizations to Grow a Business

Date: 6/6/2019

 As a business owner you already have a lot on your plate, especially with the changing economic environment. Support systems are proving to be a savvy way to help you manage the daily requirements of the business environment. It is vital to identify a suitable service provider to enable you to retain staff, offer excellent services and make steady long-term profits.

How Does a PEO Help Business Owners Focus on Growth?

As a business owner, you cannot always do it all. If you are looking to run your business efficiently you do not want to worry about dealing with paperwork, financial liabilities or employee obligations.

Professional Employer Organizations (PEO’s) help businesses achieve higher returns and improves multiple areas of the organization. Exploring the services of experts in the field of outsourcing can be a great business strategy.

Benefits a PEO can offer your business:

• Payroll and tax • Unemployment claims

• Risk management

• Structuring of employee benefits

• Reporting

PEO services guide on compliance which helps a business navigate complex state regulations and demanding organization processes.

What Is Driving the Rapid Growth of PEOs?

Significant challenges of a business manager:

• Compliance with regulation and interpreting the changes

• Tracking employee work schedule and time

• Offering competitive advantages

• Talent retention

It follows that a PEO positions itself to address the firm's concerns directly. Outsourcing enhances business survival through rapid growth of clientele, lower employee turnover rates and higher business survival rates in comparison to competitors.

     1. Employee Retention

     The highest pillar of business success is staffing. High employee turnover is not only an      expensive undertaking but also sends the wrong signal in terms of:

          • Damaging business brand in the marketplace

          • Lowering staff morale

          • Decreasing the attractiveness of a firm to new talent

Of equal importance is the cost of recruitment, training expenses and the time it demands. It can also put a strain on existing employees when positions remain unfilled and they have to share the extra workload. This can often lead to unfinished work. Competitive advantages are the drivers of any business, therefore PEOs are typically placed to negotiate attractive insurance packages for small and medium-sized companies due to scale. Professional service providers can offer employees flexible savings plans and consumer-oriented health care options. An enterprise will only be able to offer a regular healthcare insurance plan, a PEO can be more generous to the employees for a similar budget.

      2. Changing Business Environment Regulations

     Small and medium-sized businesses find it hard to keep an eye on sales and growth while      keeping pace with changes in state imposed regulations in the workplace. In contrast, PEOs      specialize in tracking and monitoring these changes and move swiftly to implement them      efficiently. You do not need to worry about non-compliance with healthcare reforms,                          authority-stipulated minimum wages, safety, insurance and a host of other requirements.

     3. Staffing Management

     PEOs work across the employee management spectrum, continuously updating handbooks, and      legal policies to safeguard the firm against legal actions. In some cases, the service may include      granting access to online integrated human resource management platforms that benefit both the      employer and staff.

PEOs are proving to be beneficial to small and medium-sized businesses by leveraging the core functions and efficiencies these services provide. Regardless of size, a company stands to benefit from a catalog of HR technology and specialized support, allowing for business growth. Contact AlphaStaff today to find out more.