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

Return On Investment of Using a PEO is 27%

Date: 10/31/2019

The average client of a professional employer organization (PEO) can expect a return on investment of 27.2% based on savings.

Research has found increased profitability and growth, higher employee satisfaction and lower turnover for companies that use a PEO.

The new report focuses solely on costs and calculated savings for PEO clients in five HR-related areas:

• HR personnel costs

• Health benefits

• Workers' compensation

• Unemployment insurance (UI)

• Other external expenditures in areas related directly to HR services such as payroll and benefits

According to the study, the average cost savings from using a PEO is $1,775 yearly per employee. This reinforced the findings of earlier research showing notably lower employee turnover, higher rates of employee and revenue growth and enhanced employee benefit offerings.

PEOs provide HR, payroll, benefits, workers' compensation and regulatory compliance assistance to small and mid-sized companies. By providing these services, PEOs help businesses improve productivity, increase profitability and focus on their core mission. Through PEOs, the employees of small businesses gain access to employee benefits such as 401(k) plans, medical insurance, dependent care and other benefits typically provided by larger companies.

A PEO can help a small business reduce the cost of recruiting, fill positions faster, offer Fortune 500-level benefits packages and help you stay in HR compliance. Let AlphaStaff help alleviate the stress and burden that comes with running a business. Learn more