It can be challenging when starting a small business or learning how to grow a small business in a tough economic climate, but did you know that a professional employer organization (PEO) can support these goals? It is believed that a PEO can help any small business expand faster because outsourcing payroll administration is a cost effective way to handle a growing workforce. This is definitely the case as more businesses are faced with managing the responsibilities of replacing an aging employee population that’s headed for retirement, combined with globalization and technology advancements.
Benefits of PEOs for Small Business Growth
If you are on the fence about using an outsourced model to handle your payroll management, consider that there are many benefits of using PEOs to accomplish business growth. These include:
- PEOs specialize in services for small companies with “bare-bones” HR departments.
- Time consuming payroll and other employee-related services are reduced by the PEO provider.
- Payroll, employee benefit, and workers’ compensation claim management are more cost effective with a PEO.
New Report Indicates PEOs Sustain Small Business Growth
A powerful new report released by the National Association of Professional Employer Organizations (NAPEO) indicates that as many as 40 percent of small employers (with 10 employees or less) who use a PEO have employees enrolled in retirement plans. This is compared to the 13 percent of employers without a PEO who have employees enrolled in retirement plans. What this means is that small businesses who outsource their payroll processing to a PEO generally manage their aging workforce more efficiently for longer periods of time, allowing them to transfer knowledge and skills to the next generation of workers they bring on to grow the business.
Managing Human Capital Retention with PEOs
According to the NAPEO report, “a company’s ability to survive and profit increasingly hinges on the degree to which it can manage its employees more effectively than its competitors can manage theirs.” Small business administration relies on smart tools and resources that can streamline human capital through all stages of the employment relationship, from start to finish. When growing a small business in South Florida, for example, the challenge is presented to maintain a skilled workforce so that it can create profitability for the business – with an affordable method. The cost per employee for HR administration when using a PEO drops from $1,500 to $1,187, according to the NAPEO report. Over, time, these savings add up, leaving room in the HR budget to bring more skilled labor on board.
If you are still on the fence about using a PEO to grow your small business, why not consider an evaluation of services in order to fully educate your business on professional employer organizations? You’ll be able to find out more and discover how a PEO can help support your business growth.
SourceOne Partners: Find the Right PEO for Your Small Business
Are you interested in finding out if a PEO or payroll administration service is right for your small business? SourceOne Partners is a South Florida-based company that can pair you with the perfect PEO or payroll service for your business. Whether looking for PEO services or payroll management in South Florida (Miami, Fort Lauderdale, or Palm Beach) or in the surrounding areas of New Jersey, Pennsylvania and New York, schedule a free PEO or payroll analysis today. Contact SourceOne Partners by emailing us or calling 561-674-0748 to speak with a PEO expert today.