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Advantages of Working with a PEO

Wednesday, September 30, 2020 2:49 PM | Denise Downing (Administrator)

Submitted by E3HR

Today’s environment is challenging to say the least. The business philosophy in today’s climate has turned into a real all hands-on deck mentality. This has led to a workplace scenario that we have never faced before and, hopefully, will never face again.

Considering the pressures of maintaining, let alone growing, small businesses is as acute as ever and overworked employees can be detrimental to the success of each staffing agency in the fast paced and dynamic world of employee leasing.

Using a PEO or Professional Employer Organization has some very critical advantages for staffing companies. This allows the company to focus on the core business of growing the client base and managing the daily placement of their employees.

The average small business, that partners with a PEO, realizes an 8% growth in profitability based on a nationwide survey conducted by The National Association of Professional Employer Organizations (NAPEO).

There are many advantages, but we will focus on just three in this article:

  1. It reduces the amount of HR related and administrative tasks the business has to handle in house. This is huge for a Staffing Agency when considering the numerous compliance issues, unemployment claims and multi-jurisdictional regulations and requirements. In addition to processing payroll,these tasks would be managed by our PEO and be removed from your company’s workflow. Missing or misunderstanding a new regulation can land you in a lot of hot water, especially if that mandate is in a sector such as healthcare or labor laws. You can find yourself saddled with fines and administrative orders for even minor mistakes.

    Our professional Compliance Department is current on rules and regulations, and we be there to support your business with implementation of the necessary guidelines while keeping them current and relative.
  2. You are getting creative, quality and cost effective underwriting on the workers compensation policies.  Staffing Companies battle with timely and expensive claims administration that can cost thousands every year.

    E3 underwrites your business to meet your current business, as well as promote future growth. We will get to know your business and understand the codes and the nature of your locations. It is important that claims are handled quickly and efficiently in the most economic manner. In today’s world, it is critically important to stay up to date with all safety regulations and employ the use of safety consultation and plans that result in cost containment and earnings predictability.
  3. You are getting high quality benefits for a lower cost.  A PEO can leverage the number of employees it has in all industries to bring the purchasing power that most small businesses never get an opportunity to realize.

There are a lot of benefits to using a PEO. For the business owner, knowing you have a partner company looking out for your best interest and handling the day-to-day administrative tasks so you don’t have to worry about them can be a path to huge success. Having someone to turn to when you have questions about compliance and regulations can save you time and ultimately money. If you are a staffing agency looking to grow, hiring a good PEO can start you on the right path.


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