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Why Smaller Companies Should Use a PEO

21 Sep


Most people assume PEO partnerships are for large companies only. In reality, many small to medium-sized companies find extreme benefits in working with a PEO. According to NAPEO “small businesses that use PEOs grow seven to nine percent faster, have 10 to 14 percent lower employee turnover, and are 50 percent less likely to go out of business.”[1]

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Health Insurance at Lower Rates
With rising healthcare costs being a constant concern, small to medium-sized companies are relying heavily on their PEO to gain access to quality health insurance at rates more reasonable than those available via small group plans outside of a PEO environment.
Commitment to Employee Satisfaction
Rated highest among companies who have PEO partnerships, employees feel that these companies deliberately take the right steps toward positive engagement and delivering on promises made to improve the employee experience as a whole. General comments from employees of organizations with PEO relationships are that jobs are designed well, there are adequate development opportunities, and training is available both to help employees excel in their current role, and prepare for their next promotion.
Access to Voluntary Benefits
Small and medium-sized employers are frequently outfitted with a one-size-fits-all employee benefit plan. PEO partnerships open the doors to a variety of voluntary benefits for small clients, including pet insurance, identity theft, telehealth programs, and home and auto insurance. Instead of trying to fit your square peg in a round hole, rely on your PEO to provide options for your employees that will fit their individual needs.
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[1] https://www.napeo.org/what-is-a-peo/selecting-a-peo/why-use-a-peo

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