5 Reasons To Use A PEO Company To Manage Human Resources

Professional Employer Organizations have become almost a necessity to the modern business, providing services and benefits that many companies (especially small businesses and startups) wouldn’t otherwise have access to. A good PEO company can make your entire business more streamlined, and help to drive more qualified candidates to your business. If you’re in the Empire State, you can use a list of the best PEO companies in New York. Otherwise, keep reading to learn about the five reasons to use a PEO company for your business.

Lower Turnover

Turnover affects businesses in the worst way; they are in constant need of qualified candidates, and cannot seem to keep anyone on the payroll. High turnover rates can be due to a number of things, but the HR department is certainly one factor. If your HR efforts are less than admirable, you are likely scaring off your employees before they’re ever integrated into the business. With uncertain terms of employment and poor training, your new employees will not feel confident in their place in the company or about their position’s requirements.

With a PEO service, you’ll find that turnover rates drop dramatically thanks to the focus on HR resources. Often, small businesses do not have the right resources for a great HR department, which is unfortunate because it is so essential to a successful business. A PEO service is essentially an outsourced HR department. You will still be in compliance with state, local, and federal laws, but experts will handle all things HR-related so you can run your business. Employing a PEO service for your business can drastically improve your turnover rates.


The best part about PEO services is their affordability. In this case, the entire HR department will essentially be a separate entity from the business. You will not need to pay for HR staff, extra equipment, or more office space. All of this can add up quickly, becoming a burden on the business. PEO services are significantly more affordable than an HR department’s salary requirements, making them a favorite among small businesses.  You’re likely not bringing in millions of dollars per year in revenue yet, which is why outsourcing only makes sense. When you don’t have the financial resources to do it yourself, you need to find a service that can offer expert guidance and service for a price that won’t leave your business drowning in debt. Many businesses look to hire a PEO service simply based on their affordability.

Better Training

PEO services can improve training for your business. Training is an essential component of not only reducing your business’s turnover rate, but also improving operations and ensuring you’re making the most out of those qualified candidates. Even the most qualified employees need some training in order to acclimate to your work culture and learn your business’s methods.

With good training, you also reduce the risk of injury in manufacturing or other dangerous environments, and thus further protect your business from legal ramifications of such injuries.  Training helps an employee find his or her place in the organization as well, and makes your company’s expectations more clear. A PEO service can handle training for you, focusing on a higher-quality training regimen instead of saving time by working as quickly as possible. Better training is advantageous to everyone in the company. Consider hiring a PEO service to improve your training practices.

Increased Compliance

If you’re struggling to keep up with local, state, and federal compliance, a PEO service can ensure you’re on track and not being penalized. Whether it’s tax codes, filing requirements, labor laws, or any other government-regulated compliance issues, rest assured everything is handled by your PEO service. You won’t need to trouble yourself any longer or wade through the deep and confusing water that is government compliance.

Staying in compliance ensures that not only the business as a whole is safe, but also the employees working within it. Compliance isn’t something that any business should overlook, as it can end up costing you plenty of money and trouble down the road. Outsourcing your HR department to a PEO service will save you time, money, and effort for years to come. Consider how a PEO service guarantees your documents are constantly in compliance with legal and financial regulations.

More Employee Benefits

PEO services can source the best insurance and benefit packages for your employees. Operating as a small business can mean that you are unable to offer the competitive benefits packages that would attract the right candidates to your company. Benefits attract qualified candidates, increase loyalty among employees, and make workers feel satisfied with their job; all of which are important to improving the overall mood, morale, and confidence of your workforce. PEO services have access to benefits that standalone businesses couldn’t otherwise access. Some of the best insurance companies work with professional employer organization services, and the rates are far better than individual business rates.

Whether you’re a startup or a well-established small business, using a PEO service can save you not only time, money, and effort, but also create a much more loyal, well-trained, and confident workforce that you can use to improve your company’s overall productivity. They’re affordable, versatile, and will make sure you stay in compliance to avoid any fees or penalties from government agencies. If you are interested in the reasons to use a PEO company, consider the points mentioned above.

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