When you're running a business, it's easy to overspend. Here's how a PEO can cut costs in six important areas.
HR Administration. From payroll processing to filing taxes and managing employee benefits, the cost (and time) of running your business's day-to-day activities, especially HR-related matters, can add up, demanding more than you initially realized. Outsourcing time-consuming HR-related tasks to a PEO is one way to significantly reduce costs. Studies show that companies that partner with a PEO see a 21% savings in HR administration alone.
For example, according to a report conducted by the National Association of Professional Employer Organizations (NAPEO), PEOs provide access to more HR services at a cost that is close to $450 lower per employee compared to companies that manage their HR services in-house.
Employee Benefits. For small businesses, chances are you're competing with large companies that can offer competitive benefits and perks to their employees. By partnering with a PEO, employers can offer top-rated health insurance plans and enterprise-level benefit packages, including health insurance and other perks similar to those offered at large corporations. This is because of a PEO’s ability to group employees of small businesses into one pool to negotiate better health plans at lower rates. There's also valuable time saved by assuming administrative responsibilities for benefits administration, including enrollment, claims processing, and addressing regulatory compliance.
➡️➡️Link #1Read More: HR Issues that Cost Your Business
By working with a PEO, your business gains access to an entire team of experts who are current with changing labor laws and filing deadlines and can help protect your company from compliance risks - especially valuable for businesses with employees in multiple states.
The Unexpected. With extensive experience working with diverse companies across various industries, PEOs provide valuable insights and guidance to help businesses prepare for and navigate through unexpected events and weather periods of economic uncertainty.
For example, during the pandemic, PEOs helped businesses survive with guidance on allocating labor and resources for the short- and long-term, support on payroll processing, employee benefits, and leave administration. According to NAPEO study, businesses working with a PEO were 32 percent less likely to have experienced an overall negative effect on business and 82 percent more likely to have business operations back to normal (or better) than similar small businesses that didn’t have a PEO partnership.
➡️➡️Link #2Read More: How to Save More and Get More HR Services
Because you pay for only the services you need, the cost to work with a PEO is often less than the cost to expand your HR department. In addition, there are also savings in terms of increased productivity and efficiency. Outsourcing non-core functions allows your in-house HR team to focus on your business and get more done. In terms of revenue and performance,
Are you paying more than you have to? When you’re sidetracked by juggling time-consuming tasks in multiple areas of your business it’s challenging to step back and find ways to spend less. Where do you begin? That’s where a PEO can prove to be a valuable business partner. From access to better benefits, compliance protection, and expert guidance on improving HR efficiency, the advantages of working with an IRS-certified PEO, like Propel HR, mean controlling costs, reducing expenses, and leveraging all the money saved.
About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. Visit our website at www.propelhr.com