How a PEO Adds Value to Associations and Membership

How a PEO Adds Value to Associations and Membership

Posted by HR Division of Propel HR on 11/11/21 3:00 PM
HR Division of Propel HR
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Posted on: November 11, 2021

PEOs provide a number of strategic advantages that can benefit professional and trade associations and enhance the value of membership.  

Professional and trade associations are membership organizations that come together for a common cause.  According to the American Society of Association Executives (ASAE), in the U.S., there are more than 60,000 associations that employ more than 1.3 million workers and represent $55 billion in payroll. 

Both professional and trade associations establish their own membership requirements and charge membership dues. Each association elects and is accountable to a board of directors, which in partnership with a paid staff, determines the strategic direction and ensures compliance of its operations.

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In general, professional associations are usually made up of individuals of a common profession, such as the American Dental Association and the American Bar Association, for example. The membership of a trade association consists of companies in a specific industry and includes businesses of all sizes. A few examples include the National Association of Home Builders, the American Small Businesses Association, and the American Advertising Federation.


Associations serve the interest of their members by creating programs, services, and other initiatives that benefit their members and the public.

AdobeStock_324876974_01One of the top reasons many companies join an association is to take advantage of exclusive services and special offers that may not be available to the general public. This is where a PEO can deliver significant value with benefits and perks, such as payroll processing, HR consultation, benefits administration, access to better benefits and more affordable health plans, risk management, and a number of other important HR-related duties that are necessary for running a business.

Because the PEO takes over much of the HR-related administrative tasks, employers have more time to focus on growing their business, and associations can focus on their mission and membership development. Benefits that PEO services provide include:

Access to Competitive Benefits and a More Affordable Health Plan.  Keeping and Attracting Top Workers as well as maintaining overall well-being are currently top concerns for employers. Studies have shown that businesses that improved their benefits packages reported higher employee performance, a more engaged workforce, lower turnover rates, and fewer missed workdays. Yet, due to costs, many small businesses often find high-quality benefits out of reach. 

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PEO's can help employers enhance their benefits by providing employers access to enterprise-level benefits, similar to those offered at large corporations, including comprehensive health plans at more affordable rates.

Strategies to Reduce Risks and Prevent Costly Compliance Violations. Partnering with a PEO is much like gaining access to a full-service HR division with a team of experts knowledgeable about employment laws and current with changing regulations and the latest filing deadlines.

AdobeStock_302682764_01In addition to federal laws, employers must also follow all state and local laws that apply to their business. These laws vary from state to state, which adds another level of complexity to compliance, especially for multi-state employers. A PEO can help national associations and their local chapters with guidance on compliance-related issues at every level. 


Ways to Lower HR-related Expenses and Increase the Bottom Line. From new regulatory reporting, record-keeping, and frequently changing filing deadlines, the HR responsibilities of employers continue to grow. A PEO can save significant time and money by identifying inefficiencies and developing strategies to streamline HR processes. 

Studies show that companies that work with a PEO:

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Expert Guidance During Growth and Change. Just as having an advisor brings a new perspective on business decisions, partnering with PEO provides the added confidence to help employers make strategic decisions during change and growth. During the pandemic, employers faced much uncertainty.

AdobeStock_399562563_01For example, associations had much of their revenue tied to in-person events and trade shows. With that revenue no longer available, association executives were forced to make difficult decisions, such as reducing and furloughing staff. PEOs gave employers an edge that helped prevent disruption and minimize the impact of a pandemic that rocked businesses nationwide.


With the support of their PEO, employers were able to navigate a flurry of new and changing workplace challenges, such as staff reductions, remote work, payroll processing, employee benefits, Covid-related regulations, PPP loans, and more.

A new study shows that help has paid off. According to a recently released white paper, PEO Clients in the COVID-19 Pandemic: Follow-up Analysisthose businesses working with a PEO demonstrated better results overall and, today, are in a stronger position for long-term success.

Relative to comparable small businesses, the businesses experienced:

  • 58 percent less likely to have permanently closed
  • 32 percent less likely to have seen an overall negative effect on business from the pandemic
  • 82 percent more likely to have business operations back to normal (or better)
  • Employment growth by 6 percent since early 2020 (compared to a 1 percent decline for comparable small businesses)
  • Rate of employment growth over the last six months that is 81 percent higher
  • 18 percent more likely to have had their 2020 PPP loans forgiven
  • 71 percent more likely to have received a PPP loan in 2021


Associations are legal entities and share some of the same challenges and goals as small businesses. From managing payroll, providing access to better benefits, to saving money and reducing liability, a certified PEO, like Propel HR, can deliver value-added services and help associations and businesses grow. 

Choosing the correct PEO for a small business is important to being a profitable business.

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 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 new website at

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HR Division of Propel HR

The HR Division is made up of a team of professionals with a vast level of experience and HR expertise, assisting organizations of all sizes and within a wide variety of industries. They readily partner with clients to address strategic and compliance challenges surrounding the employment life-cycle and the ever-changing laws that regulate it. Inquire below about how they can help you!