PEOs are in the Business of Small Business

PEOs are in the Business of Small Business

Posted by HR Division of Propel HR on 5/22/24 2:45 PM
HR Division of Propel HR
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Posted on: May 22, 2024

PEOs play a vital role in helping small businesses across the country thrive and survive. 

Choosing the Right PEO

Helping Small Businesses and Their Employees. Professional Employer Organizations (PEOs) provide payroll, benefits, workers’ comp, regulatory compliance assistance, and scores of other HR services to more than 208,000 small and mid-sized businesses across the U.S., collectively employing more than 4.5 million people. 

AdobeStock_541500522_01About 17% of all employers with 10 to 100 employees in industries such as software, construction, media, clothing, finance, and dozens of other sectors spanning every pocket of the country, not to mention mom-and-pop businesses on Main Street, partner with a PEO.  Put simply, PEOs are in the business of small business.

An Ally and Champion for Small Businesses. During good times, PEOs are the invisible hand that handles the busy work. And during bad times, PEOs are the vociferous crusaders fighting for what is right. For more than three years, the PEO industry has led the charge to clear the IRS’s backlog of Employee Retention Tax Credit (ERTC) claims. Because that’s what PEOs do: support the backbone of our economy and help them navigate government red tape.

During the darkest days of the pandemic, PEOs were on the frontlines as a partner, invested in helping employers survive as they faced layoffs, decimated sales, closure, and increasing disconnect with their local communities. PEOs helped businesses navigate the loan forgiveness process, support their employees, and get to a place where they knew they could rebuild and emerge stronger than they were pre-pandemic. 

📣PEOs Provide Services to 17% of all Employers with 10-100 Employees. 

Access to Enterprise-Level Benefits. PEOs provide small and mid-sized businesses with access to essential services, such as cutting-edge technology and Fortune 500-level benefits such as 401(k) plans, health, dental, life, and other insurance, dependent care, and other benefits they might not typically receive as employees of a small company. 

AdobeStock_617732208_01Among businesses with fewer than ten employees, those using a PEO have more than three times greater participation in a retirement plan than employees of businesses that do not use a PEO. For businesses with 10 to 49 employees, 52% of PEO client employees have a retirement plan, versus 23% of companies that do not work with a PEO. Benefits like this allow small businesses to punch above their weight, grow faster, and experience lower employee turnover. 

Less Paperwork. More Time. PEOs save time by taking care of administrative and HR-related tasks, allowing businesses to focus on their businesses. 

Link #1Link #1Link #1Link #1➡️➡️Read More:  3 New Employment Laws that Could Impact Your Business

Compliance Know-How. Over the last 12 years, the PEO industry has quadrupled in size as the regulatory landscape gets increasingly complicated and more businesses turn to PEOs for help. And for good reason. PEOs are knowledgeable in employment laws and stay current with changing regulations, including labor laws and regulations governed by the state where employees work, not just where a business is based. Businesses that engage with a PEO have access to a whole team of experts who can help mitigate the vulnerabilities that put employers at risk.

AdobeStock_661343569_01More Productivity. Better Profits. By providing payroll, benefits, and HR services and assisting with compliance issues under state and federal laws, PEOs help small businesses improve productivity and profitability, so they can focus on their core mission, and grow.

📣Businesses that use PEOs grow 7 to 9 percent faster, have employee turnover that is 10 to 14 percent lower, and are 50 percent less likely to go out of business than companies that do not use PEOs. 


Focus On What You Do Best. And Leave the Rest to Us. An IRS-certified PEO, Propel HR partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. If we can help you, just give us a call or visit our website at

Choosing the Right PEO

PEO Week Social Image - E12About National PEO Week. National PEO Week highlights the important contributions of the PEO industry, which provides payroll, employee benefits, compliance assistance, and HR services to hundreds of thousands of small and mid-sized businesses that employ more than 4.5 million people. National PEO Week has been officially recognized in the federal Congressional Record and by the National Day organization, which approves only 30 requests for official designations out of the 25,000 applications it receives each year. For more information , visit


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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!