What Kind of Companies Benefit from PEO Services?

Almost all kinds of companies benefit from PEO services, largely on account of their flexibility and affordability. Small and medium sized businesses often experience strained resources and workforce. This affects productivity, increases operating costs (if the company manages its core and non-core tasks) and ultimately brings about reduced margins of profit or even loss. This does not help the organization grow or come out of its existing situation. These businesses are likely to benefit the most from PEO services.

Why PEO Services Are Necessary

If the extensive HR management responsibilities are outsourced, the business has a considerable portion of its responsibilities eased, which brings about massive resource savings. PEO outsourcing ensures that its HR responsibilities are handled more efficiently which results in greater motivation for its employees and more efficiency from them as well as streamlined functioning for the organization. The latter is also ensured because of the greater concentration the organization is able to keep on its core processes.

The partnership with a PEO company also helps the business in uncovering innovative solutions to various problems and in gaining an edge over competitors. This is because the experts offering PEO services belong to various professional fields and can utilize that wisdom to help your organization in various aspects, even beyond HR management. With PEO services, small and medium sized companies will also be able to compete against larger players.

Benefit Administration – an Example of PEO Outsourcing

A classic example of this is with regard to employee benefit services. Most small businesses would stay away from benefits and for a good reason – they just cannot afford it. There are also extensive administrative responsibilities involved here. But benefit administration services can really help. A PEO company can enable businesses to get access to competitively priced and uniquely attractive benefit plans. This is possible because of the PEO company’s association with major national insurance carriers.

Competitively Priced Benefits that Are Part of PEO Services

Employee benefit services by PEO companies include:

• Employee health benefits & insurance plans (PPOs, HSAs)
• Life insurance
• Employee assistance including work/life program
• Personal accident insurance
• Long term and short term disability
• Supplemental cancer, accident, hospital plans
• Flexible spending account plan
• Individual coverage
• Prescription drug plans
• Credit union
• Adoption assistance
• Educational assistance
• Retirement services including Individual Retirement Accounts (IRAs)

The advantages of offering comprehensive benefits are obviously great. It particularly helps increase the motivation and retention factor of staff and save on recruitment drives, while also helping to exert a considerable influence in the job market.

The PEO likewise helps in other areas of HR management such as payroll services, risk management, legal compliance, and recruitment and training. In all these areas you experience great cost savings. These advantages are great for any business. All kinds of companies thus benefit from PEO services.