What is a PEO?
A professional employer organization (PEO) is a full-service human resources management solution that includes payroll, taxes, HR technology, compliance & risk management, and employee benefits services. PEOs offer the infrastructure to cost-effectively manage human resources by outsourcing time-consuming and often complex administrative tasks, helping business owners reduce risks, increase efficiencies, and grow their bottom line.
Benefits of a PEO
Partnering with PEO can result in big improvements for your bottom line. According to the National Association of Professional Employer Organizations (NAPEO), companies that use PEOs grow 7-9% faster, experience 10-14% lower employee turnover rates, and are 50% less likely to fail. The ROI of using a PEO in cost savings alone is 27.3%.
When you join a PEO, you have access to:
- A proven business model regulated by state and federal agencies
- A dedicated team of HR experts who understand your business
- A voice on the other end of the phone when you call
- Robust yet easy-to-use technology for employers and employees alike
- Compliance with federal, state, and local employment laws
- Fortune 500-level offerings at competitive rates
How a PEO Works
A PEO joins its client in the employment relationship as a Co-Employer. This relationship allows the PEO to assume administrative responsibilities, negotiate on behalf of all its clients to secure competitive offerings, and share limited employment risks. While a PEO handles human resources on your behalf, you remain in control of day-to-day operations as a business owner.
With support from a team of HR experts dedicated to your business goals, here’s no loss of control when you partner with a PEO—just more time back in your day to run your business.
Employee Benefits and Economies of Scale
PEOs leverage economies of scale to negotiate better insurance rates with carriers on your behalf. Businesses benefit from this negotiating power, receiving access to desirable employee benefits and services traditionally reserved for large corporations. In addition to providing better insurance options and benefits packages, PEOs provide enrollment technology for benefits administration and help employees select the plan that’s best for them with confidence. Offerings include:
- Medical, Dental, and Vision Insurance
- Accident, Hospital, and Critical Illness Insurance
- Life and Disability Insurance
- Health Spending Accounts (HSA) and Flex Spending Accounts (FSA)
- Retirement and 401k Planning
- Identify Theft Insurance
Offering superior products and services can be a powerful tool for businesses to attract and retain top talent and bolster long-term employee satisfaction. Employers can demonstrate commitment to supporting their workforce’s well-being and financial security by providing various customizable coverage options. A Connectify HR PEO client enjoys access to all these benefits and more.
A PEO Dedicated to Your Business
If you’ve ever wondered if there’s a better way to manage HR, Connectify is your solution.
Connectify HR allows small businesses to improve productivity and profitability by simplifying HR, so you have the freedom to focus on what matters most–growing your business. With Connectify HR, you can confidently navigate the complex world of HR, knowing that you have a trusted partner by your side.
Call Connectify HR today (515) 207-0720 and schedule a free consultation with one of our local HR professionals.