For small business owners, time is always one of the most valuable commodities. There is never enough of it and frequently, there are simply too many critical tasks to complete within the typical business day.
These important to-do items are often associated with managing and supporting the needs of a growing staff. At the same time, small business leaders are frequently filling multiple roles, leading them to quickly recognize the need to offload certain employee-focused tasks to ensure the organization remains focused on future opportunities and growth. This is where a professional employer organization (PEO) can become an invaluable asset. Through a co-employment relationship, your PEO can handle several essential, yet time consuming employee-related responsibilities, providing leaders with more time to focus on the bigger picture.
Of course, any PEO worth its weight can reduce the burden of basic, yet essential business functions. These include:
But that’s not all. There are several other areas where the right PEO partner can help a small company flourish, while avoiding a wide variety of pitfalls.
Failing to remain in compliance with state and federal labor laws can be a costly mistake. This not only requires familiarity with current regulations. Small companies also need to be aware of new requirements and employment laws as they are enacted. For example, if some of your staff members work remotely from other states, recognize that labor laws can frequently vary. This means that different rules can apply for two different employees, even if they perform the same tasks. Identifying the right PEO can help you proactively spot and address state and federal compliance issues, saving both time and money.
Depending on your business sector, your company may also face a variety of additional risks. These include employee injuries and lawsuits. Hiring the PEO that is the best fit for your organization, often provides you with access to a wide variety of experts who can offer guidance both before and after a crisis arises.
Frequent employee departures can have a serious effect on a small company’s bottom line. Not having the staff you need can lead to productivity losses and production delays. In addition, hiring and training staff is a costly process that can take up valuable employee and manager time. Because of the many staff benefits they provide, hiring a PEO can increase retention and greatly reduce employee turnover. In fact, businesses that partner with PEOs experience 10 to 14 percent lower employee turnover on average when compared to peers. It likely comes as no surprise that spending less time recruiting and hiring new staff can also have a major positive impact on the bottom line.
Here’s another impressive statistic. Did you know that small companies that employ PEOs tend to grow 7 to 9 percent faster than those that do not? This is the case for many reasons including the increased ability for company leaders to spend less time managing basic business functions and more time steering the ship and identifying new opportunities.
With over 500 PEO options in the U.S. alone, consider partnering with the experts at BestFit PEO Solutions to help identify the PEO partners that best match your unique small business needs. The benefits are likely bigger than you think.