The Many Advantages of Obtaining Employee Benefits Through a PEO Provider

For small business owners, negotiating competitive employee benefits while managing costs can feel like a near-impossible balancing act. But here’s the good news. Success is possible and you don’t need to go it alone.  The right Professional Employer Organization (PEO) can transform this once-daunting challenge into an opportunity. Via a PEO services partnership, small businesses can access corporation-sized benefit packages while simultaneously controlling costs and minimizing administrative burdens.

Increased Buying Power and Cost Savings

The most obvious and compelling advantage of obtaining benefits through a PEO is the substantial cost savings achieved through collective buying power. Rather than negotiating rates as a solo business, you become part of a much larger network that includes thousands of employees across multiple companies, opening the door for significant savings.

Access to Higher Quality Benefits

When partnered with a well-matched PEO solution, small businesses are often able to access better benefit packages, sometimes even rivalling those provided by Fortune 500 companies. Again, this can be attributed to bulk buying power. By creating a large network of multiple companies, PEOs provide access to competitive health insurance plans, dental and vision coverage, life insurance, disability insurance, and retirement planning options that would be incredibly difficult for individual small businesses to negotiate independently. It’s a good situation for employees and companies alike. Know what else? Comprehensive benefits packages often make the difference between landing top talent and losing out to competitors.

Professional Plan Recommendations

One of the most time-consuming aspects of benefits administration is researching, comparing, and selecting insurance providers and plans. PEOs can take this major burden off your to-do list by providing your company with dedicated benefits professionals who specialize in recommending the best plans for different types of businesses and employee needs.

A Streamlined Enrollment and Administration Process

The annual benefits sign-up season can easily overwhelm small business leaders. This is where a PEO provider can really save the day. They handle a lot of the work associated with the enrollment process and they help manage deadlines as well.

Beyond annual enrollment, PEOs also manage ongoing benefits administration including processing life event changes, handling COBRA administration, managing FSA and HSA accounts, and ensuring accurate payroll deductions. Offloading these critical, yet time-consuming tasks allows business owners to dedicate more time to core operations and growing the business.

Expert Support When Issues Arise

When benefits problems surface, having a PEO partner with established relationships and negotiating clout can make all the difference. Coverage questions and day-to-day benefits administration can consume significant time and energy when handled entirely in-house. As your HR partners, PEOs serve as powerful advocates who can resolve issues more quickly and effectively than individual businesses typically can.

In today's talent market, employee benefits often determine whether businesses can attract and retain the workforce they need to succeed. PEOs can help level the playing field by giving small businesses access to the same quality benefits packages that corporate companies offer, but at costs that fit small business budgets.

The combination of cost savings, administrative efficiency, and enhanced employee satisfaction creates a compelling argument far beyond the benefits function itself. For businesses looking to compete effectively for talent while controlling costs, partnering with a PEO for employee benefits represents a strategic advantage that can set them apart from competitors. 

Need to find the right PEO?

At BestFit, we can help you find the solution for your business needs.