PEOs handle the HR function for organizations, including employment, compliance, payroll, benefits and more.
■ Research shows that organizations in a PEO grow 7% to 9% faster.
■ They also have 10% to 14% lower turnover.
By outsourcing HR functions, small business leaders can make sure their employees have the benefits and resources that might otherwise only be offered by larger businesses, helping leaders retain their employees.
Take one benefit of using PEOs, for example: remote work. Organizations have seen employees move across state lines, and with that comes compliance needs. That includes:
■ Registering as a business with
■ Following local and state laws around pay and benefits.
Getting it right is not only important to the business, but it’s important for the employee as they are your most valuable assets.
Working with a PEO ensures that leaders can focus on doing things the right way for their business in a timely manner. PEOs can provide the tools leaders need to connect with their employees to understand what values are important to them. How does the business want the values its shares with its employees shown to its customers?
Employees are the face of an organization, and can be its biggest brand asset. Most business leaders want to focus on retaining that asset, so they need to think about how they are investing in their employees. A PEO enables them to understand what the current views of their employees are. Staying aware of employee trends and attitudes can help business leaders make adjustments that will help retain their top performers.
Having this insight and knowing the company’s direction can help leaders build for the future. It can ensure that the workplace is one in which employees want to be, that they feel taken care of, and that they feel like their work matters. In turn, employees will take those values and make customers feel more valued at the business, pushing it towards growth.
About the Author: Kristen J. Appleman is senior vice president and general manager at ADP TotalSource® – the largest Professional Employer Organization (PEO) in the US. In addition, Appleman serves as Chair of the Board for the National Association of Professional Employer Organizations (NAPEO). She has more than 20 years of experience in HR and outsourcing.
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