5 Problems a PEO Can Solve for Your Small Business This Year
It’s a new year, and you’ve got big goals for your business. Maybe you want to:
- Grow your client portfolio
- Open a new location
- Boost your profits
- Expand product or service offerings
- Hire a CEO or CFO
- Flesh out your sales team
The bottom line is: you want your business to succeed. You want to achieve more this year than you did last year.
But you’ve got a problem. You don’t have time to create a marketing strategy, screen and hire new staff, pitch your services, or develop a new product. Why? Because you’re stuck in your office shuffling HR paperwork.
We get it. HR is a cost center. It’s necessary, but it’s a huge time drain.
But it doesn’t have to be that way.
What if you could hand off your small business HR challenges to someone else?
Imagine what it would feel like to put HR on your “done” list – for good. No more tax forms, no more compliance research, no more workers’ comp claims or payroll responsibilities or OSHA regulations. All of it, handled.
If that sounds like a dream come true, it’s time you had a chat with a PEO. Professional Employer Organizations (PEOs) exist to take the burden of HR off your shoulders so you can focus on the critical needs of your business. Here are five problems a PEO can solve for you starting today:
- Stalled growth– Many small businesses see their growth stall because leaders don’t have the time to invest in strategy. Small business owners often spend up to a full day each week handling HR responsibilities. You need more hours in your week to create and execute the plans that will boost profit and grow your business. With a PEO, you can take back that day and invest it in growing your business.
- Fear of business failure– Failure rates for small businesses are daunting, but did you know that a PEO can help you beat the odds? According to the National Association of Professional Employer Organizations (NAPEO), you’ll be 50% less likely to go out of business if you use a PEO. That’s because PEOs help you avoid fatal tax and compliance errors, meet all employee protection guidelines, and stay on top of all the detailed HR requirements for your industry. They also free you up to focus on growing your business so you can ramp up productivity and profitability.
- Compliance violations– HR mistakes and compliance violations can result in hefty fines. But guidelines change so quickly that it’s tough to keep up, especially if you don’t have an HR person on staff to help. A PEO will help you manage that risk and keep your business compliant with OSHA, the EEOC, and other state and federal guidelines.
- Lack of skilled HR personnel– Do you worry that you don’t have time to do HR the way it should be done? That you’re hitting all the essentials, but can’t invest in HR the way you want to? Do your employees have questions you don’t have the knowledge or time to answer? According to SHRM, 70% of businesses with fewer than 50 employees delegate HR to someone with no experience. Only 20% of these people feel confident in their ability to handle the responsibilities of HR without mistakes. With a PEO, you work with people who make HR their business, and you’ll never have to worry about payroll errors, missed compliance deadlines, or inaccurate tax filing.
- Inability to hire and retain quality talent– This one may come as a surprise to you. How can outsourcing your HR help you hire and retain a more talented workforce? The truth is that workforce experiences – starting even before a candidate is hired – have become central to the issue of job choice and retention. In a market where candidates can afford to be choosy, they want to work somewhere that makes work a positive experience. From an HR perspective, that includes an engaging candidate experience with excellent communication, career advancement opportunities, positive workforce management, and up-to-date technology that makes it easy to find answers to questions. In addition to helping with all of these things, many PEOs also offer recruitment services, recruitment technology, and support through prickly issues like workers compensation claims.
Your small business problems, solved.
Yes, it's that simple. In fact, small businesses that work with a PEO not only stay in business longer, but they also grow 7-9% faster and have 10-14% less turnover than those that try to go it alone. Imagine what it would be like to have someone in your corner, someone who could take over the time-consuming parts of HR so you could implement a new strategy or open a new location. What if, finally, you had time to pursue the growth initiatives you've been talking about?
If you're ready to take the next step, we're here to help! Check out our PEO Matching Tool to find your perfect PEO match today!
