One major reason is costs savings. PEO consultants have helped companies find PEOs that saved our clients up to 40% on their annual health insurance premiums due to the economies of scale of the PEO. Each of the PEOs that we work with has their own master health insurance policy with their own premiums, and because the PEO has tens of thousands of employees under their umbrella, they get access to premium benefits and pricing that a company with even 300 employees wouldn’t have access to.
Partnering with a PEO also allows you to focus on what you love most: your customers! Using a PEO helps businesses grow on average 9% faster than companies who do not. Your time, energy, and focus are centered on the growth of your business, and as your business grows, so will your needs for an HR department. Your PEO can take care of this, by acting a co-employer in order to assume most of these responsibilities, as well as employee liability. Your company retains the responsibilities directly related to operations, sales, and production.