A PEO, or “professional employer organization”, is a full-service extension of your HR department. PEOs help small and mid-size businesses manage critical HR functions like employee benefits, payroll, compliance, and HR management. With the support of a PEO, small and mid-size businesses (SMBs) are able to reduce costs, increase employee satisfaction, and dedicate more time to their core business. On average, small businesses that partner with a PEO grow 7-9% faster than SMBs that opt to handle everything on their own. Keep reading to learn three ways a PEO can help your business foster a culture that encourages employee productivity and growth.
Take Better Care of Your People
According to SHRM, over 60% of employees consider medical, dental, and other benefits to be important factors contributing to their overall job satisfaction; however, offering top-tier employee benefits often seems impossibly expensive for SMBs due to their relatively small employee numbers. This tends to lead to higher group rates for employee benefits like premium medical insurance plans, making it difficult for SMBs to compete with the kinds of employee benefits packages offered by larger businesses.
A PEO, on the other hand, combines the purchasing power of all its clients to access the best possible rates for a diverse range of employee benefit plans. Partnering with a PEO enables SMBs to access those same discounted rates, reducing overall costs while making it possible to offer employees better coverage options.
Make a Commitment to Diversity, Equity, and Inclusion
Research from McKinsey & Company shows that gender-diverse companies are 15% more likely to outperform their peers, and ethnically diverse companies are 35% more likely to do the same. The business case for greater diversity, equity, and inclusion efforts is clear, but data indicates that reality hasn’t caught up yet: according to research conducted by Accenture, 68% of leaders feel they create empowering environments in which employees can be themselves, raise concerns, and innovate without fear of failure — but only 36% of employees agree.
Fostering a more inclusive environment requires a staunch dedication to uncovering and resolving the inequities experienced by marginalized groups. This starts with a commitment to learning and understanding the impact of systemic and institutional racism, as well as unlearning the biases that perpetuate discrimination of any kind.
It can be a challenge for any businesses to figure out how to navigate such sensitive issues on their own. By partnering with a PEO, SMBs can rely on the support and expertise of certified HR professionals to help guide their own diversity, equity, and inclusion policies. A PEO might also provide access to educational resources and referrals to local training programs that may help.
Move Toward Innovation
As technology becomes a more prominent part of everyday life, employees expect convenient digital solutions for routine work tasks as well. From tracking time to managing their PTO, today’s employees want digital self-service tools that simplify burdensome procedures and make it easy to stay connected anytime and anywhere.
Replacing legacy systems with new technology can seem daunting, but a PEO can help make the process as smooth as possible. With a PEO’s help, SMBs can choose from a wide range of HR management and productivity platforms to streamline operations, reduce administrative strain, and improve the employee experience. A dedicated team of HR specialists would then work with your business to figure out the best technology solutions to resolve specific pain points and custom configure the platforms to meet your business’s unique needs.
It’s hard to run a business, but you don’t have to do it alone. Partnering with a PEO can help reduce costs, streamline operations, and propel your business toward greater success.
PrestigePEO is dedicated to continuously improving critical HR functions like payroll, employee benefits, legal compliance, and more for our clients. Contact PrestigePEO today to learn more about all of our service offerings.