Running a business comes with challenges—from payroll and compliance to hiring, employee disputes, and benefits administration. That’s where a PEO, or Professional Employer Organization, can make all the difference.
A PEO can help you reduce risk, save money, retain talent, and scale with confidence—so you can focus on what you do best: growing your business.
A PEO is a partner that helps small and mid-sized businesses manage essential HR and administrative functions. Through a model called co-employment, you retain full control over day-to-day operations and employee management, the PEO becomes the employer of record for tax and benefits purposes.
In short: You lead the business. The PEO handles the HR headaches.
PEOs like BBSI offer a broad suite of services that remove the administrative burden off your shoulders:
PEOs like BBSI can offer comprehensive support for every aspect of daily operations by surrounding business owners with a dedicated service team, which includes a business strategist, HR generalist, risk and safety consultants, payroll specialists, and recruiting specialists.
Partnering with a PEO is a great way for business owners to save resources spent on critical daily tasks that tend to pile up as the company grows.
Here are a few ways business owners save money by partnering with PEOs:
Since professional employer organizations serve multiple clients, they’re able to offer better rates for the services they specialize in. Businesses can save money by taking advantage of these lower rates, which they might not be able to access on their own.
PEOs specialize in HR functions. By outsourcing these tasks to a PEO, companies can reduce the costs associated with things like hiring, retaining, and training HR staff.
Since they’re skilled in HR, PEOs can also help businesses navigate the complex landscape of compliance, employment law, and HR regulations. This reduces the risk of fines and costly legal fees associated with non-compliance.
A PEO can handle payroll processing, including tax filings, which can reduce the risk of costly errors. Avoiding penalties for payroll-related mistakes will save smaller businesses money as they scale their operations.
A PEO can be a game changer for small businesses (SMBs) when it comes to employee benefits. Thanks to their large client base, PEOs can provide access to affordable benefits packages that allow them to compete with those of large corporations.
By aggregating multiple client companies, PEOs can exercise significant bargaining power when negotiating with healthcare providers. This means SMBs who partner with PEOs will generally have access to better rates and benefits than if they negotiated on their own.
The right PEO can allow you to offer your employees access to robust retirement options, including 401(k)s that may otherwise be reserved for the corporate giants of the world.
This goes beyond benefits; by investing in your team’s future, you’ll give them all the more reason to dedicate themselves to your company’s success.
PEOs like BBSI offer advanced HR management platforms that make life easier for everyone.
Leveraging technology means your employees have year-round access to benefit options, plan selections, and more through portals available on smartphones, tablets, and any device that’s convenient to them.
Navigating the labyrinth of employment laws and regulations can be treacherous terrain for business owners. A PEO can act as your trusted guide through this legal maze. With the proper expertise, you can not only survive but thrive in the complex world of HR compliance.
Here are three common challenges you’ll face when it comes to risk management and how an experienced PEO can help you overcome them.
Employment laws are in a constant state of flux. Keeping abreast of these changes can be a full-time job, and there isn’t any room for error. A misstep here can lead to penalties, fines, and even long-term reputational damage.
How a PEO Helps: A PEO will specialize in adapting to regulatory shifts and keeping watch for changes so you are up-to-date with new laws. They’ll keep you out of the legal jungle by helping you keep your business compliant.
Legal disputes can drain resources, damage your reputation, and pose a formidable challenge to small and medium-sized businesses with limited legal expertise.
How a PEO Helps: PEOs offer employment practices liability insurance (EPLI) as a safeguard against legal battles. In addition, they can provide legal support to help you defend your interests, saving you from financial and reputational fallout.
Employee turnover is always costly, especially when the threat of wrongful termination claims can escalate expenses and even affect business decisions.
How a PEO Helps: PEOs assist in every aspect of hiring. Through better recruitment, training, and retention, a PEO can help reduce employee turnover. In addition, they can provide experienced HR guidance to minimize the risk of wrongful termination claims.
Running a business demands all of you. Vision, strategy, and everyday operations all require an unwavering focus to succeed. Unfortunately, the gravitational pull of HR and other administrative tasks can anchor even the most ambitious leaders.
Here’s how a professional employer organization can free up your senior management to do what they do best.
HR paperwork can bog down even the most seasoned leaders, diverting their attention from the big picture.
Instead, you can rely on a PEO to handle paperwork for processes like onboarding or benefits administration. With the reassurance that every detail will be handled seamlessly, your leaders can feel confident to focus on other tasks.
Every business venture carries inherent risks. Managing them can either be a full-time job for your senior leaders or the daily task of your PEO.
PEOs can provide risk management strategies and EPLI to fortify your business against potential pitfalls.
Regardless of the importance of the job, tedious, time-consuming tasks can drain even the most competent leaders in your organization.
By letting a PEO handle these tasks for you, you’ll free your leaders to do what you pay them for, using their knowledge and skills to innovate, strategize, and drive your business forward.
If you have ambitions to grow your business, you’ll need a plan for how to scale.
Here are four ways a PEO can empower you to scale your workforce quickly with unmatched flexibility:
Employee Relations is a delicate dance that requires significant finesse to get right. PEOs can guide you in this dance, providing invaluable support in the following areas.
Conflicts are inevitable, and sometimes you’ll need a neutral third party to mediate between you and a disgruntled employee. PEOs can fill this role for you, ensuring a fair resolution and fostering a mutually beneficial relationship between you and your employees.
PEOs can help you design effective feedback mechanisms, ensuring employees are receiving timely, constructive input. Creating a culture of continuous improvement will benefit you and your employees in the long term.
PEOs can assist in conducting employee surveys to help you gauge sentiment, interpret results, and implement strategies to address employee concerns. A proactive approach will signal a commitment to employee relations and improve your work environment.
PEOs can help companies in any industry manage HR and payroll and streamline common administrative tasks that pile up as that company grows.
Here are four examples of industries in which companies frequently benefit from partnering with a PEO.
Selecting the right PEO is a critical step towards unlocking your business’s full potential.
You’ll want a PEO that understands your industry, offers a comprehensive service portfolio, and has a history of satisfied clients.
Look for a PEO who doesn’t just see themselves as providing a product but as a long-term business partner who is interested in your successful growth.
At BBSI, we know that every business, even those in industries we’ve worked in for years, has unique needs. We know that to help our clients succeed, they’ll need a dedicated team of professionals at their fingertips. That’s why we choose to connect each of our clients with a dedicated service team.
Our goal at BBSI is to support business owners in every aspect of their daily operations. That not only includes typical tasks like HR, payroll, and risk management but even strategy and long-term development.
Get a free business consultation today and start growing your business.