At What Point Can Your Business Benefit From a PEO?

Posted by Employer Flexible on April 2, 2018
Employer Flexible

A Professional Employer Organization (PEO) like Employer Flexible is a third-party firm that manages a company’s administrative management tasks. Tasks such as employee benefits, payroll, and human resources are crucial to the success of any business. With a PEO, business-owners have more time to take care of what really matters: the bottom line.

Hundreds of thousands of small businesses are already backed by a PEO, and there may be a point in the evolution of your small- or medium-sized business where you decide to make the leap as well.

John Orth, VP at Employer Flexible, is in charge of business development and has years of experience in pairing businesses with PEOs. “Business owners don’t get into business to do paperwork,” Orth says. “In order to generate revenue, small- and medium-sized business owners need to focus on their goods or services, sales, and innovation that drives growth. Let a PEO take care of the administrative overhead and compliance required when you have employees.”

Here are 4 signs your business could benefit from a PEO:

  1. You employ more than 10 people

PEOs administer various business aspects for companies of all sizes. Whether you employ 2 or 2,000 employees, it’s beneficial to have a third-party organization assist in employer administration. The more a company grows, the larger the workload for the Owner or CEO in charge. Correspondingly, the complexity, compliance, and hassle of employee administration grows as well. If you would benefit by spending less time focusing on administration issues and more time focused on revenue-generating activities, see what a PEO could do for you and your business.

  1. You want to offer affordable benefits to your employees

Through a PEO, employees of small- and medium-sized businesses gain access to corporate-type employee benefits such as: health, dental, vision and life insurance, 401(k) plans and more. When partnered with a PEO, businesses tend to see a lower turnover rate and higher employee engagement largely in part to the benefits offered. Without a PEO relationship, a lot of small businesses would not be able to afford or manage these types of benefits for their employees. And, as always, you’ll save time by not dealing with the administration of those ever-changing benefits that work best for your business and employees.

  1. You don’t have in-house HR expertise

Running a business while managing employees is a lot of work. As a CEO or business owner, mediating employee situations in the workplace takes your focus away from impacting what matters: your bottom line, not to mention the emotional toll it takes on you. As a small-business owner, you most likely aren’t an expert at handling sensitive human resources issues. Additionally, you might not be in a financial position to hire an HR generalist or manager. In this instance, a PEO is the perfect fit. With a third-party HR consultant aligned to your business, any workplace situation can be investigated and resolved by engaging your PEO’s HR expert to work the case. Employer Flexible HR consultants are available to tackle employee problems or issues a business may have in the workplace. Our consultants will handle tasks such as assisting in employee termination, investigating sexual harassment allegations, employee development and much more. If you do have an in-house HR Manager or Office Manager, adding a PEO will free that person up to spend time on more strategic initiatives for your business.

  1. Processing payroll internally takes time and creates unnecessary risk

From onboarding new employees to ensuring they get paid on time, outsourcing your company’s payroll processing will save you and your staff time and lower your risk as a business owner. Payroll is one more responsibility that a PEO like Employer Flexible will take off your plate. PEOs will process your payroll, file and pay all required payroll taxes, submit all required reports, including the various state unemployment taxes and reports, handle W-2s, etc. A PEO accepts the responsibility to handle these, so you don’t have to worry about anyone being out sick, on vacation or — worse yet — you not taking a vacation because you or your spouse has to run payroll. Employer Flexible payroll specialists have working knowledge regarding the complexities of ever-changing regulations that could potentially affect your business. Having a third party process payroll will bring any hidden errors to the surface and ensure that all compliance boxes are checked.

Whether your business is growing, downsizing or just needs help focusing on what matters, a Professional Employer Organization is an invaluable asset that will take your management and productivity to the next level. After all, you got into business to provide great products and services to the market; not to handle administrative tasks that slow you down.

Questions? Visit us at or give us a call at 1.866.501.4942.


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Topics: Productivity, PEO, Human Resources, HR