What Companies Use a PEO?

|What Companies Use a PEO?
What Companies Use a PEO?2018-05-23T08:33:04+00:00

Companies of all sizes and within almost every industry benefit daily from the “co-employer” services of a Professional Employer Organization, or “PEO”.

In most businesses, time directly equates with money, and every minute spent dealing with administrative tasks affects the bottom line. If this is the case with your business, a PEO may be precisely what you need.

For example, a small heating and air conditioning company may have 15 employees, including the owner. If all of them regularly go out on service calls, then getting tied up with employee recruiting and hiring, payroll, workers comp administration and choosing desirable employee benefits means less revenue to the business.

The following businesses are prime examples that are already benefiting from a PEO’s services:

  • Contractors and Construction Companies
  • Framing/Trim Carpentry
  • Roofing
  • Masonry/Concrete/Drywall
  • Painting
  • Daycare Facilities/Schools
  • Trucking
  • Property Management/Building Maintenance/Janitorial
  • Auto Repair/Body Work
  • Landscaping/Tree Trimmers
  • Hotels/Restaurants
  • Home Healthcare/Physicians

Is My Business the Right Size for a PEO?

Businesses of all sizes are burdened by time-consuming administrative challenges. Companies find that outsourcing to a co-employer is useful, regardless of being a small, medium or large organization.

When a PEO gets involved, these are the major resources they offer that are most beneficial for companies, based upon that company’s size:

Small Companies (<50 employees):

  • Lower worker’s compensation insurance pricing
  • Only have to pay one bill that covers all their employer-related liabilities
  • Competitive health insurance rates

Mid-sized Companies (50 – 249 employees):

  • Lower worker’s compensation insurance pricing
  • Competitive health insurance rates
  • HR management services, especially if no HR person or department currently exists

Large Companies (250 or more employees):

  • Lower worker’s compensation insurance pricing
  • HR consulting to assist their HR department
  • Competitive health insurance rates
  • Outsourced IT services with access to state-of-the-art computing systems at a lower cost

As the above list indicates, larger companies also typically find a PEO’s services to be useful, and this is especially true when they operate locations within multiple states or other countries.

Based on market research most all companies, regardless of their size, that outsource at least some of their administrative tasks to a PEO realize these benefits:

  • Reduced employee turnover rates
  • Higher company growth rates
  • Lower HR administration costs

Could Your Company Use a PEO?

Time equals money when you’re running a business. The smaller the company the more productivity loss due to administrative tasks. Productivity loss impacts your bottom line.

A PEO exists to take on some of that management burden so that you can focus on the important task of meeting your business objectives. If you are a running a business and are currently frustrated by all the lost time your employee paperwork, HR obligations and payroll preparation are costing you every week, Alpha Business Solutions can help you reduce some of those burdens, get you back on track for growing your business, and restore your peace-of-mind.

To request more information on the various cost-saving PEO solutions that Alpha Business Solutions can offer, or to promptly get a no obligation quote for these services, please contact us now.

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