What is a PEO and How Can it Help Your Business

A PEO relieves burdensome HR work from small business owners and helps lower employee turnover and helps a business grow faster. Get the details in this video.
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As a small business owner, if you feel like your workday never ends, it’s probably true. Studies show people who run smaller companies work far more than the national average. Day in. Day out. And as your company grows, you might not see an end to that cycle.
Sure, your small business is a labor of love. But there’s a smart way to stop working around the clock, drowning in paperwork and lugging around responsibilities that are outside your expertise. By outsourcing tedious human resources tasks like payroll, benefits, risk management and human resources to a PEO, you’ll free up valuable time. Plus, when smaller companies partner with a PEO like Axcet HR Solutions, they grow 7 to 9% faster, have 10 to 14% lower employee turnover and are 50% less likely to go out of business than their peers who don’t use a PEO.
So, what is a PEO? Short for professional employer organization, a PEO provides comprehensive HR solutions to small and medium-sized businesses through a co-employment relationship. This is a true partnership, where you and the PEO share employer responsibilities.
Your employees will have an employment relationship with both your company and the PEO, allowing the PEO to become the employer of record. This enables the PEO to take over the filing of payroll taxes.
The PEO also becomes responsible for health care benefits administration, risk management, payroll, workers’ compensation and certain human resources functions to help keep your company compliant with federal and state employment laws. You keep full control over all core business functions, including direct employee supervision and management of employee work.
When you partner with a PEO like Axcet, your employees gain access to Fortune 500-style benefits at an affordable rate. For some business owners, this alone is what first motivated them to seek out a PEO. Through co-employment, the PEO can combine its clients’ employees together into one large group. This allows the PEO to get access to benefits packages similar to those large corporations get at some of the most competitive rates available. This saves you time and money, increases employee retention and makes your small business more competitive when you recruit talent.
Sometimes, small business owners have misperceptions that make them hesitant to use a PEO. They fear they’ll lose control of their employees or be required to replace their current HR manager with the PEO. And, as daunting as it is to process payroll alone, handing it off to someone else scares some business owners, too. Or they may be afraid their employees won’t like the change.
None of these perceptions is accurate. A PEO works to support small and medium-sized business owners and their employees by bringing knowledge, helping hands and peace of mind. PEOs like Axcet are used to working directly with HR managers, keeping them up to date with complex, ever-changing HR and tax laws. And HR managers appreciate having additional expert guidance if a tricky situation arises.
Once a PEO is involved with your small business, the employee experience goes up, too. With anytime, anywhere, any device access to the latest HR technology, great benefits packages and dedicated and experienced HR professionals your employees can call if they need to, you’ll soon see your team is more engaged and productive than they were before the PEO came on board.
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Related Reading: "Not All PEOs Are Created Equal; Here's How To Choose Wisely" blog.axcethr.c...
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Just remember: Not all PEOs are created equal. Look for a PEO like Axcet that has completed the voluntary, rigorous Internal Revenue Service certification process, earning the designation … Certified Professional Employer Organization, or CPEO.
Having a CPEO like Axcet handle critical HR tasks frees up your valuable time. Even if you choose to continue working 50-plus hours a week, you’ll be able to devote more of those hours to expanding your labor of love. Visit us online to schedule a phone consultation to learn more about how a PEO relationship can benefit your company:
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