When sales people or even vendors make the promise that their solution helps your business become more profitable, do you listen? Or do you just shrug it off as sales talk and carry on the conversation? If you are like most people, you tend to take it with a grain of salt, but if you are talking to a PEO, you should pay attention.
According to a study done by a pair of economists over at McBassi and Associates, organizations that partner with PEOs are more likely to grow faster, have lower employee turnover, and a higher rate of business survival than organizations not partnered with a PEO. Those are economists we are talking
about, so hopefully they’ve done their research.
How does that work?
Well, there are a lot of answers to that, but one of the main drivers is time and peace of mind. You see, when you partner with a PEO, you are getting a wealth of HR services and expertise. Essentially, the PEO has your back with many of your employer/employee related needs.
When these services are put in place, the typical organization has more time and resources to dedicate to growing their business – which could include raising funds, hiring employees, go-to-market strategies, etc.
When asked about the study, Pat Cleary who is the president of NAPEO had this to say:
"This study proves through empirical data what we in the industry have known for years: PEOs provide critical competitive advantages to their clients that result in higher profitability, stronger revenue growth, and greater employee satisfaction." "Small business owners need to know that if they're not using a PEO, they are not doing everything they can to help their business grow and thrive. That's why thousands of savvy small businesses already rely on a PEO for their payroll, benefits, and HR needs."
A PEO is a great fit for small to mid-size organizations. It can be a single source provider of people, process, technology and expertise. As the world continues to get complicated, who has your organizations back?