4 Reasons Employers Should Consider PEOs

Any business can benefit from working with a professional employer organization (PEO) to tackle their HR and administrative business needs. If you are a business owner, here are a few of the reasons why you should consider working with a PEO.

Payroll Preparation

On the long list of tasks that accompany business administration is the process of paying your employees. The ins and outs of payroll preparation can get pretty tangled if an employee does not receive proper training, and these errors do not come without consequences. Payroll errors can lead to various issues such as tax audits, equity loss, and even employee levied lawsuits. By working with a PEO, businesses can skip all of these worries and verify that experts are prepping their payroll with years of specialized experience in doing so. With that in mind, PEO is something an employer looking to safeguard their business and simplify their payroll process should consider.

Improved Benefits Packages

Working with a PEO also helps businesses offer their employees the best benefits possible. While many uninformed companies try to cut costs by cutting corners for employee benefits, wise employers know that offering impressive benefits packages is key to developing a skilled and productive workforce. PEOs empower employers to offer better benefit packages for less, which is possible because PEOs can get lower premiums and better benefits offerings from insurance carriers more comparable to those for which larger companies are eligible.

Savvy employers of small and mid-size businesses who work with PEOs can more easily and affordably offer their employees comprehensive benefits such as:

  • Retirement savings such as 401(k) plans and more
  • Health insurance with low premiums
  • Dental insurance
  • Cancer insurance

Risk Management

PEOs help protect employers by offering risk management services. Here are five-point plan for risk management:

  1. Identifying potential risks
  2. Measuring frequency and severity of risks
  3. Exploring alternative solutions to eliminate the risk
  4. Implementing a chosen formal risk management plan
  5. Monitoring results and continuing to adapt the strategy

Workers’ Compensation

The medical costs, time resolving insurance issues, and revolving paperwork encompassed in workers’ comp claims may be too much for an inexperienced employee to handle. Working with a PEO simplifies the entire process.

Consider HR for Your PEO Needs

Businesses that work with PEOs save hundreds of dollars on HR and administrative costs and report lower employee turnover rates. Additionally, working with a PEO helps businesses expand at a rate

7-9% faster than businesses that do not work with PEOs while cutting their chances of shutting down in half.


Guest post courtesy of Canal HR president, Mitch Chailland

Mercy - CBNation

This is a post from a CBNation writer. CBNation is a Business to Business (B2B) Brand focusing on increasing the visibility of and providing resources for CEOs, entrepreneurs and business owners. CBNation consists of blogs(, podcasts ( and videos ( CBNation is proudly powered by Blue 16 Media.

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