Executive Insight: Why Your Business Should Partner with a PEO

If you’ve ever tried running a small or mid-sized business, you’re quite aware of the many challenges that come along with it. Whether it’s ensuring operational efficiency or managing staff members, businesses often find themselves stretched thin with only a couple of people or (gasp) one person handling the bulk of the important aspects of doing business.

Fortunately, there’s a solution: PEOs. Research has shown that companies that partner with professional employer organizations (PEOs) enjoy substantial advantages that separate them from their non-PEO competition.

What kinds of advantages? Well, the ones that lead to:

• •Growth rates that are more than double that of non-PEO businesses.
• •12% lower employee turnover rate vs. businesses that don’t use PEOs.
• •50% less likelihood of going out of business compared to non-PEO businesses.

It’s these types of results that make PEOs like Innoworks so attractive to business owners. So, what are the specific offerings that PEOs provide and why should your business choose to partner with a PEO? Read on to find out.

PEO 101: Benefit Basics

As previously mentioned, partnering with a PEO offers businesses numerous advantages and allows them to focus on growth while improving their HR efficiency. Below is a small sampling of benefits that businesses can enjoy when they enter a strategic partnership with a PEO:

• HR and Employee Benefits Cost Savings: PEOs help businesses access high-quality employee benefits, such as health insurance and retirement plans at competitive rates by leveraging their large-group purchasing power.
• Compliance Support: PEOs stay updated on evolving labor laws, tax regulations, workplace policies, and workers’ comp claims, ensuring businesses remain compliant while reducing legal risks.
• Payroll and Tax Administration: With expertise in payroll processing, tax filings, and compliance payroll services at local, state and federal levels, PEOs reduce errors and ensure timely employee payments while handling tax requirements efficiently.
• HR Technology and Software: Many PEOs offer the best HR software and HR payroll management software, streamlining employee management and automating administrative tasks.
• Improved Employee Management Services: PEOs support businesses with recruitment, training, performance management, and HR strategy services to enhance workforce productivity and engagement.
• Scalability for Business Growth: As businesses expand, PEOs provide scalable HR solutions that adapt to workforce changes, helping manage HR complexities with ease.

Debunking Co-Employment Myths

A necessary component of entering a relationship with a PEO is co-employment. As the name suggests, co-employment allows businesses to share the responsibility of employing workers with a PEO like Innoworks.

Despite a few prevalent co-employment myths, business clients do not lose ownership or lose control of their business. In actuality, these businesses continue to manage their employees and day-to-day operations, while the PEO focuses on HR-related tasks, like payroll, benefits administration, regulatory compliance, and more. Here are some other common myths and misconceptions:

• Co-employment is only suitable for small businesses
  While co-employment can be particularly beneficial for small and medium-sized businesses that may lack the resources to manage HR functions in-house, large organizations can also benefit. Businesses of all sizes can streamline their HR processes, reduce costs, and remain compliant with employment laws and regulations.
• Co-employment exposes businesses to increased liability
  In reality, businesses benefit from reduced liability because PEOs assume responsibility for many of the legal and regulatory risks associated with employment—like payroll tax compliance and workers’ compensation coverage. Additionally, PEOs often provide expert HR advice to avoid potential employment issues and minimize the risk of costly lawsuits.
• Co-employment is expensive and cost-prohibitive
  Yes, partnering with a PEO does involve a cost, but the long-term savings usually outweigh the initial investment. By outsourcing HR functions, businesses can benefit by using a PEO’s access to “bulk” services, providing lower overall costs in health insurance premiums, workers’ compensation, and unemployment insurance, among others.

Bonus PEO Services & Support

PEOs aren’t just payroll, health insurance, and workers’ comp—they can be much more than that. In fact, many of them offer services that go beyond traditional industry offerings, making them invaluable resources that promote growth in other ways.

• •Risk Management: Businesses are often exposed to risks that are obscure or may have been overlooked. PEOs like Innoworks can provide a free risk assessment to uncover potential risks and make suggestions to mitigate those risks.
• •Safety Services: This helps identify areas of your organization where safety may be an issue. With these services, PEOs can propose solutions that improve environmental, on-site, or process-related operations.
• •Marketing Support: Comprehensive solutions that include branding, messaging, and outreach for increased exposure via traditional and non-traditional methods. Channels may include websites, social media, digital advertisements, brochures, and more.
• •Business Consulting: Expert advice and coaching that delivers improved efficiency, profitability, and success. Consultants can provide specialized knowledge of your industry, an objective/outside perspective, problem-solving innovation, and exclusive access to networks and resources.

The Overall Value of a PEO

The bottom line is simple: when a business decides to partner with a PEO, they gain a strategic HR partner that enhances efficiency, reduces costs, and strengthens workforce management. Combining forces contributes to a better-run organization that ultimately leads to a successful, sustainable business.

Are you looking to partner with a PEO to help take your business to the next level? Feel free to reach out and contact us to explore your options! The Innoworks team looks forward to speaking with you and answering any questions you may have about your PEO partnership.