Celebrating National PEO Week 2023!
Welcome to National PEO Week! A proclamation officially recognizing May 21-27 as National PEO Week was placed in the congressional record by Rep. Erin Houchin (R-IN). It’s a welcome and well-deserved recognition for a growing industry that enables many American small businesses to succeed and subsequently, help our economy grow.
Professional Employer Organizations (PEO) are companies that provide comprehensive human resource solutions to small and medium-sized businesses. They offer a range of services, including:
- HR consulting
- HR strategic planning
- Payroll and tax administration
- Employee benefits
- Customized training
- Regulatory compliance assistance
These services are especially important when you consider why a small business owner starts a business. Is it to become an HR Director, Payroll Specialist or Benefits Consultant? Almost never! An entrepreneur has a burning desire to satisfy a need in the marketplace or to capitalize on an opportunity. By outsourcing the above functions to a PEO, small businesses can focus on their core operations and leave the HR tasks to the experts.
Here are just a few key reasons why a PEO is essential for many companies:
Expertise: PEOs are experts in HR and employment-related laws and regulations. When a small business doesn’t have the resources to hire a full-time HR Professional, this expertise is invaluable. The business owner can be assured that the PEO can help the business stay in compliance with ever-changing employment law, and help to handle all employee situations in a compliant manner.
Time savings: PEOs off-load many day to day, HR transactional tasks that take employees away from their core business operations and responsibilities. PEOs also provide administration services for employee benefit plans, resulting in additional time savings for the client.
Employee Retention: PEOs offer access to employee benefits such as health insurance, retirement plans, and other benefit plans that may be more cost effective than what a small business could get on their own. In addition, PEOs deliver the HR expertise and strategy that can help businesses attract and retain top talent.
Stability: When a business partners with a PEO, the business is 50 percent less likely to close its doors. When a PEO applies it’s expertise and knowledge of ‘HR Best Practices’, turnover is often reduced, organizational culture improves and a business is better positioned for an uncertain marketplace.
At ESC, we’re happy to celebrate National PEO week and are always willing to answer questions about what makes the PEO model such an asset to small businesses. If you’d like to learn more about PEOs, you can check out some additional benefits or feel free to contact us.