A PEO is short for Professional Employer Organization. Companies partner with PEOs like Insured Solutions and are co-employers of their own staff. PEOs share their tax IDs with the businesses. Since the PEO has a bigger pool of employees (counting all the other employer groups under its umbrella), a business gains flexibility and several advantages.
An SBA study estimated that the average small business owner spends between 7% and 25% of his or her time handling employee-related paperwork. When you add in the time spent on all the other HR tasks, this figure rises to 35% to 45%. By outsourcing some or all of their employee-related functions, small business owners can focus on the business. And in the process, they can improve productivity and save money.
More partnership advantages:
But some companies mistakenly think that PEOs are only for large businesses and only for payroll services. Think again.
Any size business receives an equal or better benefit from PEOs - and payroll services are just and beginning!
Business owners may also fear loss of control.The opposite is true. By sharing responsibilities, owners have time to concentrate on what’s important – growth! Managers can still hire and fire employees – and professional guidance is available through stressful situations like firings.back