Every business wants the opportunity to grow further and to expand its current success. However, that is certainly easier said than done. It can be difficult to manage this progression on your own and there is likely to be a few slip-ups along the way that could delay your efforts. A PEO might be a great solution for the needs of your business.
What is a PEO?
A PEO is a Professional Employer Organization that can help small to midsize companies scale up through a Co-Employment model. The main purpose of a PEO is to help those businesses achieve better results then they are currently seeing as a company.
By working with A PEO, you receive more benefits, technology, employer compliance and HR support. All of this can help contribute to the success of your business.
But how many companies use a PEO as part of their ambitions to scale up the business? This is the real question and one that we are going to answer.
What percentage of companies use a PEO?
As of 2021, today’s PEOs provide services to around 175,000 small to mid-sized businesses. As a result of this, they employ close to 4 million people in order to provide the services needed.
98% of PEO users end up recommending the services to their colleagues. How many companies use a PEO? A new study shows that around 14-16% of small businesses are currently using PEOs. While that percentage is small, the PEO industry is great to get involved with when it comes to running a small or midsize business.
The Benefits of Using a PEO
There are many benefits to using a PEO that may convince you to utilize one for your own business. Here are just a few of those benefits.
— Using a PEO can help decrease employee turnover by around 10-14% – a problem that often wastes a lot of time and resources by having to spend time replacing those who have left
— Access to benefits that are typically reserved for the fortune 500 companies is now available for you to take advantage of
— Helps to transfer compliance to the PEO so that you can align your business to ensure no problems come your way
Using the Co-Employment model can help reduce the operation costs per employee and allow you to lower costs in other areas of your business as well. There are reductions in insurance costs, as well as help with payroll. The list of benefits is endless when it comes to using a PEO for your business.
A PEO can do a lot to provide solutions to your needs. This is why so many businesses turn to PEO 360 for help. When it comes to the percentage of companies using a PEO, it is definitely beneficial to be part of that percentage group.