The number of small and medium-sized employers using professional employer organizations (PEO) continues to increase each year.
Often, it is thought that the growth of the PEO industry is due mainly to the benefits business owners see from this partnership
. However, owners aren’t the only ones who gain from working with a PEO.
Small business employees, too, stand to benefit from the services and solutions offered by PEOs today. Let’s take a look at a few examples of the positive outcomes that small business workers see when their employer works with a PEO.
1) Enhanced, Personalized Benefits
One of the most well-known advantages to using a PEO is gaining improved, modern benefits
and perks. And while better benefits help employers retain and recruit talent, these enhanced perks often provide even greater for employees.
When working with a PEO, employees are given access to a wide-variety of personalized benefits, including:
- Health insurance
- Retirement benefits
- Voluntary benefits (pet insurance, identity theft protection, financial and legal programs, telehealth programs, etc.)
- Complimentary benefits (discount programs, employee assistance programs, etc.)
And while business owners may actually save money on healthcare and benefit costs by working with a PEO, this doesn’t mean that the quality also lowers. In fact, in most cases benefits get enhanced to Fortune-500 levels through a PEO partnership.
Also, PEOs routinely add to their benefit offerings, meaning employees will be able to have new benefit choices from time to time.
2) Modern HR Technology
Workers today are surrounded by technology both at home and at work. They expect their employer to provide the type of professional technology needed to make their work as easy and efficient as possible.
This desire for modern technology has also become an expectation for HR tasks that employees are asked to perform, such as requesting PTO, going through benefit enrollment, and submitted their hours.
The majority of PEOs offer their clients the kind of HR tech that employees want and need. Some even have mobile apps that make tasks as simple as possible for employees!
By meeting employee expectations, employers help boost the happiness and ultimately retention of their workforce.
3) Learning and Development Programs
One of the more prominent HR trends in recent years has been the demand from employees for learning and development (L&D). While most larger employers have organized L&D programs, smaller businesses often aren’t as fortunate.
Today’s employees understand the value of boosting their skills and adding new ones, which help in getting promotions, salary increases, and potentially new roles.
And most PEOs, through their HR technology, can offer small business employees learning and development programs
and software that much larger organizations use.
By using these resources, employees can better set themselves up for their professional futures.
4) Improved Employee Happiness
With many of the services and solutions offered by PEOs comes improved happiness for employees. Enhanced benefits, robust learning and development programs, and easy-to-use, modern technology all help to boost the employee experience
For employees, increased happiness makes their connection to their work and employer greater. And for employers, happy employees mean improved productivity and lesser chance of turnover – studies from the National Association of Professional Employer Organizations (NAPEO)
have shown that PEOs help their clients reduce turnover by 10% to 14%.
A happier workplace and workforce are good outcomes for everyone and working with a PEO can help achieve these goals!
5) Experienced HR Professionals
A common challenge for many small employers is that they lack dedicated HR professionals. This can lead to issues for employees as well should HR questions or concerns arise.
But by partnering with a PEO, clients and their employees gain access to a wide-variety of HR professionals who assist with many HR-related tasks. These professionals can include those who specialize in:
- HR Management
- Risk Management
- HR Compliance
- Employee Benefits
- Learning and Development
These professionals can make the day-to-day lives of employees much easier and less stressful, knowing that they have help in place if they need it.
6) Improved HR Practices
In addition to enhanced benefits
and modern technology, another incredibly valuable outcome that PEO clients and their employees gain are improved HR practices and strategies.
For example, working with a PEO helps small businesses create and update their employee handbooks, a critical employer document. Handbooks are invaluable tools for employees at all stages in the company – from new hires to tenured team members.
PEOs also help their clients put HR procedures in place that help a company stay organized and ensure that team members know what to do in various scenarios.
And with improved HR practices can come increased efficiency and productivity, which lead to business growth and success. Both of these results help to raise employee morale, satisfaction, and happiness which makes it much more likely that they stay with their current employer.
PEO Services Help More than Just Business Owners
The benefits of PEO services for small businesses
and their owners are well documented in studies from NAPEO and other organizations. But owners aren’t the only ones who stand to gain from a PEO partnership – small business employees also see numerous positive results through a PEO.
By exploring professional employer organizations, business owners may find a solution that helps both their company and employees!
As PEOs have grown in demand by business owners, so too have the number of myths that exist about them. But are they true? Our latest eBook explores 12 of the most common PEO myths and explains why they have been busted!