One of the best towns in the northeastern United States for small businesses
is Philadelphia, Pennsylvania
. While sometimes overlooked because of another big city that’s only 100 miles away, Philadelphia is a booming area that is only growing.
Part of this growth is due to the volume of small businesses that operate within Philadelphia (more on that shortly). And while growing a small business can often be a challenging process, working with a professional employer organization (PEO)
can be the perfect partnership to achieve this goal.
In case you are unfamiliar with PEOs, this brief overview is a helpful resource
. If you are interested in a more detailed look at PEOs and the industry as a whole, we recently created a PEO guide
that contains more information that you’ll find useful.
Professional employer organizations, especially those who are local to the area, are uniquely positioned to help small businesses in Philadelphia in a few important ways:
- Business Growth: A PEO helps to simplify HR, meaning small business owners can focus all of their efforts on business activities that lead to growth.
- Provide Access to Improved Employee Benefits: Small businesses often struggle to provide competitive benefits to their employees. This makes recruiting new talent more difficult and can lead to greater turnover. Partnering with a PEO gives small employers access to large-group level employee benefits that will help with recruiting and retention.
- HR Compliance: Employment laws and regulations are more complex than ever before. With the uncertainty surrounding the Affordable Care Act, small businesses face significant challenges around HR compliance. A PEO offers expertise in this area that can help small businesses navigate the ever-changing HR regulatory environment.
These are just a few ways PEOs can help Philadelphia small businesses. Now, let’s take a closer look at why Philadelphia is such a popular area for small businesses (and PEOs).
What makes Philadelphia a Hot Spot for PEO Partnerships?
Just like New York City, Philadelphia is a great location for professional employer organizations. The main reason is because of just how popular small businesses are in Philadelphia
. According to Pew Charitable Trust’s annual “The State of the City” report, more than 84% of Philadelphia businesses
have fewer than 20 employees.
When you consider that most PEOs look to partner with clients who have anywhere from 5-125 employees, it is clear why Philadelphia is the perfect location for PEOs.
What else makes this city a popular area for PEO partnerships? Another interesting fact uncovered in the Pew Charitable Trust’s report is that Philadelphia is 13th
on the list of top areas for venture capital invested, and there is still a lot of room to grow! With more small businesses coming to the area who want to grow, PEO partnerships can become a popular option for business owners and their benefits brokers.
One other important statistic about Philadelphia is that the job market has expanded in recent years. In 2016, job growth in the area grew by 2.2%, compared to 1.7% nationally. We have already mentioned that PEOs specialize in working with small businesses who are looking to grow. Partnering with a professional employer organization can give small businesses access to improved benefits offerings that can help them compete with larger companies in the area.
As more small businesses enter the market and seek to grow over time, a strategic partnership with a local PEO can help in an extremely competitive city!
Small Businesses in Philadelphia Who Want to Grow Can Consider PEO Solutions
Owning and operating a small business is difficult in any area, including Philadelphia. When you also have to deal with the various, complex tasks that go with HR, growth can be hard to achieve. However, the right strategic partnership can help small businesses simplify their HR needs. This is where a PEO can be extremely valuable and helpful.
Both small business owners and benefits brokers with clients in the Philadelphia area shouldn’t hesitate to look into PEOs as a solution in 2018.
Want to learn more about PEOs? Check out our eBook, How Well Do You Know PEO? This eBook provides an overview of the PEO industry as well as helpful information for brokers and employers!