Learn how partnering with a PEO streamlines HR and cuts costs

Many business owners turn to a hidden gem of Professional Employer Organizations (PEOs) in the race to save money and run a leaner operation. In fact, PEOs provide services to more than 200,000 small and mid-sized businesses, employing 4.5 million people. [1] PEOs don’t just handle payroll and HR—they offer businesses a more innovative way to manage expenses while enhancing employee satisfaction, productivity, and compliance. By partnering with a PEO, companies gain a strategic advantage beyond simplifying HR.

Continue reading to learn how PEOs impact business costs and free owners up to focus on what matters.

1. Payroll done right–without the hassle

Payroll isn’t just about cutting checks—it’s about accuracy, compliance, and saving time. When you have a PEO managing payroll, taxes, and related paperwork, your team doesn’t have to. PEOs use specialized tools to handle payroll efficiently and keep your business compliant with all the regulations, so you can worry less about penalties and focus more on big-picture goals.

2. Savings on benefits

Healthcare and retirement plans are huge expenses for most businesses, and finding affordable, quality options can be a challenge—especially for small and mid-sized companies. PEOs change the game by pooling employees from multiple firms to secure better rates on benefits. This means you can offer your team excellent healthcare and retirement packages without breaking the bank, which also helps you attract and retain top talent.

Related resource:

How partnering with a PEO can help your business offer competitive 401(k) plans

3. Efficient recruitment and onboarding 

Hiring and onboarding can be time-consuming, and the costs can add up quickly. PEOs streamline these processes, helping you bring in the right talent without the headache. With established networks and efficient onboarding practices, they align new hires with your company culture from day one, which makes for happier employees and less turnover—another big cost-saver.

4. Seamless compliance 

Keeping up with employment laws is challenging, and mistakes can be costly. PEOs take on this burden, keeping you up-to-date with all the latest regulations so you can avoid fines and compliance risks. By trusting a PEO to manage these complexities, you protect your business from potential penalties and can sleep easy knowing they’re keeping everything on the right side of the law.

Related resource: 

The role of PEOs in crisis management and business continuity

5. Workers’ comp cost reduction

Workers’ comp insurance can be a major expense, especially if accidents happen frequently. PEOs help you secure lower workers’ comp insurance rates by spreading the risk across their extensive client base. PEOs also provide safety program solutions to prevent workplace accidents, which can reduce the frequency and cost of claims. That means a safer work environment and lower premiums.

Learn more:

Five reasons to partner with a PEO for workers’ compensation

6. Access to helpful HR tools

PEOs offer access to state-of-the-art HR technology, which can be pricey if you go it alone. These tools, from payroll to benefits and compliance, make HR more efficient without large investments. The result? Smoother operations, reduced administrative burden, and more time for your team to focus on what they do best.

7. Improved employee retention

Employee turnover is more costly than many realize, from recruiting and training expenses to lost productivity. PEOs improve employee retention by offering better benefits, HR support, and tools to maintain a positive work environment. With a stable team and less turnover, you keep valuable knowledge in-house and avoid constant rehiring costs.

Learn more:

Employee wellness: The role of PEOs in supporting health and happiness

8. Time savings & cost savings

You know what they say: time is money. With a PEO taking care of HR, business owners can spend less time on administrative tasks and more on what drives growth—product development, sales, and customer relationships. This shift can increase productivity and profitability, helping your business thrive.

How PER can help your business

At PER, we’re here to make HR simpler and more affordable for small and mid-sized businesses. When you partner with us, we handle essential tasks like payroll, benefits, and compliance so you can focus on growing your business. Our team is dedicated to supporting your unique needs and providing cost-effective solutions that save you time and money. With PER by your side, you can trust that your HR essentials are managed with expertise and care, allowing you to invest your energy where it matters most.

Interested in how we can take care of your PEO needs?

With over 25+ years in the industry, our team of dedicated professionals at PER helps you with payroll management, human resources, benefits administration, worker’s compensation, and more.

Backed by our team as your coach and safety net for HR situations, you will become more comfortable and confident in your role.

Ready to get started?

Contact us today!

1: NAPEO | Industry Statistics