Could a PEO Be Right For Your Clients?
Many business owners dread the human resources side of business, but it’s a necessary element in keeping companies successful and thriving. Professional Employer Organizations (PEOs) are designed to provide human resources services to businesses and help lessen the burden of complicated processes that most employers face. NAPEO, the National Association for PEOs, indicates in a study conducted by two independent economists that companies choosing to use a PEO grow up to 9% faster than those that use other services. In addition, those companies experience up to 14% lower turnover and are 50% less likely to go out of business. For agents, this means more stable and profitable clients now and for years to come.
As a subsidiary of Bankers, DecisionHR is a PEO that serves small and mid-sized businesses nationwide and can help clients grow faster and safer. DecisionHR empowers their clients with industry-leading benefits and human resources so they can focus on what’s truly important: running their businesses. As a PEO, DecisionHR delivers customizable, scalable, practical workforce solutions which enable business owners to reduce costs, increase profits, and attract, develop, and retain engaged, long-term employees.
Aside from helping business owners grow faster and safer, here are a few examples of how companies can help leverage PEO relationships:
A PEO takes care of everything related to employment taxes, including withholding and reporting income tax, FICA, and unemployment tax. That means fewer headaches for the business owner. DecisionHR offers these services in all 50 states. With thousands of tax law changes each year, this is the largest area for concern among business owners.
Sometimes, partnering with a PEO is the only way a small business can afford to offer employees an affordable benefits package. PEOs tend to get better rates than small businesses because their insured groups are larger. Currently, DecisionHR only offers health insurance in Florida but is looking to expand its offerings.
Workers’ compensation insurance is another issue for small businesses that can quickly become costly and difficult to manage. PEOs can often obtain blanket coverage for all co-employed workers at a better rate than individual businesses. On average, DecisionHR customers are offered rates 20% lower than what they are currently paying.
The PEO model is growing rapidly with small businesses across the country. A co-employment arrangement created when a small business partners with a PEO can be the most important factor that enables the small business to thrive, allowing the owner to focus on their core business.