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7 Ways to Know if Your Company Needs a PEO

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By Jennifer Eddlemon, aPHR
Oct 4, 2018 3:00:40 PM

7 Ways to Know if Your Company Needs a PEO

With so much on their plate, it is not uncommon for business leaders to become so bogged down with the day-today tasks of running their company that they no longer have time to focus on growing their company. When this happens, it can be a sign that the time has come for them to outsource to a professional employer organization, or a “PEO.”

While you read the following seven signs if you find yourself nodding along in agreement, then it may be a good time to look at your PEO options.

  1. You are drowning in paperwork.

    Let’s face it, most entrepreneurs don’t get into business because of to their love of administrative paperwork. But the reality is that things like record-keeping, payroll, and benefits management are a huge time suck. By enlisting a PEO you can get back the time spent on repetitive and time-consuming administrative tasks and use it to focus on growing your business.

  2. Payroll stresses you out big time.

    Not only is it super time-consuming, but you find yourself worrying about whether your local, state and federal calculations, remittances and filings are correct. A PEO can help with timely processing, direct deposit, proper file maintenance, reporting and more.

  3. You can’t remember the last time you spent a whole day doing the things you had planned on doing.

    It’s hard to focus on your company’s core competencies when you are constantly getting distracted by, and reacting to, the HR related issues that come up. A good PEO can help with everything from onboarding and employee training to HR consultations, HR audits, and more.

  4. You aren’t really sure if you’re in compliance.

    There are more regulations than you can count, and you aren’t entirely sure your company is doing everything it should be doing to protect itself from litigation. By using a PEO you can gain access to a team of professional advisors and experts who stay current on the most up-to-date employment laws for you and can quickly provide you with the correct information you need.

  5. You’re afraid your benefits can’t compete with those offered by large companies.

    You want to attract and retain the best and brightest employees, but you can’t afford to offer what large companies can. A PEO can help you gain a competitive advantage by offering the same high caliber benefit packages, online tools, and company culture as that of a Fortune 100 company.

  6. You don’t have the resources to build your own HR department.

    One day you hope to do all your HR in-house, but you just don’t have the financial means to make that happen yet. In the meantime, a PEO can support the HR employee(s) you do have with better more streamlined admin tools and support.

  7. You’re seeing an uptick in employee turnover.

    When employees aren’t supported and managed well they leave. Enlisting a PEO not only provides them with access to high quality benefits but it also increases employee engagement and fosters better communication. In fact, according to NAPEO small businesses that use a PEO have 10 to 14% lower employee turnover rates.



If you identify with the problems listed above then it may be time to outsource to a PEO like Scale. For more information on how Scale can help you run and grow your business contact a member of our team.

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Jennifer Eddlemon, aPHR
Jennifer Eddlemon, aPHR
Jennifer is a licensed life and health agent with over a decade of experience in the insurance industry, and an aPHR certification. Outside of the office she loves horseback riding, volunteering, and spending time with her family.

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