Is a Professional Employer Organization (PEO) right for your company? Our clients have found that our PEO platform reduces health insurance premiums by 10-15% or more. Consistently, PEOs have held growth in medical insurance costs to single digit rate.
For small and intermediate size companies, a Professional Employer Organization brings the professionalism and efficiency of large-scale personnel management to your organization.
With a PEO, you will get lower rates, better advice, and stay up-to-date with all compliance requirements. As a result, you can focus your organization on your business goals. Not being knee-deep in personnel processes enables your organization to grow faster.
You can expect a PEO program for your organization to deliver:
- Outsourced Human Resources
- Employer Practices Liability Insurance
- Employee Benefits and Benefits Administration
- Workers’ Comp coverage
More cost savings, more compliance
Working through a Professional Employer Organization generates more than just cost savings on health insurance. A PEO can eliminate legal costs and exposure for labor and employment issues.
The PEO can free your managers for worrying about compliance. In a complex, compliance-driven environment, the PEO brings in skilled human resources professionals to help ensure compliance with the web of requirements. By putting the onus of compliance on the PEO, you free your staff to focus on growing your business. The HR professionals in the PEO stay up-to-date on the regulatory environment while your managers pay attention to your business needs.
A recent study (attachment above) found that:
“… the evidence on employment growth suggests that PEOs are making it possible for their clients to grow more quickly than their peers – both other small businesses as well as all companies throughout the economy….Employees in PEO arrangements have access to a broader array of HR-related benefits and services. Yet PEO clients spend less on HR administration than similarly-sized peers, freeing up money that can be reinvested in the business. Some of the benefits PEO clients are disproportionately able to offer … play a major role in helping businesses attract and retain their employees. This too can have a tangible impact on business success: it is easier to keep key high-value employees, while turnover-related costs are reduced. Finally, freed from many HR administrative burdens, executives and managers of PEO clients can focus more of their time on strategy and growth.”
How a PEO generates cost savings and mitigates risk
PEOs are generally able to offer lower health insurance costs because they purchase insurance for a very large pool, In addition, by accessing the industry expertise at Rittenhouse Benefits we are able to deliver, consistently, relatively low rate increases compared to the open market.
As a small or mid-size employer you can be exposed to considerable risk from the actions of even a single employee. The professional employer organization serves as a vehicle to transfer a substantial amount of employer risk to third parties.
A Professional Employer Organization manages compliance
A PEO can manage your HR and benefits legal compliance. In an era of rapidly changing and increasing government regulation, shifting compliance to the professional employer organization frees your staff to concentrate on the nuts and bolts of growing your business, improving profitability, and keeping your customers!