Growing your company is a goal and a challenge. Ultimately, ensuring steady, sustainable growth is how your business becomes and remains healthy. Bringing in revenue is important, and efficient spending keeps as much money within your company as possible. Keeping low costs gives you more money to reinvest into your company to conduct capital projects or bring on new talent. Too often, revenue brought in immediately goes into vital spending on things such as taxes or upkeep, leaving you with less operating funds than you hoped.
Thankfully, there are ways to ensure that more of your money stays put, and one of those is working with a professional employer organization (PEO).
PEOs provide multiple benefits. They are one of the most cost-effective ways to outsource HR functions, freeing up internal time and lowering costs. Unlike many HR vendors, PEOs become valued partners to your organization. They offer their expertise and guidance, which comes from working with multiple companies like yours, to help you grow your company, control costs, and keep money within your organization.
Working with a PEO also helps by freeing your staff from mundane paperwork that requires HR knowledge but not an intimate understanding of your business goals. It keeps you from spending your time on HR work instead of growing your company.
There are three ways in which investing in a PEO can support your company's health:
Small businesses must deal with changing regulations. Sometimes this happens because of growth, such as the requirement to offer health insurance once you reach 50 employees.
Others change as time goes on, challenging businesses to keep up with them. Regulations differ state by state, which is an issue as businesses expand. It's also an issue as companies adopt remote work policies and have workers spread across state lines. Learning regulations is challenging and continue to exist as a business requires constant adaptation.
Keeping up with regulations is a full-time job, but most smaller businesses cannot afford to employ a designated compliance officer. It leaves that up to owners and managers to keep track of it themselves, which can cause failure to comply with regulations without realizing it. When you partner with a PEO, you get access to a team of experts who can follow the changing rules and adjust everything as needed. That helps you keep money within your company by avoiding fines and costly payroll errors.
Providing good benefits is essential to attracting and retaining quality talent. However, those costs are prohibitively high for many small businesses, forcing them to provide only barebones support for employees at a high cost.
PEOs can help you get better benefits at a lower cost. Because your employees are on the PEOs health plan, you benefit from economies of scale and improved value. Your staff will feel more appreciated, and you will experience reduced costs due to lower turnover. Not offering good benefits can even force good employees to leave after a lifestyle change such as the birth or adoption of a child.
You can use that money elsewhere to help grow your business. In today's climate, you can't afford to skimp on benefits. You also can't afford to waste money on them. With a PEO, your spending on benefits becomes more efficient, allowing you to keep up in recruiting with larger companies and keeping more money in your coffers.
Finally, partnering with a PEO allows you to grow faster and more sustainably, as they will stand with you as you grow. Partnering with a PEO can help you avoid taking on extra debt, which keeps money in your company by saving on interest payments. The PEO can also help you monitor your growth and understand why you are growing and what could cause your development to become unsustainable.
Companies that grow too quickly in the short term often fail in the long term. While restraint in the face of fast growth may seem like it's holding you back, it simply ensures your sustainability. Working with a PEO helps you find a balance between growing quickly and ensuring continuing business health. This sustainable growth then leads to more revenue and, importantly, saving money on interest on loans or covering gaps when your sales start to exceed your ability to keep up with supply.
By partnering with a PEO, you don't have to worry about routine HR matters or compliance, which allows you to put more resources and focus into the things you need to grow your company.
Furthermore, working with a PEO is that it is scalable. As your company grows, your PEO will support you by offering new services to match your needs at every level. Unlike many HR outsourcing solutions, you will not outgrow your PEO or discover that your HR bills are going up faster than your company's growth.
Partnering with a PEO is the best way to save money and keep more of your revenue in your company, where it can work to support your growth.