Total Team Solutions Blog

PEOs: Good for Small Businesses and Their Employees

By: Rob Lynn

A recent survey from McBassi & Company found that small businesses that utilized a Professional Employer Organization (PEO) to manage their payroll, benefits, regulatory compliance and other human resource needs experienced faster growth, greater employee retention and had a significantly higher rate of business survival than those who did not.  The reason is quite simple, by not having to manage these administrative tasks, the small business owner can focus on servicing his current clients and prospecting for new ones.  Not to mention, by outsourcing these functions to the experts, they have the comfort of knowing that they are operating more efficiently than if they tried to do these tasks themselves.

Employees of PEO clients also report significantly higher scores on key measures related to employee satisfaction and confidence in company management:

• Levels of employee engagement (+5);

 • Intention to stay with their current employer until retirement (+8);

• Belief that employer is taking the right steps to be competitive (+8);

• Trust that employer is supporting employees in delivering excellent customer service (+7);

• Confidence in employer’s approach to growing the company (+5).

• Demonstrates a commitment to employees (average response was +8 percentage points higher)

• Has good hiring practices (+8)

• Has good HR policies and practices (+5)

 • Does a good job of designing employees’ jobs (+4)

• Provides employees with good training and development opportunities (+4).

So it should also not be a surprise that an increasing percentage of small businesses are rushing to engage PEO’s. 

For additional information, please contact Rob Lynn via email rlynn@ttspro.com or call 800-836-9678 ext. 6

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