As a small business, you know how important it is to grow your company. Companies that partner with best-in-class HR outsourcing solutions such as a professional employer organization (PEO) grow 7 to 9% faster than average and are 50% less likely to fail.
This signals a competitive advantage that can be obtained easily.
So, how do PEOs help companies grow?
Cash flow is one of the biggest challenges for newer businesses. You might have plenty of income, but you also have plenty of expenses. Partnering with a PEO helps with your cash flow in three distinct ways:
When your internal HR team or non-HR personnel are trapped doing hours on hours of routine paperwork, they cannot deal with the issues that help your company grow. You need your people to focus as much as possible on revenue-generating tasks such as creating products and providing excellent customer service.
You can outsource any or all of the following:
By outsourcing these mundane and time-consuming tasks, your employees can focus on your core business and doing their jobs.
Many small- and medium-sized businesses have issues attracting and retaining the talent they need to grow. It is hard for a small company to offer a fair salary, competitive benefits, and great workplace culture.
HR outsourcing can help by providing access to competitive benefits at an affordable price. It also frees up you and your HR people to work towards creating that great work environment and bringing in the right employees. This helps develop a company culture that makes people want to come to your company. This helps you attract high-quality candidates who otherwise would not even look at your business.
Very small businesses are exempt from a lot of regulations. This means that as you grow, compliance requirements change. For example, when you hit your 50th employee, you become covered by the Family and Medical Leave Act. This obliges you to provide unpaid leave for certain life events. Knowing the requirements and what qualifies suddenly becomes important.
In many cases, companies of this size have a single HR specialist and maybe an assistant. An outsourcing partner on the other hand, has full-time compliance experts who follow the latest changes in regulations. They can help you keep up with changes as you grow or changes as a result of updates to legislation.
If you aren't totally compliant, this can result in expensive fines and can cause a growth ceiling. Some businesses may even hold off on hiring and slow their own growth out of fear of dealing with new regulations.
Outsourcing HR can help you grow your business. It can reduce your cash flow problems, help your employees focus on core competencies, allow you to offer better benefits, and help you keep up with compliance. The go-to solution for small and medium-sized businesses is to partner with a professional employer organization (PEO), which can provide you with a comprehensive, scalable solution that grows with your company.