The Excitement... and The Challenge
Running a business can be such a rewarding experience- but it can be extremely demanding, as well. Let's face it, most of us jump into business ownership because we believe we can do things better, be more efficient and provide better quality than what we experienced as employees.
What we don't consider is the "cost of running a business". Sure, we understand hiring and training employees, negotiating wages and dealing with some unwanted paperwork is part of the process, but those things can quickly become a full time job on their own.
New business owners are thrown into a world filled with things like:
- Matching FICA taxes
- Workers' compensation insurance
- General liability insurance
- 941 reports
- Tax deposits
And then you begin to question that "great idea" you had to run things on your own.
I've seen the stories hundreds of times- people who have terrific restaurants, build quality custom homes or service their irrigation customers like no one else- they are the best at what they do! Getting customers isn't the problem. Controlling employee-related costs and keeping up with all the paperwork is what keeps them from maximizing profits.
A PEO is a Helpful Solution
PEO services jumped into the business world roughly thirty years ago with a simple concept- give employers back their precious time. When employers outsource their payroll, reports, audits and many other time-consuming hassles to a PEO, they can turn their focus toward running their business.
By managing hundreds of payrolls for business owners, the PEO company can do processing of payroll cheaper than an employer could do on their own. Plus, the PEO buys workers' compensation for thousands of employees which enables employers to save money and reduce their overall costs.
The Professional Employer Organization offers other services, including Group benefit options that even the smallest of employers would have access to, and a team of HR (human resources) professionals on staff to answer questions and keep employers in compliance with every new business regulation.
This relatively young but simple concept has flourished over time. PEO companies are now represented in every state and they service a variety of industries. In fact, PEO growth has been so dramatic in such a short period of time the U.S. Department of Labor released an significant statistic. The Department states that "by the year 2020, more than half of American employees will receive their paychecks through an employee leasing company."
When you think about it, PEO services follow common business strategies that well-known executives have been preaching for years- "Do what you do best, outsource and delegate the rest."
PEOs Provide Great Results
So, can PEO organizations really cut "the costs of doing business?" Definitely! The PEO will allow you to concentrate on building your business while controlling your administrative costs. How much you'll save depends on your current situation.
When you're ready to choose a PEO company, let ELQ help you sift through over a thousand services. Because each PEO company services different states, industries and markets, there may only be a handful that truly fit the needs of your small business.
The power of multiple PEO companies competing for your business saves you time and money! Our price and service guarantee eliminates the hassles of interviewing endless salespeople.