As a small business owner, you know how important every dollar your company spends is. You want to make your money count and help you down the path to achieving your entrepreneurial goals. You also know that your time is important, and frequently way too much of it is spent on logistical and administrative details.
One solution to this problem that you have probably heard about is partnering with a Professional Employer Organization (PEO). You might be wondering, though:
Can a PEO really save you money?
We’re here to let you know that the answer to that question is a resounding, “Yes!”
Here are a few of the biggest ways a PEO can save you money.
Partnering with a PEO will not only help you save money on the cost of health benefits, it will also give you and your employees access to far superior medical plans than would have been available to you normally.
This is possible through the PEO co-employment model, which gives access to more competitive large benefits packages that would not otherwise be available to a small business your size.
Saving money on the cost of health benefits has never been more important than it is today, with insurance costs on the rise, as well as ACA mandates requiring employers with more than 50 full-time employees to offer health insurance.
Establishing a 401(k) for your small business can be an absolute nightmare on your own. However, by partnering with a PEO you will be working with 401(k) experts that already know all the ins and outs of finding you the best deal.
Not only will these experts have the right connections and knowledge to get you the best deal possible, but you will also have access to better deals to begin with. Thanks to co-employment, a PEO will have a much larger amount invested in a 401(k) than a single small company would, which leads to better initial rates from the 401(k) provider as well as possible discounts based on the amount invested by the group as a whole.
Thanks to a PEO’s nationwide reach and co-employment, you will have access to work comp rates typically reserved for much larger companies than yours that you would normally not have any access to. Beyond the actual rates, a PEO can also save you money on workers comp in other powerful ways.
A PEO can provide safety services at a level most small businesses could not afford on their own. Here at Employers Resource, our safety team does everything from an initial risk analysis and loss review to comprehensive training on OSHA-required topics. Safety services help our clients create a safety culture in their business. More attention paid to safety results in fewer workplace accidents and lower claims costs. Over time, a culture of workplace safety results in lowered experience modifiers and lower workers’ comp premiums.
We provide aggressive claim management. In conjunction with the insurance carrier, Employers Resource monitors the progression of each claim from opening to close. We closely monitor activity to ensure that claims are adjudicated fairly and workers get the best possible care.
A PEO assists their small business clients with modified duty programs to put injured workers back on the job at some capacity. This greatly reduces the indemnity costs associated with the claim and often gets the injured worker back on the job at full-duty 30% faster.
With the countless rules and regulations that business owners and their companies must follow to remain in compliance today, it’s nearly impossible keep track of everything you are supposed to. Unfortunately, when it comes to compliance issues, even a small mistake can be quite costly. A PEO will have the expertise and experience to navigate the tricky world of governmental rules and regulations and keep you in complete compliance.
By partnering with a PEO, no longer will you have to worry about missing a small mistake getting you in hot water with the government, or the massive fines potentially accompanying that. Instead, you can have peace of mind that your money can go where it will best help your company succeed.
(Your) Time is Money
More than any other factor, the biggest way a PEO can save you money is by saving you time. By no longer being forced to spend most of your time worrying about the logistics and complications of being an employer, you will have the time needed to actually spend on running your business.
You didn’t start your company because you wanted to be a professional employer. You did it because you have the spirit of entrepreneurship and you wanted to do things your way. By partnering with a PEO, not only will you be able to get back to that, but you will save your time, energy, attention, and money, and focus it on chasing your dreams.