INC. BRANDED CONTENT / HR
because they are frustrated about
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ties involved, and, of course, the
cost,” Sarvadi says.
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but compliance issues, administrative
responsibilities that bog the com-
pany down, and concerns about risk
management are other common trig-
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employees on that list. Being able to
recruit and retain key people is always
top of mind for growing businesses.”
The HR space continues to become
more involved and challenging from
both an administrative and a strategic
standpoint, especially for SMBs that
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larger enterprises. One of the great
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prehensive that it can provide a single
solution to multiple issues.
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infrastructure for upgrading a busi-
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challenges at once—employee record-
keeping, compliance, running payroll,”
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they are recurring and have to be done
properly every time, and that can really
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solution for that.”
Jim Bell, Sr., president of Cranbury,
New Jersey-based Abel HR, makes
the case that HR analysis has been
overlooked and under-prioritized at
SMBs for many years. “HR managers
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enough time in their busy schedules to
get involved in strategic HR analysis,” he
says. “They are too bogged down with
the minutiae of employee administration. With the high level of employee
turnover in so many industries, just
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keep up with the related paperwork
eats up all their time.”
A PEO can take the responsibility of
recruiting new talent and administering
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HR managers, freeing up time they can
devote to conducting a deeper analysis
of strategic employee issues. “A PEO
can help with any HR issue a company
may have,” Bell says. “From a compli-
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cated to researching the ever-changing
regulatory environment. Our clients
always receive personalized service
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for consultation on most any subject.”
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to go into a co-employment relationship with, Sukalski says. “You want a
PEO that you can rely on. The most
reputable and respected PEOs will be
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the Employer Services Assurance Cor-
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Report that revenue has increased since they started
using a PEO.
` Annual median revenue growth for PEO users was
double that of comparable businesses not using a
PEO, while expected annual median revenue growth
is 40 percent higher for PEO users.
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becoming a PEO client; SMBs using a PEO were 16
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than their non-PEO counterparts.
of business owners who use a PEO would recommend
one to a colleague.
` No respondents reported negative impressions of
the PEO industry.
` PEO clients have up to 14 percent lower employee
turnover than non-PEO businesses.
` The failure rate among SMBs that use a PEO is half
that of similar companies that do not use a PEO.
70%
66%
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98%
“I like to describe
a PEO as instant
infrastructure
for upgrading a
business’s ability to
respond to multiple
challenges at once"
Paul Sarvadi, Chairman and CEO,
Insperity, Inc.
