INC. BRANDED CONTENT / HR
These are compelling
statistics, and they
underline just how
important a role HR plays in
SMB success, especially for
Trisha Degg, VP of talent
programs and operations
for the Illinois Technology
Association, works with
such companies every day.
The two biggest HR-related
challenges she sees them
facing are competition from
larger organizations for the
best available talent and a
lack of strong, internal HR
leadership. “Having a PEO
on retainer can give small
and midsize HR teams the
external support they need,”
hen Pat Cleary, president and CEO of the
As much as he enjoys the experience, it comes as no surprise to Cleary.
National Association of Professional Employer Organizations (NAPEO),
sits behind a one-way mirror during focus groups, his most rewarding
experience is watching the change that comes over participants who are
originally skeptical of the PEO concept. It happens when they hear other
participants, already using a PEO, talk about how it relieves them of non-
revenue-generating responsibilities and frees them up to focus on more
strategic activities. “You can see their expressions slowly start to change,
and then there is this ‘Aha!’ moment,” he says.
PEOs provide comprehensive HR solutions for small and midsize
administration, regulatory compliance, and more. NAPEO has compiled
clients as a result. Three that particularly stand out are:
Over the past 15 years, employment at SMBs using PEOs has grown between
7 and 9 percent faster than at SMBs overall.
SMBs that have used a PEO for at least four quarters have experienced
employee turnover rates that are 10 to 14 percent
lower than the average rate for U.S. businesses.
Privately held businesses that use PEOs are approximately 50 percent less likely
to fail (permanently cease operations) from one year to the next when compared
to similar companies in the overall U.S. population of private businesses.
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owners the tools
of PEO, Paychex, Inc.
and president, Oasis, a
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