Why Use a PEO?
Professional Employers Organizations (PEO) are being used by a growing number of businesses to out-source employee administrative tasks. With a PEO as their co-employer, managers can focus on their business rather than on rules, regulations and administrative paperwork.
Between 2.5 and 3 million U.S. workers are co-employed by PEOs nationwide
Rules and regulations have become an increasing burden to U.S. business
In 1995, the U.S. Small Business Administration estimated the annual cost per employee cost to business at $5,000. Estimates put that cost 10% higher today.
Here's what the business press has to say about PEOs:
"Why the boom (in the staff leasing industry)?…It lowers the costs for firms."
-Forbes
"…PEOs free up managers to focus on the business rather than on employment-related rules, regulation, and paperwork. To spend up to one-quarter of one's time on employment-related paperwork is indeed a waste of precious, expensive, scarce resources."
-Harvard Business Review
"Professional Employer Organizations (PEOs) deliver one comprehensive HR package that can be more cost-effective efficient and robust than maintaining an in-house HR and benefits department and negotiating for competitive benefits piecemeal."
-www.bcsolutoinsmag.com, April 2006
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