Running a small business is tough. According to government statistics, during the first five years, 50% of small businesses fail. So, how can you increase your chances of success?
Small businesses that utilize a Professional Employer Organization (PEO) are 50 percent less likely to go out of business. They also grow seven to nine percent faster than those who do not use a PEO, according to the National Association of Professional Employer Organizations (NAPEO). When you partner with a PEO, you can substantially reduce the overhead associated with human resources, payroll administration, and benefits. What this means to your business is a higher rate of growth and a better chance at success.
The best way to grow your business is to allow more time focusing on strategy, cultivating customer leads and nurturing your business relationships. When you use a PEO, instead of contributing in-house resources on HR administrative tasks, you can invest that time in essential tasks inherent to your HR strategy.
The employee turnover rate for PEO clients is 10 to 14 percentage points lower per year than that of comparable companies. Partnering with a PEO allows you to take better care of your employees, giving them more reasons to stay loyal to your company.
What can an effective PEO do for your business?
Here are four key services they will offer:
- HR and Personnel Administration: Instead of your business having to fund an entire in-house HR department, PEOs can take over payroll administration, manage your workers’ compensation, and help keep your business up-to-date and compliant with the latest state and federal laws.
- Payroll & Tax Administration: Imagine not having to devote hours each day to payroll administration and dealing with employee benefits. A good PEO can handle the calculation, preparation and distribution of payroll checks; reporting, withholding and remitting payment of payroll taxes; employee deductions, including garnishments; and preparation of payroll reports.
- Employee Benefits Administration: Adequate employee benefits are one of the keys to retaining the best employees. PEOs can handle the administration, reconciliation and payment of employee health, dental and vision plans, as well as many other employee benefits such as 401(k), IRA, or other retirement plans.
- Risk Management and Workplace Safety: Employee safety is a key priority for a growing company. A good PEO will provide professional, certified safety managers that will come on-site to inspect your safety environment and make recommendations on how to improve it.
When it comes to growing your business, the best thing you can do is hire a PEO. At Delta Administrative Services (DAS), we understand the time and monetary burdens of everyday business administration. By partnering with our team of experts, you can focus your time and resources on the growth of your business, while we do the rest.
To learn more, call DAS today at 504-274-3400 or visit our website, www.deltapeo.com.