Episode 60: Is a PEO the Right Choice for Your Business
Episode Description
In this episode, Kerri Roberts discusses the critical decision small to mid-sized businesses face regarding their HR strategy: whether to outsource HR functions through a Professional Employer Organization (PEO) or to manage them in-house. She outlines the pros and cons of each approach, focusing on key considerations such as cost, compliance, and control. Kerri also provides insights into the types of businesses that typically benefit from PEOs and offers guidance on how to make the best choice for your organization based on its specific goals and needs.
Key Takeaways:
Nearly 15% of small businesses in the US use a PEO.
PEOs can save businesses an average of 27% on HR-related costs.
PEOs handle compliance risks, relieving small businesses of legal burdens.
In-house HR offers more control and customization over policies.
Businesses using PEOs experience 10-14% lower employee turnover.
PEO clients grow 7-9% faster than those not using a PEO.
The PEO industry has grown by over 20% in the past decade.
Businesses with 10-200 employees are the sweet spot for PEOs.
Cost control and employer branding are top priorities for in-house HR.
A cost-benefit analysis can help determine the best HR strategy.
Resources:
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Whether you go PEO or in-house, your HR strategy needs regular reassessment as you grow — the Monday newsletter helps you make smarter people decisions either way: saltandlight.myflodesk.com/saltandlightadvisors
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