Starting a Company with a PEO
The PEO model is a great resource for a start-up company and should be put in place on day one. The mindset of a startup is to focus on the core strengths of the business and allow experts manage the difficult, complex tasks associated with getting the business started. One of the biggest threats to a startup’s survival is compliance. Our PEO partners specialize in employee-related compliance and can guide you through the ins and outs of compliance.
Some advantages of using a PEO during the start-up phase:
- Early affordable access to technology
- Access to top-tier medical, dental, vision, disability, and life insurance
- Access to expertise across HR, payroll, benefits, workers’ compensation, and safety
- A high level of sophistication at a low out-of-pocket cost
Growing a Company with a PEO
Growing a company is typically the primary goal of all business owners. Many business owners feel that if you aren’t growing, then you are shrinking. This is a stage in building business that the PEO model can help support business needs. As a business grows, there are hundreds of federal and state laws that businesses must comply with for different employee accounts. PEOs understand these thresholds and have systematic processes in place for the time when the employer reaches those points.
When you are working with a PEO, adding employees quickly is much easier because they have the scale and expertise to recruit, onboard, enroll, and oftentimes train the employee through the entire process.
Some advantages of using a PEO during the growth phase include:
- HR experts that understand compliance for large employers
- Access to technology that delivers seamless recruiting and onboarding
- Premier benefit plans to help recruit in a competitive market
- Known costs as you grow without hiring additional internal staff to manage business needs
Mergers and Acquisitions with a PEO
As many companies grow, there is usually a point where a business owner has the ability to acquire a business or sell their own business depending on the goals of the owner. In both cases, a PEO partner will help maximize and retain value during transition. In the modern business landscape, HR should have a seat at the table during mergers or acquisitions. Oftentimes the staff is a business owner’s largest asset and require clear and compliant communication. Having a PEO partner secured before the transaction occurs will typically ensure a smoother transition process.
Some advantages of using a PEO during an M&A include:
- Clear costs that can be identified on a balance sheet
- Experts in compliance that can advise on messaging to the staff
- HR team that can scale for both onboarding and offboarding employees
- Increased value through efficiency across HR, benefits, payroll, and workers’ compensation