Working with a Professional Employer Organization (PEO) is beneficial for small or new businesses. PEOs can help businesses with the tedious employee administration tasks that require a lot of attention. PEOs also provide various services such as payroll, employee benefits, safety training, compliance issues, and employee onboarding.    

Outsourcing of HR related functions is one of the ways PEOs help small businesses save both time and money. Here are some examples of cost savings PEO clients experience: 

Avoids fines and penalties 

HR Outsourcing will help your company avoid fines and penalties. There is a lot of time-consuming paperwork that must be handled properly when running a business. These important documents can be mishandled by under-trained staff, which can lead to unnecessary fines and penalties.  

When businesses work with a PEO, they can be assured that all their paperwork will be properly handled and completed correctly. This will not only help avoid fines and penalties, but it will allow employers to have peace of mind knowing that deadlines will be met, and paperwork will be organized.  

Reduces hiring costs  

The average cost of hiring a single employee is $4,000, so this can make hiring an entire HR department expensive. Instead of creating job posts, interviewing various candidates, and paying salaries, it can be more cost effective to work with a PEO. A PEO will take on the HR department’s role, which will eliminate the costs that go into hiring several HR specialists.  

Training new hires is also expensive and time-consuming, but necessary, for positions like HR. The average training cost per employee is $1,252, and employers dedicate roughly 33 hours to training new hires. However, if a small business works with a PEO, they will not have spend time and money on training new HR hires.  

Prevents costly workplace accidents  

On-the-clock accidents can be costly and can lead to workers’ compensation claims. Severe workplace injuries lead to increased insurance costs, paperwork, loss of productivity, and damage to property or equipment.  

To help avoid workplace accidents, a PEO will help formulate a risk management and employee safety plan for your company. And, if an employee were to still get injured, a PEO will be there to help you navigate workers’ compensation and ensure the best possible outcome for the company and the injured employee. 

Additional cost – saving benefits of outsourcing  

As a small business, outsourcing your HR to a PEO often gives you access to group benefits that are far more expansive and less expensive than what you could find on your own. This can often mean big cost savings on employee benefits.  

Additionally, many small business leaders are surprised by the amount of time they spend on employee administration. Leaders that can refocus this effort on the growth and success of their business find that the time savings also relate directly back to their bottom line. 

If you have questions about HR outsourcing, PEOs, or the services Helpside offers, reach out to us at