Is There A Common PEO Client Size?
According to industry data, the average size of a PEO client is 19 employees. To some small businesses, this may seem like a lot. Though this is a common size, PEOs are designed to accommodate any client size, from one or two employees to 100 or more. If you’re joining late and are finding yourself wondering what exactly a PEO is, don’t worry! You can check out our explanation here.
How a PEO Helps Small Companies
Companies with only a few employees can benefit from the services offered by a PEO. How?
- By gaining “big-company” buying power
- Accessing the resources available to outsource tasks that are not considered a part of their core services, such as payroll, benefits, and HR
- Avoiding penalties by making sure that they are in compliance with all HR related laws
Time for an example!
If the owner of a small company with only five employees wants to attract top talent, he will need to provide good benefits. A PEO can help him do this in the most cost-effective way possible. After partnering with the client, the PEO becomes a co-employer of the small company’s employees. Consider the PEO a large company because it is “employing” all client employees. This allows the PEO to offer access to benefits that are typically only for larger businesses. Now, a small business can attract and retain top talent, especially when competing with larger companies. Make sense?
How a PEO Helps Mid-Sized to Larger Companies
In addition to small businesses, mid-sized and larger companies also benefit from the services that a PEO offers.
A larger company can tap into a PEO’s training and technology resources. These are strategically designed to place key people in more strategic roles. You can also use these resources to place specific employees in roles where they can accomplish special projects they don’t normally have time for on their own.
Optimum Employer Solutions’ PEO Services
If you need help with human resource functions or if you want to offer your employees access to better benefits, you should not disqualify yourself based on your business’s size. Be sure to speak with a trained PEO representative at Optimum Employer Solutions. Rather than focusing on your size, move the focus to what you would like to accomplish. If nothing else speaks to you, at least focus on what you would like taken off of your plate, such as payroll or other basic human resource tasks. Optimum Employer Solutions is happy to provide these many services as well as offer access to a wide range of retirement and benefit plans that will provide your employees a range of valuable options.