Under 20 Employees – Are you under 20 employees and wondering if a PEO is even the right decision? This is the common thought process for those that have not implemented a PEO into a business. There are multiple PEO’s that focus on this 1 – 20 employee company range. These PEO’s have built their service team and technology to service small companies in ways they should be serviced and priced from an administration cost.
The Sweet Spot
20 – 99 Employees – Company process, culture and government mandated compliance starts to change as you hit the 25, 50 and 100 employee mark. PEO’s help you navigate employee compliance and growing pains through employee lifecycles. At this size cost savings becomes very evident when moving onto a PEO to consolidate all tactical HR functions. For example, your EPLI insurance alone may cost you $15k annually and this is something that is free for your organization when you join a PEO
100 – 800 Employees – You are not alone in this state compliance and payroll battle when you choose to partner with a PEO. At this size, benefit premiums can also skyrocket out of control. On top of that, you could have an HR department of 2-7 employees. We find that those HR staff members should be high level strategic thinkers that focus on culture, employee engagement and recruiting while the PEO offloads administrative burden and controls benefit premium costs.