In addition, the PEO implements a risk management program to prevent future losses and lessen the amount of employee turnover. For industries with safety issues, the ability of PEOs to lower claims and costs is certainly a hot button. Turnover translates not only into lost sales, but also separation, vacancy, training and replacement costs. PEOs aim to alleviate the problem by finding and retaining quality hires, initiating workplace incentives through employee education, and providing affordable benefit programs in addition to lowering workers' comp claims. Employee training and education is often left by the wayside, mainly due to the belief that management can effectively juggle sales, human resource administration, customer relations, hiring, firing AND training.
Sales ultimately suffer.
Probably not many. And, as we enter a season of corporate cutbacks and layoffs, the focus on efficiency will be ever so sharp. The average size of a company that partners with a PEO is around 15 employees, and you can almost bet that Aunt Bertha or Uncle Wally got them into some hot water in the pre-PEO days. While Aunt Bertha and Uncle Wally may still be learning how to use e-mail, PEOs recognize the need for continually monitoring changes in employment laws, tax codes, safety standards, etc. so that their partner companies can focus on generating more revenue. In the vein of progress, PEO growth over the past five years has been nothing short of phenomenal.