Why Are PEOs in High Demand – Employer Solutions Plus

Did you know that the PEO industry is rapidly growing?
According to NAPEO, in just one year (2010) the industry grew by $10 billion – shaping an industry that has $80+ billion in gross revenues each year and still has room to grow!

If you’re unfamiliar with the PEO business model you may be wondering why they are in such high demand among businesses of all sizes.

While PEOs are seen as business “life savers” for a number of reasons including but not limited to payroll support, improved benefits packages, and providing various forms of insurance, we believe the primary reason for this industry’s recent boom is based on shared liability and compliance.

As employment law and compliance experts, PEOs help protect businesses from:

Wage and hour violations
Workplace safety violations
Workers’ compensation and insurance violations
Employee benefits security violations
Equal Employment Opportunity Commission (EEOC) violations
And more!

Because employment law is full of time consuming and confusing fine print (that changes all of the time), and because many business owners do not have a law degree, it’s simply not worth the risk of operating out of compliance standards. The penalties could debilitate your organization’s cash flow.

In the past few months, we’ve seen even more businesses jump on board with PEOs because of healthcare reform in itself. Whether it’s a business owner with 5 employees, or 50, nearly every one of them is feeling perplexed. So, if you read this and think “this is me,” you are certainly not alone!

For organizations that do engage a PEO and “offload” compliance responsibilities, every other aspect of the PEO business model is simply icing on the cake. To learn more about the PEO business model, contact our team at Employer Solutions Plus.