Many startup companies get overwhelmed with the infrastructure of their business once they strike growth mode. In a forbes.com article by David Williams, he outlined six strategies for “startups to bust out of the pack and create lasting success.” Those suggestions include:
2. Hire a virtual assistant
3. Hire a PEO
A Professional Employer Organization, or PEO, is like the fairy godmother of the small business world. A PEO scoops up all the administrative headaches and gets you back to your booming business.
You handle the worksite responsibilities and decision making while the PEO has the fiduciary responsibility of handling administrative tasks, such as payroll and benefits. The paychecks will come from the PEO with all of the taxes, benefits, and any other withholdings already taken care of.
The PEO also has access to large group benefits that your employees can access just by becoming a client; benefits that will make you a more attractive employer. Additionally, in terms of tax withholdings, because taxes are filed using the PEO employer identification number, the IRS or state tax commission will pursue any problems, penalties, or inconsistencies with the PEO rather than your organization.
According to Michelyn Farnsworth, CEO of Stratus.hr, “Most employees want to work for a small company because they feel more valued, but don’t want to sacrifice the perks of working for a large organization. By outsourcing with Stratus.hr, employees can have both.”
Bottom line: If you’re a small business planning to grow, then outsourcing to a PEO is a critical decision you can make to help your business succeed. A September 2014 publishing of “Professional Employer Organizations: Keeping Turnover Low and Survival High” reported that: The employee turnover rate for PEO clients is 10 to 14 percentage points lower per year than that of comparable companies.
Businesses that use PEOs are approximately 50 percent less likely to fail from one year to the next when compared to similar companies. PEOs significantly decrease employee turnover for their clients.
4. Stay in the Cloud
5. Don’t Spend Your Resources On Expensive Sales People
6. Be the Outsource
Simplify your life. Contact us today to learn just how affordable (and smart) outsourcing really is.