business growth

7 Benefits of Outsourcing Human Resources to a PEO

Outsourcing your administrative HR work won’t replace your job; it will allow you to focus on your employees. Here are the top benefits you’ll experience.



Small businesses are more likely to get overwhelmed with human resource (HR) tasks because every person tends to have responsibilities beyond the scope of their job title. Luckily, there are many outsourced options (such as a PEO) that can help take the burden off of your administrative work.

How is Outsourcing Human Resources Good for Your Business?

With the right HR Partner, you and your team will be able to improve overall efficiencies, cut costs, and streamline processes. It allows you and your employees to focus on achieving their objectives and adding true value to your business growth.

What Is A PEO?

A Professional Employer Organization (PEO) is a form of full-service human resource outsourcing. Historically, this has been referred to as co-employment. The PEO performs different employee administration tasks, such as payroll and benefits administration, on behalf of the corporation. While some may offer strategic services, no two PEOs are the same. That’s why it’s important to assess your needs before looking for an outsourced option.

Why Should You Use An Outsourced HR Solution Like A PEO For Your Small Business?

With the strategic guidance of an outsourced HR company, you’ll be able to focus on employee engagement, retention, and growth. The benefits of outsourcing human resources include:

1. Taking Tedious Administrative Work Off Your To-Do-List

Outsourced HR can help with all the administrative HR paperwork you have on your plate. From payroll to timekeeping and workers’ comp to benefits enrollment—you can offload these and many other manual tasks to the PEO support staff. 

Tasks that are normally time-consuming will now require you to simply check in and approve the work your outsourced HR partner does for you, which is a significant time savings in your day.

To learn more, see how much time administrative HR tasks could be taking from you.

2. Offering Professional HR Support When Needed

The outsourced HR’s role goes beyond administration help and includes consulting work for specific HR situations. If you have a difficult situation with an employee, your dedicated account manager will have resources available to help you.  This way, you can get straight to the source instead of spending hours searching online for the correct path to move forward.

Relying on murky internet results is a gamble, especially when taking into consideration the differences in personalities, precedences that have been formerly set, and state laws that vary.  Consulting your dedicated HR professional will ensure you get qualified, expert advice for your situation.

  1. Making The Hiring & Onboarding Processes Easier

The right outsourced HR partner will also have software that helps with the hiring process. You’ll be able to simplify and streamline everything, such as posting jobs, vetting candidates, extending offer letters, and onboarding new employees. 

This will also provide a great experience for your candidates, which sets the foundation for a good working relationship—something that is crucial to building a great workplace culture

4. Allowing You To Offer Great Health Benefits

Outsourcing HR to a PEO will make it possible for you to offer great employee benefits without the headache. They’ll also facilitate benefits enrollments and the endless administration tasks that come with insurance plans.

Offering a solid benefits package not only helps you retain your own employees, but allows you to be competitive as you work on hiring top talent in your field. 

5. Freeing Your Time to Focus On Retention

Another benefit of outsourcing your HR is that you’ll have more time in your day to focus on retention and growth. After delegating the majority of your time-consuming administrative tasks to your outsourced PEO partner, you can now turn your attention to your current employees. 

With emphasis on improving your workplace culture, you can track engagement, listen to employee feedback, and work on promoting a great work environment—all things that are proven to increase retention. If you get lost on your next steps, you can consult your dedicated account manager to learn best practices to move forward.

6. Staying Compliant With Labor Laws

With your PEO’s team working in the background, you’ll always know what’s required to be compliant, no matter how your workforce fluctuates. Rather than wishing you had known prior to getting hit with a penalty or fine, your outsourced HR partner will keep you informed about any updates that relate to you. 

Federal and state government procedures and regulations are dynamic and difficult to navigate. But having a team of human resource specialists that are in-the-know will relieve the burden and help protect your bottom line.

7. Creating A Healthier Working Environment And Happier Employees

Your employees want to know that you are listening to their needs, not overworking them, and that you care about their well-being. If you have too many administrative tasks weighing you down, your employees’ health and happiness take a backseat to more immediate work needs that must be met. 

With help from your outsourced HR partner, you’ll have the time (and access to helpful resources) you need to focus on your employees’ happiness. A positive work environment combined with happy employees leads to better morale, higher retention, increased productivity, and a great workplace culture.

Partner With Stratus HR, The PEO Of Choice Among Businesses

As you can see, there are many advantages to outsourcing your HR to a PEO like Stratus. HR outsourcing is a rewarding investment that helps you achieve your business goals and provides you access to cost-effective and scalable HR support and services.

At Stratus HR, we’ve been in the business for over 20 years and have refined both our software and services to make sure small- and medium-sized businesses have the time they need to focus on growth. To learn more about how we can help you reap the benefits of our partnership and focus on the people work that matters the most, book your free consultation with our team.


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