7 Key Benefits of Partnering with a PEO for HR Outsourcing

Discover the top 7 PEO benefits that can revolutionize your HR department & elevate your business. Unlock the full potential of your HR strategy!



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 professional employer organization) that can help take the burden off of your administrative work.

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.

Is Outsourcing Human Resources to PEOs Beneficial?

PEOs are HR outsourcing companies that are able to handle a wide range of HR functions on behalf of a business, whether small, medium, or large, allowing them to focus more on their core business functions.

PEO services typically include payroll processing, benefits, risk management, and compliance to help small businesses streamline their HR processes and reduce their HR-related risks and burdens. 

7 Benefits of a PEO that Elevate HR Management 

With the strategic guidance of an outsourced HR company, you’ll be able to focus on how to retain employees, boost employee engagement, and increase employee morale. 

The ultimate benefits of outsourcing human resources to a PEO are:

Benefit #1. Cost Savings and Increased Efficiency 

Outsourced HR can help with all the administrative HR paperwork you have on your plate. From payroll processing to timekeeping and workers’ compensation coverage 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-saving in your day.

You’ll be surprised to discover how much time administrative HR tasks could be taking from you.

Benefit #2. Access to HR Expertise and Best Practices

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.

Benefit #3. Streamlined Employee Administration & Retention

Once you’ve successfully delegated the majority of your time-consuming administrative tasks to our outsourced PEO partner, you can turn your attention to your current employees. 

By analyzing engagement, listening to employee input, and creating a positive work environment, you can focus on improving your workplace culture to enhance employee retention.

If you get lost on your next steps, you can consult your dedicated account manager to learn the best practices for moving forward. 

Benefit #4. Enhances Employee Benefits Offerings

Outsourcing HR services 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. 

Benefit #5. Reduced Risk and Improved Compliance 

You can reduce the risk of non-compliance by outsourcing your HR services to a PEO that can help you navigate complex employment laws and regulations.

Dedicated HR professionals stay up-to-date on regularly changing labor laws and regulations to ensure your business remains compliant. Professional employer organizations can also assist with risk management strategies like providing guidance on the best practices for handling employee issues, managing workplace safety, and conducting investigations. 

Benefit #6. Access to HR Technology and Tools

PEOs provide small businesses with access to technology and tools that can streamline HR processes and improve efficiency. 

PEO-provided HR software solutions, like those offered by Stratus HR for example, are able to automate tasks such as processing payroll, timekeeping, and administering benefits packages and health insurance, which reduces the need for manual paperwork, further streamlining your HR tasks.

Partnering with a PEO that can integrate HR systems and processes can also help to ensure the quality and consistency of data, reducing the number of errors and the amount of administrative strain on your HR team. 

Benefit #7. Support for Remote and Hybrid Workforces

As hybrid and remote work become more common, your employees want to know that you are listening to their needs, not overworking them and that you care about their well-being. PEOs can help provide support for managing remote and hybrid teams by offering guidance on the procedures and policies surrounding remote work.

Small businesses can ensure compliance with applicable laws and regulations by using tools and resources provided by the PEO that promote remote collaboration in engagement. You can effectively manage remote and hybrid work by partnering with the expertise and support of a PEO.

A PEO can provide access to HR knowledge and technology, cost savings, easier administration, lower risk and greater compliance, and so on. Using a PEO to manage human resources can improve employee engagement, retention, and overall business success.

PEOs can give you access to benefits packages that normally would be unaffordable for small businesses.

Are You Ready to Explore PEO Options for Optimizing Your HR Management?

Overall, partnering with a PEO such as Stratus HR can transform your HR management by providing expert guidance, cost savings, streamlined administration, enhanced benefit offerings, reduced risk, and improved compliance, access to cutting-edge HR technology, and support for remote and hybrid workforces. 

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 businesses, and medium-sized ones too, have the time they need to focus on growth. 

Don't pass up the chance to improve your HR operations and increase employee engagement, retention, and growth. Partner with Stratus HR today to take the first step towards HR excellence. 

To learn more about how we can help you reap the benefits of our partnership and focus on the work that matters the most, book your free consultation with our team.

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