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Professional employer organizations (PEOs) offer small and midsize businesses (SMBs) a long list of advantages, but one stands out above all the others. By relieving SMB leaders of some of the myriad distractions constantly competing for their attention, PEOs free them up to focus on driving business growth.
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“Nobody goes into business to deal with administrative tasks. They go into business because they are passionate about a product they designed, an invention they produced, or a cause they want to champion,” says Michael Mendenhall, senior vice president, chief marketing officer, and chief compliance officer at TriNet. “Very few entrepreneurs dream of spending their days recruiting talent, figuring out how to provide employee benefits, processing payroll, or staying on top of a litany of ever-evolving employer-related laws and regulations at every level of government.”
Those HR-related issues can rapidly take over business operations unless they are strategically and proactively outsourced early on, and that is where a PEO comes in, Mendenhall adds. “By helping SMBs to manage many employer-related responsibilities and liabilities, a PEO, such as TriNet, frees business leaders from the shackles of HR administration so they can focus on what matters most: growing their business and enabling their people.”
As Alex Quevedo, president of human resources outsourcing at ADP, points out, “The cost to do business is at an all-time high. A PEO helps you consolidate vendors, streamline processes, and mitigate some of your risk as an employer. But ADP doesn’t stop there. We go beyond to look at critical areas like designing the right benefit strategy, proactive risk mitigation, and