How Can a PEO Help My Business?

If you’re reading this, you’re most likely a small business owner wondering how you can stay competitive in an increasingly globalized world. Working with a PEO like Knit can help your company to flourish as we are passionate about watching you and your team succeed and achieve your goals.

If you’re looking to expand across borders, outsource daily payroll and HR tasks, or provide great opportunities and benefits for both you and your employees, partnering up with a professional employer organization (PEO) is in your best interest. A PEO can be an advantage in terms of bridging cultural differences when hiring abroad, scaling your business, providing flexibility, and offering risk protection.

A PEO can help to bridge cultural differences or language barriers when hiring abroad

Many companies choose to partner with a PEO as they offer the opportunity to expand on an international level, also helping to manage your overseas workers. Not only do PEOs hire and manage these employees, but they are also helpful as they have the knowledge to bridge cultural differences and overcome language barriers, making your business more likely to succeed in a new environment.

Knowing the language and culture of a country can make the process of hiring employees easier, along with reducing turnover rates as it ensures that employees feel comfortable in their work environment. This also helps to increase your client base, as individuals are more likely to choose the option that speaks their language when pursuing services to solve a problem that they are facing.

If you’re also planning to relocate employees to a new country, a PEO can help them to settle in and navigate through the logistics of moving. As PEOs are experts on international compliance, they are invaluable while expanding abroad.

PEOs can help to scale your business

Did you know that companies who choose to work with a professional employer organization grow on average 7-9% faster than their competitors? This is a result of PEOs taking over responsibility for everyday administrative operations including payroll, onboarding of new employees, compliance, taxes, workers compensation, benefits, and other HR duties.

Outsourcing these tasks is beneficial as it allows you and your team to focus more on growth-related tasks such as marketing, sales, customer service, and product development. 

How a PEO can allow your business flexibility

Working with a company in the professional employer organization industry allows your business more flexibility than it would have traditionally. 

With a PEO, you can easily hire or terminate employees and adjust contracts according to your changing business needs. For example, if your business is experiencing quick growth, a PEO allows you to hire and onboard new employees efficiently to keep up with work demands. 

The need for flexibility is increasingly relevant pertaining to COVID-19, as lockdowns increase the incidence of layoffs. In situations such as these, a PEO allows you to adjust contracts rather than needing to completely terminate employees.

Collaborating with a PEO also empowers your business concerning flexible employee pay. For example, pay can be easily modified in times of layoffs. If an employee is terminated, the PEO is also responsible for paying severance rather than your business.

PEOs can protect your business

A common reason why many small businesses choose to work with PEOs is risk protection, and it’s no surprise why after learning that 33% of American small businesses get fined for payroll errors each year. A professional employer organization works to offer risk protection through their compliance expertise and taking on business-related liabilities.

PEOs employ experts in payroll and tax related compliance, but also in HR areas such as workplace safety through training and services such as OSHA inspections. This protects businesses by minimizing the chance of errors and accidents occurring in the first place. Workers compensation insurance may also be offered in a PEO benefits package.

Final thoughts

In today’s unsure post-COVID economy, working with a PEO means that you’re 50% more likely to stay in business. Of course, PEOs aren’t one-size-fits-all, and it’s important to conduct research when choosing one for your business. What is important to keep in mind when finding a professional employer organization is your business needs, customer reviews, and accreditation.

If you are searching for a professional employer organization located in Canada, Knit is a great choice. Reach out to our customer service team to learn more about how we can help your small business and the services that we provide.