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Wondering what the PEO experience is really like?
For many small and mid-sized businesses, partnering with a professional employer organization (PEO) means less time on HR tasks and more time growing their companies.
But the PEO experience is about more than outsourcing. It’s a collaborative relationship that improves operations, builds a stronger workplace and supports your team at every stage.
In this post, we’ll break down what the PEO experience looks like — and why so many small business owners say they’d never go back.
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A study conducted by the National Association of Professional Employer Organizations (NAPEO) shows just how clear the employee-focused benefits of PEOs are. NAPEO used “comprehensive survey data from both small and mid-sized business owners and their employees,” and compared the responses of non-PEO clients’ employees to those at companies that had partnered with a PEO.
The study found many significant differentiators, including:
The survey found that employees of non-PEO clients were almost twice as likely to report that they “expected to leave” their employer “sometime in the next year” than employees of PEO client counterparts.
Conversely, employees of PEO clients were much more likely to indicate that they “expect to work” for their employers “until they retire” than employees of non-PEO clients. And interestingly, the longer a company had been a PEO client, the greater their employees’ intent to stay turned out to be.
Compared to employees working for non-PEO client businesses, employees of businesses that used a PEO were significantly more likely to report that their employer:
In short, companies that partnered with PEOs (and stuck with them) saw much higher levels of employee satisfaction as well as a greater outlook on employee retention than companies that went at their HR tasks alone.
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At Axcet HR Solutions, we believe the difference employees of PEO-partnered businesses feel comes down to the extraordinarily high level of support a great certified professional employer organization offers—support that strengthens workplace culture, builds trust, and contributes to long-term retention.
From access to Fortune 500-level employee benefits to expert HR guidance and personalized employee development programs, PEOs help businesses invest in their people in meaningful ways.
In the sections that follow, we’ll explore five key PEO benefits that can dramatically improve employee satisfaction—and, in turn, boost retention—so you can determine whether partnering with a PEO is the right move for your business.
PEOs play a pivotal role in fostering employee satisfaction. Through affordable benefits, timely payroll, a seamless employee lifecycle experience, proactive workplace safety measures, and opportunities for professional growth, they holistically address the facets that drive satisfaction and, in turn, boost retention rates. As we dive into each aspect, it becomes clear how PEOs are transforming the employee experience at its core.
With a PEO, you can expect:
According to the National Federation of Independent Businesses’ Executive Director of Research, Holly Hade, “Unfortunately, almost all (98%) of small employers offering health insurance are concerned that the cost of providing health insurance to their employees will become unsustainable in the next 5-10 years.”
Healthcare PEOs enable small to mid-sized businesses to offer low premiums on group employee health benefits that might be out of reach otherwise. By providing competitive benefits, employees are more likely to be satisfied and stay with the company.
When small businesses partner with a PEO for health insurance, they may be able to become part of the PEO’s larger employee pool—and therefore, the PEO’s bargaining power. As an added benefit, the PEO can handle a wide range of related tasks for the small business, such as payroll, tax administration, and administrative support.
RELATED: Why You Should Hire a PEO To Save on Employee Health Insurance >>
PEOs use advanced payroll software that helps companies ensure their employees are paid correctly, on time, and in compliance with all federal, state and local laws. Axcet HR provides accurate payroll administration and easy-access payroll information through an online portal.
We’ve seen first-hand how the reliability this system offers can improve trust and satisfaction within an organization. Plus, employees are able to access and download their payroll and tax information anytime, from any device.
PEOs offer professional HR support that spans the entire employee life cycle. In turn, partner companies see a shift toward a more positive workplace culture.
PEOs can assist with employee onboarding, employee development, performance management and compliance with labor laws, all of which contribute greatly to a more satisfying work environment.
A strong PEO can provide comprehensive workers' compensation insurance and employee safety support to businesses and their employees. A PEO with safety experts on their team can conduct a thorough risk assessment of your workplace, and then work with you to develop strategies to address gaps from safety and regulatory standpoints and create effective solutions and mitigation strategies.
Sometimes, accidents happen, and when they do, PEOs manage workers' compensation claims efficiently, reducing the administrative burden on employers and ensuring that employees receive their benefits promptly.
Axcet HR’s safety team includes a risk manager, claims manager and safety and health consultant – each with decades of experience to serve you. This focus on safety helps employees feel valued and protected, contributing to higher levels of satisfaction and retention.
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When employees feel they’re being invested in, they’ll invest their time right back into their employer. That’s why customized employee leadership and development programs are so crucial to satisfaction and retention.
While small businesses and lean start-ups often just don’t have the time to spend on developing these kinds of programs, PEOs can focus time and energy on tailoring initiatives that meet the specific needs of businesses and their leaders.
At Axcet HR, we design training, career development, employee assistance programs, wellness programs and more that work for your unique business needs. In turn, these personalized initiatives show that the company values and invests in its staff, boosting morale and encouraging long-term commitment.
RELATED: Why Use a PEO Instead of an In-House HR Person >>
When you choose Axcet, you’re not calling a 1-800 number or working with someone new each time. You’re getting a dedicated team that learns your business inside and out. The PEO experience with us means better processes, better support and better outcomes — for you and your employees.
The PEO experience with Axcet HR Solutions is more than transactional — it’s a hands-on, day-to-day relationship that helps your team thrive.
Wondering if outsourcing human resources is the right call for you? Reach out to our consultants today to learn more.
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