This is a topic or question we hear quite often. Usually it is the client company posing the question.
The easy answer is that the employees of a PEO have access to the benefits package normally only seen at a Fortune 500 company. That is, major medical, dental, vision, 401k and various other insurance products. The economies of scale that the PEO enables for its client companies allows the employees to save quite a bit on the cost of benefits.
The longer answer is that the PEO has the human resources expertise to be sure that its shared employees are taken care of from a risk management standpoint as well. We often have business referred to us from employees of companies that were in a co-employment arrangement at a previous employer and have seen the benefits first hand.
By working with a PEO (professional employer organization) or other HR outsourcing provider, you have taken the first step in making your business one that potential employees will flock.
How so? Due to the nature of most HR outsourcing providers, including PEO, you are now able to offer a benefits package that is as good, if not better, than most Fortune 500 companies. Full health, dental, vision, 401k, short and long term disability…all at your employees’ fingertips.
In addition, due to the immediate economies of scale that you will recognize, these benefits will likely be priced lower than you can get on your own.