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Blog · Published: December 11, 2019 Updated: January 12, 2022

Why Do Companies Stay With a PEO

Why Do Companies Stay With a PEOCongratulations, your sales continue to increase!

At first, it may have been a little overwhelming to adjust to the increased demand. It can cause a ripple effect that’s hard to manage.

With new hires, you began spending more time managing HR: answering employee questions, researching benefits to help retain talent, crafting company policies to keep everyone safe, building a values-based culture and more. Since this isn’t your area of expertise, it takes a long time and pulls your focus away from revenue generating functions. Ultimately, you have to decide where to focus your energy and budget.

Outsourcing HR to a professional employer organization (PEO) can change the course of your company. In fact, businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business,* than businesses not using a PEO.

Oftentimes, clients don’t fully realize how much of their time is being dedicated to HR matters until a PEO comes aboard. There is great comfort knowing employee needs are taken care of and your company is protected from unnecessary litigation. Many clients can’t imagine their work life any other way. Since this decision comes with a price tag, you must determine if the value PEOs offer is the help you really need. A September 2019 white paper from NAPEO** identifies the top 3 PEO benefits:

  • Improving clients’ ability to attract, motivate, and retain employees;
  • Enabling clients to focus on their core businesses while PEOs handle all HR matters; and
  • Lowering HR-related expenditures

 
These findings help you understand why clients initially decide to partner and then stay with a PEO. Of course, there are other more qualitative reasons. MidwestHR enjoys a 96% client retention rate. We are incredibly proud of this metric because it tells us our clients continue to benefit from our partnership. We don’t just assume this, we’ve actually asked. In a recent survey, our clients shared why they choose to stay with MidwestHR:

“As a small organization, MidwestHR provides expertise that we could never develop internally.”

“We receive the best services and resources by all MidwestHR employees that we deal with on a weekly basis.”

“All of my experiences over the past 3 years of working with MidwestHR have always been positive and the knowledgeable team have helped me out of several tricky situations in the past that I could not resolve on my own.”

As a top PEO in Chicago, MidwestHR is constantly discussing how we can be more customer centric. We are committed to a “perfect 10” level of customer service in words and actions. We are honored that our clients initially choose and then stay with MidwestHR. To learn what is a PEO give us a call at 630-468-9286 to see if we’re the right HR partner for your company.

 

*Source: The State of the PEO Industry 2016: Markets, Value, and Trends, McBassi & Company, September 2016

**Source: The ROI of Using a PEO, McBassi & Company, September 2019

Filed Under: Blog

David Nauert

In his 17 years at MidwestHR, David has worked to create valuable partnerships with prospective clients & strategic alliances. As Director of Sales and Strategic Alliances, he leads the Business Development team with over 21 years of experience in the industry.

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*The IRS does not endorse any particular certified professional employer organization. For more information on certified professional employer organizations go to www.irs.gov.
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