About PEOs

The need-to-know information on PEOs.

PEOs: Fueling Business Growth

PEOs (Professional Employer Organizations) have served small businesses for more than 30 years.  They were founded to fill the gap for first-class HR support and benefits for small to mid-sized businesses, who typically don’t have the resources to have an in-house HR department, but most definitely have the need for HR services.  Currently, PEOs serve more than 150,000 businesses and 3 million employees in the U.S. But what is a PEO?

PEOs by the Numbers

  • Faster Growth. Over the past 15 years, employment at small businesses using PEOs has grown between 7 and 9 % faster than small businesses overall.
     
  • Lower Turnover. Small businesses that have used a PEO for at least four quarters have experienced employee turnover at rates 10 to 14 % lower than the average rate for U.S. businesses.
     
  • Greater Longevity. Privately held businesses that use PEOs are approximately 50 % less likely to fail (permanently cease operations) when compared to similar U.S. companies.

You’ve Got Questions. We’ve Got Answers.

Professional employer organizations (PEOs) provide human resources services for their small business clients—paying wages and taxes and often assisting with compliance with myriad state and federal rules and regulations. 

In addition, many PEOs also provide workers with access to 401(k) plans, health, dental and life insurance, dependent care, and other benefits not typically provided by small businesses. In doing so, they enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll, and workers' compensation. PEO clients can thus focus on their core competencies to maintain and grow their bottom lines. 

Business owners want to focus their time and energy on the "business of their business" and not on the "business of employment." As businesses grow, most owners do not have the necessary human resources training, payroll and accounting skills, knowledge of regulatory compliance, or backgrounds in risk management, insurance and employee benefit programs to meet the demands of being an employer. PEOs give small-group markets access to many benefits and employment amenities they would not have otherwise.

A PEO's economy of scale enables each client company to lower employment costs and increase the business's bottom line. The client can maintain a simple in-house HR infrastructure or none at all by relying on the PEO. The client also can reduce hiring overhead. The professionals at the PEO can provide critical assistance with employer compliance, which helps protect the client against liability. The PEO client can access significant technology and service infrastructure provided by the PEO. In addition, the PEO provides time savings by handling routine and redundant tasks for its clients. This enables the business owner to focus on the company's core competency and grow its bottom line.

PEOs are generally the best fit for small- to mid-sized businesses that have fewer than 250 employees.

Axcet works with clients who have a presence in 46 states within the United States. So multi-state and long-distance support are never a problem.

That said, we find that we work best with businesses that are headquartered within 250 miles of Kansas City because we're better positioned to provide that hands-on access that our clients come to really appreciate.

Expertise You Can Use Now

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What Is a PEO and How Can It Help Your Business?

When small business owners reflect on how their companies are performing, they often realize they’ve been working round the clock, juggling multiple roles, drowning in paperwork and have been unable to focus on their strategy for continued business growth. In fact, a Wells Fargo/Gallup Small Business Index survey found 57 percent of ...

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PEOs Are Not All Created Equal. Choose Wisely.

So you’ve decided to hire a professional employer organization, or PEO, to perform critical human resources functions for your small business, limiting your legal liability and leveraging economies of scale to improve your benefits package. Smart move. That PEO partnership will give your company powerful ...

Why Axcet?

Let’s face it.  When it comes to managing HR, you have choices.  So, why choose Axcet?

We believe in trust, relationships, and an undying commitment to our clients’ success.

We believe experience and expertise matter when you’re faced with tough choices and need a trusted advisor to help.

We believe we’re at our best when we’re helping your business grow in ways you couldn’t have imagined.

If we sound like a company you’d like to partner with, let’s talk.

Gerald Jerry Diddle President and Founder Axcet HR

Got PEO Questions? Start a Conversation.

Grow your business 7-9% faster with 10-14% less turnover with a PEO. Axcet has been helping Kansas City businesses for more than 30 years. Grow with us starting today.

Schedule a consultation with Axcet today.

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