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If you’re a business owner who shudders at the thought of outsourcing HR functions, you’re not alone. The idea of relinquishing control might make you feel uneasy, like you’re handing over the keys to your kingdom. But here’s a surprising twist: partnering with a Professional Employer Organization (PEO) doesn’t mean giving up the reins. In fact, it might just be the strategic move that frees you up to steer your business with greater precision.

PEOs by the Numbers

A PEO is a firm that enables small and medium-sized businesses to outsource key HR management and employee benefits tasks. This includes payroll, workers’ compensation, employee benefits, and compliance management. Essentially, a PEO enters into a co-employment arrangement with you, where you retain day-to-day control over employee management, while the PEO handles the administrative heaviness.

Demand for this co-employment model has grown in recent years. In fact, according to a 2022 NAPEO survey of more than 500 business owners and decision makers, 33% of respondents reported using a PEO. Just last year, a similar survey revealed that 17% of all businesses with between 10 and 99 employees used one. These corporate leaders didn’t “turn over” their employees or lose control of vital business functions. On the contrary, they benefitted from the partnership by offloading complex HR tasks (with the right partner).

How much did they benefit? According to research by McBassi & Company on behalf of NAPEO, firms that utilize a PEO have 40% better revenue growth, 14-16% lower turnover rates, and are 50% less likely to go out of business than enterprises that do not employ a PEO. Not too shabby in our estimation.

Still think you’re in danger of losing control? Let’s break down exactly how PEOs free you up to do your best work:

Retain Your Grip on the Wheel

The biggest misconception about PEOs is the fear of lost autonomy. But here’s the catch: the control you think you’re giving up is often replaced with getting a better grip on your business operations. How? By unloading the burdensome tasks that eat up your day, you’re free to focus on core activities that drive business growth and enhance your competitive edge.

PEOs handle the complexities of employment regulations, which are often a minefield for business owners. Staying compliant with labor laws, tax codes, and health regulations is not just complicated—it’s fraught with risks that can lead to costly penalties. With a PEO, you leverage the expertise of seasoned professionals who stay on top of these regulations, allowing you to breathe easier and focus on your business strategy.

Scale with Flexibility

One of the eternal truths of business growth is that the more your company grows, the more complex it becomes to manage. A reputable PEO will be able to scale with your business. Whether you’re expanding from 10 to 100 employees, or entering new state markets, a PEO manages the complexity of scaling by adapting HR policies and ensuring compliance across different regions. This scalability is crucial for maintaining momentum without getting bogged down by administrative complexities.

Enhance Employee Satisfaction

Imagine improving employee satisfaction and retention without having to micromanage every detail of the HR process. PEOs offer access to comprehensive employee benefits that small to medium-sized businesses typically couldn’t afford or manage on their own. From health insurance plans to retirement accounts, these benefits not only attract top talent but also keep them. Happier employees translate into lower turnover rates and a stronger, more focused work environment.

Ethan Allen’s PEO Approach

Partnering with a PEO like Ethan Allen HR Services helps you maintain ultimate control over your business while effectively delegating the regulatory, compliance, and administrative tasks that can distract you from your main goals. You handle the direction of your company, and we manage the rest.

By partnering with Ethan Allen, your business gains access to Fortune 500-quality benefits such as extensive health insurance plans, life and disability insurance, and retirement savings plans like 401(k)s. Payroll becomes a breeze—we handle comprehensive payroll administration; federal, state, and local tax filings; and compliance with various employment laws, including the Fair Labor Standards Act.

Ethan Allen assists with HR administration and compliance, too, guiding you through the evolving maze of employment law. And, last but not least, we help you enhance workplace safety and risk management, offering robust training, regular safety audits, and comprehensive risk management strategies.

All clients of Ethan Allen get access to the Ethan Allen HR Cloud, our leading-edge online hub. Imagine all aspects of HR management discussed above, condensed into a single, streamlined interface. Your employees enjoy easy access to personal HR information, such as payroll details, benefit options, and leave balances, through our user-friendly portals. And you, ironically enough, gain greater control over the satisfaction of your workforce.

Stop Thinking of a PEO as “Losing Control”

The narrative that working with a PEO means giving up control is just that—a narrative. In reality, it’s a strategic partnership that strengthens your command over your business operations by removing unnecessary distractions. For those who feel uneasy about outsourcing, think of a PEO as a strategic ally that’s equipped to handle the back-end complexities of HR management, leaving you free to focus on growing your empire.

At Ethan Allen HR Services, we’ve been offering strategic PEO services to clients across New York State for more than 50 years, serving dynamic companies like yours with expertise, agility, and an extensive network of resources. If you run a business in or around the Hudson Valley, give us a call when you’re ready to loosen your grip on the critical HR processes that may be distracting you from driving growth.

Ready to work with your first PEO? We think the benefits will be a welcome surprise.


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