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PEO Solutions with an Insider’s Edge

Wednesday, September 18, 2019

With research showing that small businesses that use professional employer organizations (PEOs) grow at a rate 7% to 9% faster than similarly sized businesses that don't, it is little wonder that the industry continues to grow at a steady rate.

A 2017 report for the National Association of Professional Employer Organizations (NAPEO) by economists Laurie Bassi and Dan McMurrer found that partnering with a PEO for human resources and other services was associated with a range of favorable outcomes for small and mid-sized businesses.

PEOs offer payroll, benefits, HR, tax administration, regulatory compliance assistance, and many other operational services to their clients.

Here’s a snapshot of advantages identified in the study:

  • Annual median revenue growth two times greater than non-PEO firms
  • 16% more likely to report increased profitability than non-PEO firms
  • Less likely to have significant concerns around hiring, capital raising or revenue growth
NAPEO growth factors infographic

Study: Employees of PEO Clients Have More Favorable View of their Employers

The advantages extended to the workforce, with employees of PEO clients more likely to report a favorable impression of their employers’ hiring practices, HR policies and training and development opportunities. Not surprisingly, those are also employees who are more likely to stick around, with an 8% higher rate of reported likelihood to stay on through retirement.

Perhaps the report’s most telling statistic however, is the fact that 98% of PEO clients surveyed reported that they would recommend the practice of using a PEO to their small business colleagues.

A Former PEO Shifts to Finding Solutions for Industry's Biggest Challenges

The findings are good news for both PEOs and their clients. However, like any industry, there are challenges.

Our partner Worklogic EPS has built their business around providing solutions for PEOs, with an Enterprise Productivity Suite that has 25 years of PEO experience built into it. The company, a former PEO that partnered with FBG company Payroll Tax Management (PTM), offers a customizable platform of HR services and sales software for PEO clients. It's a system they built themselves after a previous operating system was acquired by another company more than a decade ago when they were still operating as a PEO. The new company would have required them to move to a competitor’s system with a cost five times more than what they were used to.

Instead, they developed their own, adding the features they knew would help streamline their work as a PEO, beginning with sales software that could track estimated profits and costs.

“It was an evolution – trying to solve a problem, investing in our own development and recognizing that there was a great need in the industry too,” said Worklogic EPS Sales Manager Brooks Douglass. “We just kept up with the industry. We knew that the HR system was going to be very big.”

Worklogic logo

Today, Worklogic EPS offerings have grown to include:

  • Onboarding
  • CRM
  • Payroll
  • Document and case management
  • ACA reporting
  • Administrative services
  • Time & Attendance
  • Integrated payroll tax management through PTM

The company continues to innovate ways to meet the needs of its small to mid-size PEO clients whose challenges include compliance and risk management, payroll processing, transitioning from paper-based onboarding and security issues – and doing it all in a cost-effective way. They understand that the PEO industry is very price sensitive and not all PEOs need all the bells and whistles on the platform. Partnership PTM means Worklogic EPS users can now take advantage of an integrated system for full-service payroll tax management.

Partnering for PEO and Payroll Related Solutions

It’s a partnership that has allowed Worklogic EPS to expand its suite of solutions without having to build additional platforms and tax forms. “Our clients really like it,” says Kumi Fernando, who oversees implementation and product management at Worklogic. “The services are very easy to use and … reduce operational overhead for our clients.”

At FBG, we are committed to helping our clients in the payroll, PEO and ASO industry streamline their operations and scale effectively. Our partnerships with companies like Worklogic EPS allow us to provide an even greater range of solutions as well.

To learn more about the solutions provided by our family of companies, visit the Payroll Tax Management website or click on the link below.

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