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    What Are the Benefits of Using a PEO for Small Businesses?

    As a business owner, are these tasks overwhelming you?

    • Payroll
    • Health Benefits and Administration
    • HR-Related Tasks
    • Workers’ Compensation
    • Compliance

    If so, working with a Professional Employer Organization, or PEO, could be your ideal solution. A PEO service provider can help your business streamline operations so you can become more efficient and profitable.

    PEOs specialize in the management of administrative and human resource functions. Think of it as your small business’ outsourced HR department. Working with a PEO can help small businesses like yours:

    • Attract and retain top talent
    • Ensure compliance with employment laws
    • Free up resources to focus on core business priorities, and
    • Realize cost savings from HR-related expenditures

    Staggering Cost Savings

    Consider the following statistics about businesses that partner with a PEO:

    • In 2020 alone, PEOs provided services for over 173,000 small- and mid-sized businesses, employing four million people.
    • Studies have found companies that partner with a PEO are 50% less likely to go out of business and experience 20% lower employee turnover than the national average.

    • The National Association of Professional Employer Organizations (NAPEO) found that the annual ROI from using a PEO is 27.2%! That’s an average cost savings of almost $2,000 per employee!

    Improving Recruitment and Retention

    According to Blake Hastings, SWBC’s SVP Corporate Strategy and Chief Economist, there are currently nearly two vacant jobs for every unemployed person in the U.S., so the labor market is historically tight.

    As a small business owner in a tight labor market, it’s vitally important to recruit and retain top talent. Developing a streamlined hiring process, offering robust benefits, and providing a safe work environment are all tasks a PEO can help with to support your recruitment and retention efforts.

    Other benefits of partnering with a PEO include:

    • Liability reduction
    • Scaled benefits procurements
    • Compliance expertise, and
    • Workforce optimization

    Not all PEOs Are Created Equal

    Not all PEOs provide the same level of service and value. It’s important to partner with a PEO that can provide:

    • Scalability for growing businesses
    • Flexibility to provide support where you truly need it, and
    • Access to high-quality health benefits at affordable prices

    Not all PEOs provide the same level of accreditation, either. At SWBC PEO, we have attained the three highest accreditations and certifications available in the industry:

    • We have accreditation from the Employer Services Assurance Corporation (ESAC), which is the Gold Standard for PEO best practices and financial reliability.

    • We have been named a Certified Professional Employer Organization (CPEO) by the Internal Revenue Service (IRS)—meeting tax status, experience, responsible financial reporting, and other requirements set in the statue.

    • SWBC is Workers’ Compensation Risk Management Certified by the Certification Institute.

    We prioritize communication and put a premium on partnership. We take a customer-centric approach and go the extra mile to truly understand our clients’ needs. 

    SWBC PEO also offers access to our comprehensive cloud-based HR technology software. This robust tool allows employees to easily manage their time off, check benefits, and more—making everyone’s life easier.

    We also leverage SWBC’s world-class cybersecurity system to keep client data secure and help our small business clients stay ahead of emerging cyber threats.

    We have the resources and expertise to ensure the job gets done right so can spend your time where it’s needed most.

    Learn how to combat the national labor shortage. Download the whitepaper!


    Norman L Paul, Jr., J.D.

    Norman L Paul, Jr., J.D. is CEO of SWBC PEO. He is responsible for overseeing the company’s professional employer services, including payroll, employee benefits and benefits administration, workers’ compensation, and HR support for more than 14,500 shared employees in Texas and 40 additional states. Norman also serves as Corporate Counsel for SWBC PEO, providing guidance on compliance issues and conducting client training.

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