In the fast-paced and competitive landscape of the manufacturing industry, businesses face numerous challenges that can hinder their growth and success. One essential aspect that manufacturers need to address is human resources management. Finding the right talent, handling complex employment regulations, and managing employee benefits can be overwhelming for manufacturing companies. However, there is a game-changing solution: a Professional Employer Organization (PEO).

Understanding the Role of a PEO

A PEO is an outsourcing partner that handles the administrative and HR tasks for client companies, allowing them to concentrate on their core business operations. The services provided by a PEO include HR administration, payroll, benefits administration, risk management, and compliance. For manufacturing companies, partnering with a reputable PEO can be a strategic move that yields substantial benefits.

1. Streamline HR Processes

Manufacturing companies often encounter intricate HR procedures such as onboarding and training. By utilizing a PEO’s expertise, businesses can simplify these operations, minimizing the time and resources dedicated to administrative tasks. Experienced HR professionals and a full-suite Human Capital Management (HCM) system from a PEO can effectively assist with the hiring process, ensuring that suitable candidates with the required skills and qualifications are successfully integrated into the company.

2. Provide Comprehensive Employee Benefits

Competing for top talent in the manufacturing industry requires offering attractive employee benefits packages. A PEO can provide access to a broader range of benefits, including health insurance, retirement plans, and other perks, often at more affordable rates due to economies of scale. This ability to provide enhanced benefits can significantly improve employee satisfaction and retention. According to The National Association of PEOs (NAPEO), a PEO can decrease employee turnover by as much as 14%, contributing to a more stable and productive workforce.

3. Compliance and Risk Management

Manufacturers must adhere to various labor laws and industry regulations, which can be challenging to navigate without dedicated expertise. A reliable PEO keeps abreast of the latest legal requirements, ensuring that the client company remains compliant with labor laws, safety regulations, and reporting obligations. Furthermore, the PEO can assist in mitigating risks associated with HR and employee-related issues, reducing the potential for costly lawsuits or fines.

4. Optimize Costs

In the highly competitive manufacturing landscape, cost control is vital for sustaining profitability. By partnering with a PEO, companies can often optimize their costs. According to NAPEO research, the annual ROI from using a PEO is estimated at 27.2%. PEOs pool the employees of multiple client companies, which leads to economies of scale when negotiating insurance rates and other benefits. This collective purchasing power enables manufacturers to offer comprehensive benefits to their employees at a fraction of the cost of handling these services independently.

5. Focus on Core Business Operations

Manufacturers thrive when they focus on innovation, process optimization, and production efficiency. Administrative HR tasks can be time-consuming and divert attention away from core business objectives. A PEO handles the HR tasks, allowing manufacturing companies to concentrate on their primary competencies, driving growth and innovation.

6. Expert Guidance on Employee Relations

Maintaining healthy employee relations is vital for a harmonious work environment and increased productivity. A PEO’s HR professionals can provide guidance and support in managing employee conflicts, grievances, and performance issues. This assistance fosters a positive workplace culture and promotes collaboration among team members.

7. Our Unique PEO Advantage: Flexibility in Workers' Compensation Coverage

Unlike many other PEOs in the market that bundle workers’ compensation into their offerings, our PEO presents a unique advantage to manufacturing companies. If businesses are denied by our carrier for workers’ compensation coverage, it does not prevent them from joining our PEO. In such cases, they have the option to choose a different carrier while still benefiting from the comprehensive services our PEO provides. This flexibility makes our PEO an appealing option for manufacturing companies seeking to optimize their HR operations without being restricted by workers’ compensation limitations.

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Everybody we work with at EP is competent and helpful. We regularly ask them to perform miracles for us or bail us out of our own messes, and they never seem anything but patient and willing to help us.
VP of Finance at a Nashville manufacturing company

Let Us Support Your HR, Payroll, & Benefits Needs

The manufacturing industry faces various challenges, and efficiently managing HR functions is essential for businesses to succeed. A Professional Employer Organization (PEO) offers a powerful solution by streamlining HR processes, providing access to comprehensive employee benefits, ensuring compliance, and optimizing costs. The impact of a PEO on manufacturing companies is transformative, empowering them to focus on their core business operations while receiving expert HR support. By leveraging the services of a PEO, manufacturers can truly thrive in today’s dynamic and competitive market.

All content and services on this page are offered by LBMC Employment Partners, LLC. LBMC Employment Partners, LLC, is part of the LBMC Family of Companies and is an independent entity with services and products being provided exclusively by LBMC Employment Partners, LLC.

Learn about LBMC Employment Partners PEO services.

LBMC Employment Partners, LLC, a member of the LBMC Family of Companies, is a world-class professional services firm. LBMC Employment Partners provides a comprehensive suite of human resource-related services to businesses including Professional Employer Organization (PEO) services, HR Outsourcing (HRO), Payroll, Human Resource Consulting, Employee Benefits, and ACA Compliance Consulting. For more information visit