Companies worldwide were faced with several challenges when the pandemic began—hit by shutdowns, labor shortages, and, in many cases, permanent closure. But new statistics show that companies that rely on Professional Employer Organizations (PEOs) for HR or other professional services have fared much better than other companies throughout these trying times.

According to a report from the National Association of Professional Employer Organizations, PEO clients were half as likely to have permanently closed during the pandemic. PEO clients also experienced fewer negative impacts from the pandemic and were more likely to retain employees despite labor shortages.

PEOs Help Businesses Adapt to Change

The pandemic completely shifted paradigms related to work and business. Suddenly employers were asked to develop new policies from scratch, comply with new government regulations, and find ways to protect their employees from COVID exposure. PEOs are built for dealing with change, and their success in the pandemic demonstrates their ability to help clients stay on track even during tumultuous times.

Let Your PEO Handle the Paperwork

Many of the small businesses that survived during the pandemic took advantage of the PPP loan program. While these loans were widely available, the process of applying for the loan was too complex for many overwhelmed business owners. PEO clients were 71 percent more likely to have received a PPP loan during the pandemic than other businesses. They were also more likely to have had their loans forgiven.

PEOs are Experts at Recruiting and Retaining Employees

The pandemic has created an ongoing labor shortage for almost every business. Still, PEO clients have seen 81 percent higher employment growth over the last six months than businesses that do not use a PEO. PEOs are familiar with the best ways to attract talent to a company, and they have a variety of strategies to help retain employees once they’ve been hired.

Interested in Working with a PEO?

If you’re ready to learn more about how a PEO can help your business, contact LBMC Employment Partners today. Our experts are here and ready to help.

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, Payroll Tax Outsourcing, Human Resource Consulting, Employee Benefits, and ACA Compliance Consulting. For more information visit www.lbmcep.com.