LBMC Employment Partners, LLC, a leading Professional Employer Organization (PEO), HR outsourcing, payroll service bureau and benefits broker, is partnering with an increasing number of business owners, human resources managers and C-level leaders as they turn to the company’s PEO experts to help navigate rising costs, inflation, and talent shortages while enhancing overall performance and providing a better employee experience.
Benefits of a PEO drive double digit growth and retention
“We are seeing an unprecedented surge for our PEO services helping organizations pilot the current environment of increasing benefit costs, staffing issues, and overall HR management needs,” says Sharon Powlus, President, and CEO of LBMC Employment Partners. “Our PEO is a comprehensive outsourced human resources (HR) solution for an organization. By offering everything from payroll management to employee onboarding to benefits negotiations, LBMC’s PEO provides a human resources one-stop-shop, augmenting the current HR team or providing the entire services an in-house HR team where needed.”
Here are five ways PEOs can help set up organizations for success in 2023:
1. Improve performance.
According to the National Association of Professional Employer Organizations (NAPEO), businesses using a PEO grow 7-9% faster, are 16% more likely to report an increase in profitability, and are 50% less likely to fail those without a PEO. In addition, a PEO can save $1,775 per year per employee and yields an ROI of 27%. Why? Outsourcing non-core functions – such as human resources – allows the organization to focus on its core business, bringing in more revenue for a growing business. In addition, a company that partners with a PEO can take advantage of its bargaining power, leading to a lower cost of HR services per employee and substantial cost-savings.
2. Offer better benefits.
One of the primary advantages of using a PEO is the enhanced quality and selection of benefits the organization can offer to team members. When a company joins a PEO, employees are included in a larger benefit pool, allowing the organization to offer premier benefits typically available only to larger companies. A PEO partnership enables the business to offer more competitive and flexible health, dental and vision plan options, 401(k)/retirement plan options, and a full suite of comprehensive benefits, including wellness support. Perks such as discounts on car, homeowner’s, and renter’s insurance, travel discounts and fitness plans are often included as well.
3. Streamline processes.
A PEO provides a simple solution for HR teams that may otherwise be disjointed. Using a PEO allows the business to leverage the same provider for all HR needs, rather than using different vendors for each human resources function. Consolidating HR systems under a single provider means there’s one platform and one set of information, resulting in more efficient processes for HR teams and employees alike. Communication is also more streamlined with a PEO; a single point of contact makes problems easier to solve and responding to issues easier to manage.
4. Stay in compliance.
Workplace policy is a constantly changing world of new legislation, governmental compliance, repealed bills, tax credits, and new initiatives. Staying in compliance with FUTA, SUTA, FICA, and myriad state and local requirements takes time, energy, and expertise, and can take attention away from important company-wide goals. By staying abreast of relevant regulations, a PEO will keep the organization on track with deadlines and ensure it stays compliant. When information about healthcare and other employee data is piecemeal, compliance issues may be missed. By combining an HR technology provider and benefits broker in one system, a PEO allows HR professionals to identify and address potential compliance issues that may arise.
5. Attract and retain top talent.
According to NAPEO research, a PEO can decrease employee turnover by as much as 14%. Partnering with a PEO means team members can take advantage of first-rate employee benefits packages, streamlined HR processes, and state-of-the-art HR systems, regardless of company size. Additionally, a PEO assists with new hire onboarding, benefits orientation, and employee relations, providing a safe, confidential environment for employees to ask questions and share personal information. A PEO can also help build company culture, making team members feel more connected in an increasingly remote and hybrid word. By enriching the experience of current team members and making the company more marketable to new employees, a PEO partnership helps with retention and talent acquisition.
If you would like to learn more about how a PEO can help your business, contact LBMC Employment Partners. A member of NAPEO since June 1999, LBMC Employment Partners is the only Tennessee headquartered PEO that is IRS certified.
LBMC is a top 35 business consulting firm that provides complex, unique advisory and compliance solutions to over 10,000 clients across the nation. The firm’s broad range of services includes tax, audit & assurance, transaction advisory, cyber risk services, litigation & valuation, healthcare consulting, data insights, growth and innovation, staffing and HR outsourcing, technology solutions, financial outsourcing and procurement, and high net wealth planning and management for family offices and individuals. Primary industries include healthcare, technology, manufacturing, private equity, professional services, and not-for-profit. LBMC is a Top 3 Regional Accounting Firm and a national Pacesetter for Growth on Accounting Today’s Top 100 Firms list, as well as a 2022 Forbes Top Tax and Accounting Firm. LBMC is proud to be a national Certified Great Place to Work two years in a row, with more than 750 team members across the U.S. and offices in Nashville, Knoxville, Chattanooga, TN and Charlotte, NC.
About LBMC Employment Partners
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. As a proud partner and authorized reseller of UKG Ready, LBMC Employment Partners helps clients be successful by offering a full suite of automated, scalable tools through this unified Human Capital Management system. LBMC Employment Partners is also the only Tennessee-based PEO to receive the Certified Professional Employment Organization (CPEO) designation in the first round of IRS certifications. For more information visit www.lbmcep.com.