4 Reasons to Use a PEO

4 Reasons to Use a PEO
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If your company is considering using a professional employer organization (PEO), there’s a lot to think about. Want to understand what is a PEO? You want to make sure you’re focused on the right choice for your organization to get the most from your experience. Why use a PEO?  Here are four great reasons to consider a PEO for your business. 

1. A PEO Can Mitigate Compliance Risk

One of the biggest concerns a company can face, especially in certain types of industries, is noncompliance with specific rules and regulations. Why would a business use a PEO? When you choose a PEO that understands your industry, you can have confidence that they’ll regulate compliance for you. 

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Not only does that help lower your risk of missing something important, but it can also ensure that your company stays educated and up-to-date on any regulatory changes you need to keep in mind. If your PEO is staying ahead of changes, you won’t need to worry when those changes take effect.

2. A PEO Helps With HR Strategy

Your HR department already has to lot to do, and making that department’s job a little easier can reduce the chances of mistakes and problems. A PEO is a great asset to HR strategy and development and can be a big part of the team. 

Whether you have a small company with a couple of people in HR or a much larger organization employing dozens of people in the HR department, the overarching goal is to blend the PEO and HR as seamlessly as possible, for maximum value and benefit. Curious about how this integration works? Understand co-employment with a PEO.

3. PEOs Can Make Payroll Easier

Payroll is one area where compliance with legalities is extremely valuable. Even if you have fully trained employees, it’s always possible for them to miss a regulation change or experience some other concern. That could affect your company’s taxes and financial future and could also adversely affect employees.

With a PEO, you can have an easier and better experience with payroll. That takes the pressure off of your HR department and lowers the chances that something will be overlooked. Employees will be paid correctly and accurately every time, and calculations for taxes and benefits will be handled the right way.

4. A PEO Provides Support and Peace of Mind

The overall support a PEO can give your company is extremely valuable, especially as that company grows and you focus on the future. With the right PEO, you don’t have to worry about all the little details that could have otherwise potentially derailed your business.

That peace of mind is why it’s so important to choose the right PEO for your needs, so your company is confident in the support it’s receiving. Ready to work with a quality PEO that can meet your requirements and help protect your future? Contact Aspen HR today for the services your company needs.


What else do you need to know about PEOs? Here are a few of the most commonly asked questions.

What percentage of companies use a PEO?

According to the National Association of Professional Employer Organizations (NAPEO), 15.3% of companies with 10 to 99 employees use a PEO. That equals just under three percent of employees in the civilian sector in the United States.

Is a PEO good for employees?

A PEO can be very good for your employees. The NAPEO reports that employee turnover may be reduced by up to 14% when a PEO is used. Additionally, many employees report higher levels of satisfaction.

Is a PEO right for my company?

Only you can decide if a PEO is the right choice for your company. They aren’t always the best option, and it depends on your industry, the size of your company, and other factors. If you have pain points that PEO benefits could address, using one could be the best choice.

The Bottom Line on Choosing a PEO

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If you’re considering all the reasons to use a PEO, make sure you’re looking at what your company actually needs. If you have a larger or growing company, working with a PEO is among the best ways to advance your goals and keep your business strong.  
Aspen HR offers employee benefit services and other applicable options that can keep your company running strong. Reach out to us today, and get the support your business deserves.

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