Small businesses are typically driven directly by sales or indirectly by their sales staff. More often than not, such businesses are driven to increase sales because it is the only way for them to increase their profits. And for that they need a capable sales staff.

The Requirement

But with increased sales comes the requirement of new employees. And your HR service costs and other job costs rise steadily. When you need to hire more employees, there are the added costs of employee benefits packages like employee health benefits. And you have to expend time and energy in a lengthy employee assessment process as well. It is a simple thing to remember with increased number of sales you get an increased cost of sales. These costs can take a big chunk out of your profits.

The Solution

The smart choice that a business can make in this situation would be to use a PEO (Professional Employer Organization). PEOs offer an excellent opportunity for these companies to improve their profit by getting more employees without having to go through the tedious processes, through employee leasing.

PEOs act as co-employers with the companies they provide the employees to. They take care of all the processes involving payroll administration and all other recruitment and employee management functions that the organization needs. All these services need to be handled by professionals, which small business owners don’t have. They end up using part-time employees to handle payroll services which can be the cause of big problems for them in the future.

You and your existing employees can benefit from hiring PEOs. Since they technically have thousands of ‘employees’, they can get lower compensation rates from insurance companies. The companies can use PEOs to give their employees all the benefits they need in lowest cost possible.

In addition the PEOs provide the necessary training the new employees require; they set guidelines and conduct evaluations for the employee’s service. They essentially act as a HR management department for your organization.

You can save yourself all the headaches of hiring new employees and managing them. You can use the saved time and energy on efforts to increase your revenues. You can focus on your business goals and build up your business and expand your market. You can leave the rest of the functions of your company in the capable hands of a PEO. Small businesses can benefit a great deal from employee leasing, by spending a small chunk of cash on PEOs you have a well trained workforce ready at your service.

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