Every startup or small business owner knows that every rupee counts when it comes to running a business successfully. As your business is growing, the demand for HR increases significantly. It is at this point that would be helpful for your organisation to get assistance from a firm that is an expert in people management. You need professionals who are capable of handling some of the most challenging aspects of keeping your business going. Companies that need to outsource some of their heaviest workload hire a professional employer organization (PEO).



Given below are a few advantages of using a PEO for your business.


  • Save time Significantly.

One of the biggest advantages is the ability to delegate non-revenue generating activities to a trusted third party. The PEO can handle important but time-consuming tasks such as administering benefit plans, creating a compliant payroll system, taxation report & filing, and various other administrative tasks. This allows you to save a significant amount of time so that you and your staff can focus on more important work tasks such as Revenue, Growth &Productivity. By using a PEO, you can save a lot of time and concentrate on core competencies.


  • Provide comprehensive Employee Benefits.

As a co-employer, the PEO can offer a wide variety of Perks and benefits to the employees such as:

  • Various insurances – Health, Life and Family group insurance.
  • Perks like – Laptop, Mobile, Phone connection,
  • Food Vouchers & Shopping coupons.
  • Work from Home Option
  • Extended Maternity / Paternity Leaves
  • Employee Stock options
  • Certification & Training Programs
  • Joining Bonuses

PEO will handle the related administrative tasks, such as negotiating with the prospects, providing offer letter, enrolling employees, and on-boarding the candidates. etc.


  • Manage the Payroll & Taxes

Working with a PEO can reduce your payroll-processing & related accounting costs. PEOs also conveniently automate the payroll process & handle your taxes. Look for a PEO that provides Employee Self Service as part of their package. Some PEOs offer payroll processing services, which can help eliminate manual administrative processes that can prevent HR professionals from being more productive. Option for Payroll Processing only Means you must prepare the time sheet and payroll to send to the PEO for processing.


  • Reduce Operational Costs

PEOs are established organisations that operate with best practices and use the latest technology. You can often save money as well as time by using a PEO instead of paying in-house staff to handle your human resources functions. Working with a PEO can decrease the cost to process your payroll & Various other accounting costs. One of the best PEO benefits is when a company that can provide automated services that quickly and accurately handle payroll calculations & distributions.

You can also avoid the costs associated with setting up an entity, which can sometimes be considerably expensive.


  • Access to HR Services

PEO representatives can advise on important laws and best practices regarding several matters that are important to your business. They also can help get access to various HR Services such as:

  • Benefits administration.
  • Payroll administration.
  • Minimum wage laws
  • Overtime rules
  • Sick leave
  • Maternity & paternity leave
  • Other types of administrative leave
  • Workers’ compensation and unemployment insurance
  • Company Insurance
  • Family and Medical Leave Act administration


  • Compliance Assistance & Assurance

Another significant advantage of using a PEO is having knowledgeable local & regional experts on your team. Employment laws in India can often change, and it is important that you understand those changes. PEOs are familiar with local rules, laws and regulations and can ensure that the proper policies are put in place to protect your business. This will help you stay compliant and protect you from the possibility of facing penalties or fines.

A PEO will work closely with you to notify you of regulatory updates and help you make changes when necessary. Additionally, if there is a crisis or new legislation, local HR support can help you adhere to new local government guidelines. PEOs also employ best practices based on their knowledge of the local customs, industry, and market, so your employment agreements will provide you with greater protection than if you were trying to craft an agreement without any background on this aspect of your business.


  • Improving the employee experience & keep them Engaged.

PEOs add value to your business by providing a great employee experience. Since a PEO handles much of the work of human resources, it allows you to focus on your company’s work culture & employee management.

Thru the PEO, your employees can have the following:

  • Higher levels of engagement
  • Higher retention rate
  • Improved trust in their employer
  • More confidence in the business’s approach to company growth

Working with a PEO has a lot of benefits and can help relieve your company of many of the employment-related responsibilities and risks that come with running a business and hiring employees. Using a PEO is a way to outsource the tasks you do not have the time or expertise to handle. Consider using PEO services not just to reclaim hours and dollars but to have a professional manage the activities, so that you can tackle the problems your business is meant to solve.