As the ramifications of the COVID-19 Pandemic swept through the USA in 2020 and 2021, small businesses who have partnered with a Professional Employer Organization (PEO) have shown a higher survivability rate than those who have not.
Many businesses are finding it more challenging to attract workers and the competition for quality employees is increasing. By partnering with a PEO small business can economically offer prospective workers a full suite of employee benefits that make their company a more attractive employment options for the prospective employee. PEOs provide payroll services, employee benefits, workers’ compensation insurance, regulatory compliance assistance, and other HR services to more than 173,000 small and mid-size businesses employing over 4 million people.
For small businesses dealing with the myriad of changing employment laws and rules, companies who have been partnered with a PEO have had expert guidance on every aspect of pandemic related rules and regulations. These advantages have shown the value of a PEO and recent surveys and statistics assembled by the National Association of Professional Employer Organizations has proven this value. NAPEO President & CEO Pat Cleary stated that “PEOs were the unsung heroes of the pandemic as they proved to be lifesavers for so many of their small business clients. Small businesses across the country recognize the true value of partnering with a PEO and more and more are deciding to partner with a PEO.” According to NAPEO, since the pandemic began, compared to other small businesses, PEO clients were 58% less likely to have permanently closed, are 82% more likely to have business operations back to normal or better, and have a rate of employment growth that is 81% higher.