Professional Employer Organizations (PEOs) provide human resources services to their small business clients—paying wages and taxes and providing compliance assistance with myriad state and federal laws and regulations. In addition, PEOs provide workers with access to 401(k) plans, health, dental, and life insurance, dependent care, and other benefits not typically provided by small businesses. Between 2 and 3 million people are covered by PEO arrangements.

3 WAYS SMALL BUSINESSES BENEFIT FROM USING A PEO

1 THEY GROW 7 TO 9% FASTER
Since December 2004, employment at small businesses using a PEO has grown more than 7 percent faster than at small businesses overall, according to the Intuit Small Business Employment Index.

2 THEIR EMPLOYEE TURNOVER IS 10 TO 14% LOWER
The average overall employee turnover rate in the United States is approximately 42 percent per year, based on 2012 data. It is 28 to 32 percent for companies that used a PEO for at least four quarters.

3 THEY ARE 50% LESS LIKELY TO GO OUT OF BUSINESS
Businesses that use a PEO are approximately 50 percent less likely to fail (permanently go “out of business”) from one year to the next when compared to similar companies in the population as a whole. The overall business failure rate among private businesses in the United States as a whole is approximately 8 percent per year, based on 2012 data. It is approximately 4 percent per year
for those companies that used a PEO for at least four quarters.

3 WAYS PEOs HELP EMPLOYEES OF SMALL BUSINESSES

1 ACCESS TO FORTUNE 500 EMPLOYEE BENEFITS
Through a PEO, the employees of small businesses gain access to big-business employee benefits such as: health insurance, dental
and vision care, life insurance, retirement saving plans, job counseling, adoption assistance, educational benefits—even pet insurance.

Emplova PEO offers premium coverage from top carriers:

• Exclusive access to Cigna Medical Plans* with TouchCare Health Care Concierge and One Medical Primary Care
• MetLife Dental, Vision, LTD, STD, Life Insurance, Legal Services, and Employee Assistance Program
• Omega FSA, HSA, and Commuter Benefits
• Aflac Hospital Indemnity, Specified Disease, and Accident Plans
• LifeLock Identity Theft Protection
• Pet Benefit Solutions Pet Insurance
• Tickets at Work Employee Perks and Discounts

2 ASSISTANCE FROM HUMAN RESOURCE PROFESSIONALS

Most small companies cannot afford to hire a human resources professional. In contrast, PEOs provide access to human resource professionals as a part of their services to small businesses. Through this service, PEOs help small businesses comply with myriad federal, state, and local employment laws, and help their employees better understand their rights and responsibilities under these requirements.

• Emplova PEO provides an unmatched white-glove boutique service model designed to provide the Financial Services and Technology Industries with the true level of service they want and deserve. We understand  time wasted dealing with HR issues and responsibilities can directly impact the bottom line.
• Emplova clients have access to a Dedicated Client Success Manager from Day 1, including cell phone access. Our Client Success Managers are experts in all areas of HR and will proactively manage HR compliance and quickly resolve any HR issues. They are immediately available to provide support whenever you need them.
• Emplova clients enjoy the benefits of our Premier Health Care Concierge Service as the frontline for all employee benefits issues and inquiries. They handle all benefits related questions, claims advocacy and issue resolution, and are a resource to help be a better benefits consumer. They are available for unlimited consults via phone, email, web or app.

3 INCREASED PARTICIPATION IN RETIREMENT SAVINGS PLANS

Among businesses with fewer than 10 employees, those using a PEO have more than 3 times greater participation in a retirement plan than employees of businesses that do not use a PEO. For businesses with 10 to 49 employees, 52 percent of PEO client business employees have a retirement plan, versus 23 percent in those companies that do not use a PEO.

Emplova provides access to carefully selected Slavic 401(k) Plans.

• Quality Investment Choices: Highly rated funds that provide a broad spectrum of diversified investments and management styles giving you access to funds that achieve a wide variety of retirement goals.
• Personalized Service: Registered representatives are available for investment advice and to process plan requests.
• Ease of Access: The Slavic401k Retirement Savings Plan offers a full-featured, mobile responsive web site that allows users to access and make changes to their accounts with ease (daily valuation, performance and prospectuses are online).
• Optional Pre-allocated portfolios: To help make investing easy.
• Email Express: Upon request, a unique email service is available. Every Friday afternoon employees can receive
  an email with their 401(k) account balance and a brief commentary on that week’s market activity.
• Specialized Reporting: Quarterly statements are mailed to the employees home

Emplova is a unique Professional Employer Organization (PEO) that helps small to medium sized businesses grow and prosper by providing benefits, payroll, technology, compliance, and HR administration. To learn how we can create a winning HR strategy for your business contact us today.

Information in the is article is general in nature and not intended to replace legal advice in any particular matter.

*Cigna does not offer stand alone medical plans in the small group market and is only available through Emplova.

Source: Napeo White Papers