5 Common Myths About Working with a PEO


Check out these 5 common myths about PEOs and the number of great benefits such as removal of the transactional burden of HR, increased productivity, improved employee engagement, business growth, significant cost savings, and more.

Myth #1: Business Owners Lose Control of their Business

This is one of the most common misconceptions among business owners. However, when you work with a PEO, you retain all of that control. Co-employment does not change that. Instead, businesses gain a strategic partner who shares various HR responsibilities to ensure improved practices, strategies, and efficiency.

The employer remains responsible for maintaining the worker’s job duties and the normal operational day-to-day business functions as it always had. Typically, the PEO provides human resource consulting, safety and risk mitigation services, payroll processing, employer payroll tax filing, workers’ compensation insurance, health benefits, regulatory compliance assistance, workforce management technology, and training and development.

Myth #2: Employers Will No Longer Need their HR Manager or Team

If a business partners with a PEO, their HR personnel do not lose their jobs. Partnering with a PEO can assist and support internal HR employees allowing your current staff more time to focus on more strategic initiatives, versus tedious administrative tasks.

Myth #3: Employers Lose the Power to Decide Who Gets Hired and Fired

Though a PEO can help business owners find potential new hires, when it comes to who gets hired and who gets fired, the decision rests solely with the owner/company. In a PEO partnership, all talent management responsibilities stay with the owner.

Myth #4: Employees Will Dislike Co-Employment

Yes, co-employment will be a change. But, employees disliking the organization they work for simply because their company entered into a PEO relationship is virtually unheard of. 

Rather, a PEO can actually boost the employee experience by enhancing the culture of an organization. In turn, creating a more engaged and productive workplace.

Myth #5: Switching to a PEO is too Complicated

Many believe transitioning to a PEO partnership is a cumbersome process. However, most PEOs have teams to help ease their new client’s transition into the PEO relationship.

Once the new partnership begins, the PEO communicates regularly with the new client regarding all operations and is always available to answer questions and concerns. 

To learn more about how a PEO can help your business, contact us.


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