Next step peo
Why Startups Should Use a PEO
Challenges of Startups
A startup business, while charged with strength, new ideas, motivation, and excitement, can still fall short of its goals given the challenges of an ultra-competitive business environment. Experts agree one of the primary struggles startups face is attracting top talent.
On the one hand, startups can encounter difficulty hiring people with the skills required to add value to their company and, on the other hand, it can be difficult to find employees that share the founder’s passion.
Another critical consideration is time and financial investment in finding the right people for your organization, which will inevitably take away from other areas of the business. Once you do the math, hiring a new—salaried—employee can amount anywhere from 6 to 9 months’ salary. For an employee making, say, $60,000 annually, that comes out to $30,000 to $45,000 in recruiting and education costs alone. This time spent on recruitment is time the organization is losing not productive on the other essential operations. All costs considered, hiring can be a financially arduous and time-consuming process.
For startups looking t
PEO Transition: A Checklist & Timeline for Your Exit Strategy
When your company partners with a professional employer organization (PEO), it can enjoy many benefits, such as payroll management, human resources support, and compliance assistance. However, there may come a time when your business outgrows the need for a PEO, or you want to manage these functions in-house.
Transitioning away from PEO services is a complex process, but with careful planning, it doesn’t have to be overwhelming.
Here’s what you need to know about planning for a seamless PEO transition, with a handy checklist and timeline to ensure a smooth exit strategy. We’ll also discuss how Mosey can assist with corporate compliance.
What Is a PEO and What Does It Do?
A professional employer organization is a company that partners with small to medium-sized businesses for human resource management.
A PEO can handle payroll, benefits, workers’ compensation, and some compliance with employment laws. When you work with a PEO, your business enters into a co-employment agreement, where the PEO takes on certain employer responsibilities for your workers.
Put simply, a PEO handles many of the HR tasks that you wo
Why You Might Be Ready to Leave Your PEO
If you’re a business leader questioning whether your Professional Employer Organization (PEO) is still the right fit, you’re not alone. Many growing companies eventually reach a point where leaving your PEO becomes a strategic step forward, one that allows for greater flexibility, cost transparency, and tailored HR support.
At EmphasisHR, we’ve worked with countless businesses making this transition. In this blog, we’ll explore the limitations of PEOs, the benefits of customized HR outsourcing, and why now might be the right time to evaluate your next move.
Understanding the Limitations of PEOs
PEOs can be a powerful solution, especially for startups and smaller organizations looking for bundled HR, benefits, and compliance support. However, as your business matures, the cracks often begin to show. Some of the most common limitations include:
- Lack of customization: PEOs offer a one-size-fits-all package that may not evolve with your business.
- Shared control: With a PEO, you enter a co-employment arrangement, blurring lines of authority.
- Unclear pricing: Many businesses are surprised by hidden fees buried in the
PEO insurance explained: A guide for employers
Juggling limited in-house resources and budgets can make it difficult for small to medium-sized businesses to navigate the employee healthcare landscape.
The stress of meeting financial goals and employee expectations has never been greater. As premiums continue to climb, 93% of small business owners worry about the sustainability of employee benefits.
This article explores how innovative solutions, like PEO insurance and ICHRAs, can help companies overcome these challenges by offering flexible, affordable health coverage while simplifying the administrative burden.
What is PEO insurance?
PEO insurance is health insurance provided through a Professional Employer Organization (PEO). Unlike traditional insurance plans, PEO health insurance is part of a co-employment agreement where the PEO shares HR responsibilities with a business.
PEOs pool employees from multiple companies into one plan, allowing them to negotiate better rates and offer additional benefits. This structure helps smaller businesses provide robust insurance options that would otherwise be inaccessible due to high costs or limited resources.
According to NAPEO,
Why Partnering with a PEO is a Smart Move for Businesses in 2025
As we step into 2025, businesses face an increasingly challenging environment of regulations, workforce dynamics, and economic challenges. Navigating these complexities can be overwhelming, especially for small and medium-sized businesses with limited resources. This is where partnering with a Professional Employer Organization (PEO) can make all the difference.
Here are some reasons why working with a PEO is a strategic move for businesses in 2025.
Simplifying Compliance
Employment laws are constantly evolving, with updates to wage regulations, tax codes, and workplace safety standards happening frequently. In 2025, these changes are expected to become even more intricate, especially for companies managing remote or multi-state workforces.
A PEO helps you stay compliant by:
- Keeping you informed about regulatory changes.
With a PEO, you can focus on running your business without worrying about fines or legal complications.
Access to Comprehensive Employee Benefits
Attracting and retaining top talent is a top priority for businesses, but offering competitive benefits can be costly and complicated. PE