7 Ways a PEO Can Banish HR Stress for Your Small Business in 2021

Banish HR Stress in 2017Feeling stressed about HR responsibilities for your small business as we head into 2017? If your New Year’s resolution is “find a better HR solution,” you’re not alone. More than 150,000 small businesses found help with a PEO in 2015 (much higher today), managing between 2.7 and 3.4 million worksite employees. They utilized services ranging from regulatory compliance to retirement planning to PTO tracking. Even better, small businesses that used a PEO over four consecutive quarters were 50% less likely to close their doors.

That all sounds great—but what specifically can a PEO do to keep your business running smoothly?

Let’s take a look at seven ways HR outsourcing can help you banish stress from your office and create a Zen-like workflow:


Whether you’re hiring entry-level employees or executives who can your take your business to the next level, a PEO can bolster your recruiting efforts to help you find the right people for the job. When you outsource your recruiting function, you receive support at every stage of the hiring process:

  • Job postings
  • Applicant tracking
  • Screening
  • Hiring tests
  • Candidate short-listing
  • Background checks
  • Interview strategy
  • Onboarding


Compliance errors can cost your organization thousands of dollars in fines and legal fees. Your PEO will keep a close eye on ACA requirements, full-time employee equivalence, FLSA overtime rule developments, and the numerous other compliance issues that affect your business.


As every small business owner knows, it’s the daily administrative grind that often keeps you from doing what you love. Outsourcing your administrative tasks to a PEO frees you up to focus on the core activities and growth needs of your business rather than spinning your wheels on paperwork.

Employee Engagement

Today’s employees are consummate job-hoppers, dipping their toes in a number of different work environments before they find one they like. Employee engagement strategies help you keep employees on board, reduce turnover rates, and improve productivity. A PEO can help you reach those goals with performance reviews, personnel consultations, employee surveys, personality testing, turnover analysis and reporting, and exit interviews.


If your HR software leaves something to be desired, shifting the burden of payroll, employee benefits, and reporting to your PEO’s HR technology platform can cut down on hours of work and frustration. With a state-of-the-art HRIS, you can enter data once and let your PEO handle reports, filing, legal obligations, benefits information, and any other HR tasks needed to keep your business running.

Diversity Efforts

Diverse organizations not only attract a broader range of quality candidates, but also perform better in terms of profitability and teamwork. A PEO can help you meet diversity goals by incorporating merit-based hiring methodology, instituting diversity training programs, writing diversity protocols, and dealing with behavioral breaches that may occur.


Recruiting quality employees depends heavily on establishing a strong employer brand and positive culture. Achieving that goal begins with crafting an enjoyable candidate experience, continues through onboarding and training, and ultimately must be sustained throughout an employee’s day-to-day work structure. A PEO can help with every stage of this process, from designing a positive recruiting experience, to developing targeted training modules and employee handbooks, to assisting with employee grievance procedures.

PEOs bring the knowledge of experience to your organization, as well as cost savings, industry expertise, and regulatory awareness. They help you handle all the complexities of running your business—without the headaches.

As you head into the New Year, what are your top concerns about running your small business HR department? Let us help you find a PEO to meet those challenges head on in the coming year.


About the Author: Susan McClure is our resident content marketer at PEOCompare.com. She writes about HR outsourcing, HRIS, and general employment issues. When she isn't writing, you might find her browsing shelves at the library, exploring a local hiking trail, or digging in the garden with her family and fur kids.