Transform Your Recruiting Function With a PEO

We are in the midst of a war for talent that has revolutionized the way companies recruit, both internally and externally. Particularly in areas like IT, healthcare, and transportation, the shortage of qualified workers makes it difficult for companies to find and hire the right people. While large companies may have plenty of dollars to invest in a fully staffed recruiting team, small to mid-size businesses often resort to slapping a post on a job board or two and hoping for the best.

Unfortunately, that rarely gets the results you want. The good news? Your PEO can help.

Six Ways Your PEO Can Strengthen Your Recruiting Efforts

Outsourcing your recruiting function is a common way to increase the quality of new hires and reach more candidates in less time. Let’s look at five ways a PEO can help you build a stronger recruiting function for your business:

  • Cut Costs—By removing the burden of recruiting from your shoulders, a PEO can save you the cost of maintaining an internal recruiting team. They can also make your recruiting process more efficient and decrease your time to fill each open position, saving you money both in direct recruiting costs and in lost productivity.
  • Extend Networking Reach—According to some estimates, up to 80% of new hires are discovered through networking, not job boards. That means the best candidates may never even know about your opening unless you have the right connections. A PEO has a much broader network than most individual businesses will, and they can leverage that reach to find top quality candidates for your open positions.
  • Handle Salary Negotiations—The salary negotiation process sets the tone for employee expectations down the road and for the employee’s satisfaction with his or her job. The PEO works closely with your payroll, benefits, budget, and position requirements, and their firsthand knowledge of your organization gives them the insight needed to work through salary discussions with potential new hires.
  • Ensure Compliance—Diversity recruiting, salary and benefits offerings, interview processes, background checks, onboarding procedures, and scheduling all carry compliance ramifications that must be strictly adhered to. Your PEO carefully researches the compliance requirements in your location and will ensure that all recruiting and hiring activities meet state and federal guidelines.
  • Facilitate Onboarding—The onboarding process prepares the employee for how your business works and communicates your expectations, mission, values, and culture. It also helps the employee understand his or her role and ramps up productivity faster when handled efficiently. Your PEO will work closely with new hires as they navigate the onboarding process, from filling out paperwork to completing necessary training to accessing handbooks and procedures.
  • Improve Candidate Experience—A positive candidate experience boosts your employer brand, while negative experiences can affect employee satisfaction and retention. By outsourcing your recruiting function to a PEO, you can keep administrative tasks streamlined so that candidates aren’t left waiting for long periods of time while you complete the next step in the process.

Do You Need a PEO or Just a Recruiter?

A PEO may not be the right recruiting solution for all businesses, particularly if you want to keep payroll and other administrative tasks in-house. However, for businesses that want to outsource their HR function in its entirety, a PEO offers long-term recruiting benefits that a staffing agency can’t. For example, the PEO provides continuity during the recruiting, hiring, and onboarding process and continues to offer employee support over the employee’s tenure with your organization. Regular interaction with the PEO provides stability and gives employees an opportunity to complete training, get answers to questions, and resolve conflicts efficiently, which can improve retention over time.


Are you ready to partner with a PEO? Our PEO selection tool helps you compare vendors based on your requirements.