You are up against organizations that have everything you don’t when it comes to hiring. Huge HR departments. Benefits packages for businesses. The capacity to offer health insurance, retirement programs, and other benefits that make your offers look like an afterthought.
So when the right candidate picks the bigger firm, you know exactly why. Your perks can’t compare. You have to watch talented individuals go elsewhere because you’re a 35-person business that can’t compete with what a 5,000-person company can give. Because of this, many qualified candidates leave before the conversation even starts.
Many firms don’t know that they can still offer enterprise-level employee benefits even if they don’t have an enterprise-level budget. OEM America’s PEO employee benefits services enable businesses to have access to competitive benefits, cut down on HR effort, and create workspaces that attract and keep people, especially in today’s tough job market.
Businesses that use PEOs are 56% more likely to offer mental health resources and behavioral health programs than those that don’t, according to NAPEO. That’s because they can get perks that tiny enterprises can’t get on their own.
The PEO industry today has more than 230,000 client enterprises with 4 million employees. That’s about the same number of people who work at Walmart, Amazon, Kroger, and Home Depot. When you negotiate with insurance companies as a business with 40 employees, you’re putting 40 lives on the line. When a PEO negotiates, they bring in millions.
They provide the PEO Fortune 500 prices because it looks like a Fortune 500 corporation in terms of benefits. Then the PEO gives you those prices.
If you don’t have this access, you can only offer the most minimal health insurance you can afford and maybe a simple 401(k) if you’ve gotten around to setting one up. When candidates look at what bigger companies offer, a little bit more money or vague promises about growth potential won’t be enough to make up for the difference.
The data shows that this costs you. Companies that use PEOs grow 7% to 9% faster than those that don’t. They are half as likely to go out of business. They have 12% fewer employees who leave their jobs. These are the results of being able to compete for talent on an equal footing instead of always losing to superior benefit packages.
When we talk about employee benefits at the corporate level, we mean full packages that include all aspects of an employee’s financial security and health.
Enterprise health plans include medical, dental, and vision care with reasonable deductibles, a wide range of providers, and real coverage that employees can utilize without worrying about going bankrupt. When small businesses shop on their own, they usually end up with plans with large deductibles, narrow networks, and premiums that feel like a lot even when they don’t cover much.
Lower deductibles, full coverage, big provider networks, and rates that are 15% to 30% lower than what you’d pay on your own, since the PEO can negotiate better deals.
Most small businesses don’t offer a retirement plan at all, or they just offer a rudimentary 401(k) with little or no company contribution. Enterprise organizations offer 401(k) plans with generous employer matching, a variety of investment alternatives, and professional management that helps employees establish real financial security.
As part of their regular benefits, employees at Enterprise obtain life insurance and short- and long-term disability coverage. These protections really protect employees and their families financially. Small firms that purchase on their own frequently can’t afford to offer these advantages or find the paperwork too hard to handle.
Enterprise organizations have Employee Assistance Programs that give private counseling, help with financial planning, legal help, and resources for dealing with personal difficulties. These programs help employees deal with problems before they become performance issues, which boosts productivity and lowers absenteeism. Most small firms don’t even think about giving EAPs because they think they are too expensive. If you tried to buy these services on your own, they would cost thousands of dollars. But your 25-person team can use them.
Wellness programs, workout subsidies, commuting benefits, flexible spending accounts, extra insurance alternatives, and other incentives that make employees happier are all part of enterprise benefit packages. Make your box feel like it’s for a big company, even though you’re a little firm.
Processing payroll and paying taxes can get complicated very quickly, especially for businesses with workers in more than one state. PEOs take care of payroll, tax filings, and regulatory reporting to cut down on mistakes and fines.
Employment regulations often change at both the state and federal levels. PEOs help firms follow the rules around wages, time off, and reporting. They also help with safety initiatives at work that cut down on claims and liabilities.
Leaders may focus on growth instead of paperwork when they outsource HR administration. A lot of business owners save a lot of time that would have been spent dealing with payroll, regulatory difficulties, and HR vendors.
Having excellent perks does more than make your job offers more appealing. Industry research shows that PEO customers’ yearly median growth is twice that of similar non-PEO companies, and their profits are 16% higher. Part of that expansion comes from being able to hire and keep the people who make a firm successful.
Your job ads offer full benefits, which shows that you’re a genuine organization that cares about its employees. This makes better prospects apply. Your benefits package is competitive with what bigger companies provide, so you lose fewer candidates in the end. Your offer acceptance rate goes up because prospects don’t have to give up job stability to work for a smaller company.
Most companies know about the payroll and benefits parts of PEO services, but many don’t realize the extra help that can improve long-term employee performance.
A PEO can find out what the going rates are for salaries in the market. This keeps organizations appealing to job seekers while keeping compensation structures fair and predictable.
Some PEOs use employee surveys and engagement analysis to find problems at work before they cause people to leave. These ideas help businesses keep their employees and improve their culture.
PEO services generally involve training and mentoring for leaders. These tools assist companies in finding and training future leaders and make their management skills stronger.
Advanced HR solutions provide dashboards that indicate patterns in hiring, how benefits are used, and the cost of the workforce. These tips help businesses make better choices about hiring and spending.
OEM America offers firms complete small business employee benefits packages that are meant to attract and keep the best workers while keeping expenses down.
OEM America helps companies create structured and competitive benefits programs by using its knowledge in managing compensation and benefits.
OEM America helps businesses come up with pay plans that fit with their goals. This entails doing market research, coming up with a salary structure, and comparing pay to make sure it is competitive.
The organization assists companies in designing benefits programs that may include:
These programs are carefully evaluated to ensure they are both competitive and cost-effective.
Businesses may develop organized organizations that enable long-term growth with the help of accurate job descriptions, position classifications, and workforce planning.
Employment rules are always changing, which can make it hard for smaller HR departments to stay compliant. OEM America keeps an eye on changes in the law and helps businesses alter their practices to fit.
With this level of support, businesses can provide professional, enterprise-level HR services without having to keep a huge HR department on staff.
OEM America can assist your company in getting better employees, making HR less complicated, and offering better benefits packages. Companies can make an appointment for a consultation to get expert advice, look at their current HR costs, and look at ways to save up to $1,000 per employee.
Call OEM America at 860-528-5555 or visit their website to learn more or start your HR cost study. OEM America is a member of NAPEO and an accredited business by the BBB. They are dedicated to helping businesses create better, more productive workplaces while providing the perks that employees demand.
PEOs combine workers from thousands of client companies into one big group that insurance companies and benefits providers treat as a Fortune 500 company. The PEO negotiates rates and plan alternatives based on this combined size, which gives them access to and pricing at the enterprise level. Then they give these perks to all of their clients, no matter how big or small they are.
The cost of PEO employee benefits is usually 15 to 30 percent less than what small firms spend for worse coverage on their own. The PEO charges a percentage of payroll (usually between 3% and 12%, depending on the services), but this amount covers all of the benefits, administration, compliance, and HR help that you need.
Yes, for sure. According to NAPEO research, organizations that use PEOs have 12% fewer employees who leave than businesses that don't use PEOs. PEO users are 56% more likely to offer mental health services, which will be very important for hiring in 2026. Companies with PEO benefits develop 7–9% quicker than those without them. This is partially because they can hire the people who help them expand.
Most companies can switch to PEO benefits in four to eight weeks. The timeline depends on how many employees you have and when your present benefits are set to expire. Many PEOs plan transfers to happen at the end of your current benefit plan year to cause the least amount of disturbance. Once the change is complete, employees can immediately get better coverage and more perks.
At first, employees may be puzzled when they see a separate firm name on their benefits documents. But after they grasp the co-employment connection, most employees significantly prefer PEO benefits. They have greater coverage, pay less most of the time, and have access to services like EAPs and wellness programs that are really useful.
Yes, PEOs let you flexibly choose your benefits. While you're looking through the PEO's options, you'll usually see several plan tiers and optional benefits that employees can choose to take part in. You choose which level of medical coverage to offer as your main coverage, how much of the premiums you'll pay, how much your employer will match for retirement plans, and which optional benefits to offer.
If you end your partnership with a PEO, you'll have to set up new benefits on your own or through another provider. Most of the time, employees switch to your new plans at the end of the current benefit year or when their contract ends. If not handled appropriately, this can be disruptive and lead to modifications or gaps in coverage.