Beyond PEO Shenanigans:  5 Ways to Reinvest Your PEO-Exit Savings

March 14, 2024 | Denise Gelfand

Professional Employer Organizations (PEOs) have been a popular choice for small and medium-sized businesses to outsource HR functions and offer employee benefits. However, despite the PEO making sense early on, businesses often reach a point where exiting creates significant cost-savings. This article explores five strategic ways in which businesses can reinvest PEO-exit savings back into operations to drive growth and improvement.

Invest in Research & Development (R&D)

The core of any innovative company is its ability to consistently develop new products or services. Reinvesting PEO-exit savings into R&D initiatives can lead to breakthroughs that enhance your company’s value proposition, competitive advantage, and long-term growth. This strategic allocation enables you to expand your R&D capabilities by hiring additional specialized staff, purchasing cutting-edge equipment, or conducting market research to identify emerging trends and customer needs.

Upgrade Systems and Technology

In today’s digital age, having up-to-date systems and technology is crucial for business efficiency, productivity, and adaptability to market changes. PEO-exit savings can be utilized to upgrade software, implement new digital tools, or develop custom applications tailored to unique needs. Maybe invest in a new customer relationship management (CRM) system to streamline sales processes, adopt a cloud-based accounting software for better financial management, or integrate automation solutions to streamline repetitive tasks and boost productivity.

Foster Employee Training and Development

Allocating PEO-exit savings to employee training and development programs enhances skills, boosts morale, and increases productivity of a company’s most valuable asset – its people.  Employers who invest in ongoing learning and development consistently see higher employee retention and satisfaction, demonstrating a commitment to employee growth and professional development. These trainings can cover technical skills, leadership development, and industry-specific knowledge through workshops, seminars, and online courses.

Prioritize Employee Well-being

Happy and engaged employees are more productive and loyal, which directly contributes to a company’s success. Businesses can leverage the PEO-exit savings to invest in employee well-being initiatives such as wellness programs, mental health resources, or even flexible work arrangements. For instance, allocating funds to enhance their employee benefits package, offer professional development opportunities, or provide subsidies for gym memberships or childcare can go a long way to promoting employee satisfaction and overall well-being.

Enhance Marketing and Branding Efforts

Effective marketing and branding are essential for attracting new customers and retaining existing ones. Businesses can reinvest PEO-exit savings in marketing campaigns, social media initiatives, brand development, or website enhancements. Allocating funds towards hiring a marketing agency for a comprehensive rebranding strategy, launching targeted advertising campaigns, or developing engaging content for social media platforms are other valuable options. These investments lay the foundation for long-term success and growth.

In conclusion, stepping away from a Professional Employer Organization (PEO) can unlock substantial savings, providing businesses with the means to strategically reinvest for growth and enhanced operations. By directing PEO-exit savings into research & development, system upgrades, employee training, well-being initiatives, and marketing endeavors, companies position themselves for sustained success and longevity.

Written by Denise Gelfand & Haley Haldeman

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