Starting a company is not easy. It is a daunting process that requires an incredible investment of time, effort and capital. It is during this time that startup founders must leverage their relationships and sources of guidance to improve their chances of survival. A common surprise that startup founders fail to anticipate is just how much goes into HR. Whether it’s the increased levels of liability or the ever-growing number of employer regulations, accurately handling HR is a mammoth task that is almost always overlooked.

However, all is not lost. By visiting the Simploy learning center, you are on the right track. Within our learning center we have a plethora of articles aimed at guiding business owners so they feel comfortable making educated decisions.

Within this piece will we discuss several of the key benefits that a PEO will provide to a newly formed company. This will include the key benefits that PEOs provide to each and every client, as well as the unique benefits that a PEO can provide to a startup.

  PEO Benefits

Time & Opportunity Cost

Establishing a relationship with a PEO immediately frees up valuable time on your calendar. By outsourcing incredibly time-intensive activities to the experts, you can focus on performing the other tasks required of a business owner. The value of this should not be overlooked. If you pay yourself $60,000 p.a., every hour you spend performing a HR-related task, costs you almost $29!

When partnered with a PEO, you can expect the following to be entirely managed by the PEO:

  1. Workers’ Compensation, Safety & OSHA Management
  2. Government Compliance
  3. Recruiting, Hiring, Retention and Dismissal
  4. Training & Development
  5. Payroll (including PTO management, garnishments, withholdings, deductions, etc.)

As a startup founder, you know that time management is key to productivity and efficiency. With a small team of employees, you do not have the manpower to reap the benefits of specialization and instead are forced to each operate within varied roles. As mentioned earlier, a PEO will rid you of countless hours of non-revenue generating tasks, allowing your team to focus while you outsource the headaches.


Cost Savings/Economies of Scale

By partnering with a PEO and utilizing co-employment, a business owner can benefit from economies of scale that would have previously been unattainable. These economies of scale see cost savings in the areas of Workers’ Compensation & Benefits (401(k), Group Medical, Life, Discount Purchasing, Dental, Vision, etc.

For a startup, the economies of scale offered through co-employment are incredibly beneficial. Almost all companies begin as small entities which lack the purchasing power of established businesses. The economies of scale that a PEO will bring to you would otherwise be completely unattainable.


Hiring & Retention

As a PEO client, your ability to attract and retain talent will drastically increase due to three key reasons:

  • The quality of HR assistance provided to your employees improves. Simploy’s staff are true experts within their field and make a point to get to know your employees on a deep level. This results in your employees feeling valued which reduces their likelihood of leaving.
  • The aforementioned economies of scale allow you to offer competitive benefits packages. In the modern economy, benefits are highly important to those on the job market and offering a benefit package that exceeds your rival’s will attract quality talent to your company.
  • PEOs, like Simploy, pride themselves on their ability to accurately deliver payroll to their clients. Attempting to conduct payroll internally will increase opportunities for mistakes which can see your staff incredibly unhappy.

For startups, partnering with a PEO early in your business’s lifecycle will have long term benefits. By sourcing quality talent and harnessing their abilities during the early growth stages of your company, you can see rapid growth that would have otherwise been impossible. 


To summarize: the aforementioned benefits provide startups with an immediate competitive advantage versus their peers. A PEO, like Simploy, will ensure you are more productive than the competition, have better staff than the competition, and lower costs than the competition.

Those crucial competitive advantages have combined to create the following statistical fact: Companies that partner with a PEO are 50% less likely to go out of business. It’s as simple as that.

Interested in learning more about the PEO concept? – visit our PEO 101 Hub for additional insights.

On the other hand, if you have seen enough and want to get in touch with a member of the Simploy team, submit a contact request and a Simploy associate will reach out to you shortly.