Professional Employer Organizations are Answering the Call

Professional Employer Organization’s (PEOs) are growing at a rapid rate and why? As business owners look to offset administrative tasks and offer benefits, PEOs are answering the call. 

Currently, PEOs employ 3.7 million worksite employees in the US alone and have annual wages around $176 billion. 

These numbers are only expected to increase in 2020, offering businesses better benefits options and more HR resources.  PEO’s are underrepresented in Canada…but what is to be expected in 2020? Rapid growth in the Canadian marketplace. Why is that occurring?  Complex employment law and economies of scale. Outsourcing human resource services that help reduce employer risks by ensuring compliance following our American counterparts. 

PEO Pricing

PEOs offer two main forms of pricing: They either charge a per-employee fee or a percentage of your total payroll.

There are advantages to both types of pricing, and whether a PEO that charges you per employee or as a percentage of your payroll is right for you depends on your business, how many employees you have and the overall structure of the PEO plan.

During the initial phase AES will ask questions and iron out the details of service and how they relate to your business to find the plan best suited for your future.

How Do PEOs Work?

PEOs operate under a co-employment model, where your employees will appear on our books for legal and tax purposes. This allows AES to act as a massive corporation with hundreds or thousands of employees. The co-employment model means we can negotiate contracts with employee benefits providers for more favorable rates.  We can bundle HR services and it also means we have the power and scope to build and leverage powerful time and attendance and payroll technology.

Once you sign on with AES as a PEO, you’ll work closely with a customer success manager and other team members to build out the services you need for your business. 

As your business grows, your AES manager will adjust to your needs and work with you. Working with a PEO under the co-employment model is essentially partnering with a team of specialists to build out the administrative and back-end processes of your organization. If it makes sense for your business financially, AES can take a lot of the stress (and handle most of the legwork) out of running your business so you can focus on more important needs.

More than 150,000 small businesses partner with PEOs across the US to get high-quality benefits and proper HR support to keep their businesses running smoothly. There are more than 800 PEO services companies serving and operating in all 50 states and yet only a handful in Canada. In the US, PEO must adhere to both state and federal regulations, and in Canada there are Federal and Provincial laws to ensure are followed.  

As you search for a PEO, keep region in mind.  If you are doing business in Canada be conscious of finding a qualified company to serve your business and know the Canadian payroll laws and regulations. 

Our Methodology

Partnering with a Professional Employer Organization is the most effective way for small and mid-sized companies to outsource employer services such as payroll services, benefit plan administration and workers’ compensation so you can continue to attract and retain top employees.  This is what AES does best for you.

Employee Retention Programs

In today’s tight talent market retaining great talent is paramount.  We can provide the tools necessary for a good retention plan such as: health benefits, personalized benefits, company culture events and recognition programs. 

Our job is to deliver comprehensive support effectively and cost-efficiently. Our model, in conjunction with our professional team, enables our clients to optimize their company’s operational excellence and ensures their leadership team focuses on vision and opportunities.

Call AES today and set up a time to speak about PEO’s and why this division is growing at such a rapid rate.   1-855-568-7900