How a PEO Can Benefit Your Business

5 minute read

written by Cápita Works

Jun 17, 2022

PEO stands for professional employer organization. Essentially, it’s a partnership where an employer leases employees to a business. A PEO can be beneficial in many ways. Let’s examine the pros of working with a PEO.

What is a PEO company?

PEOs are companies that find and place businesses’ employees. These employees are referred to as “members,” and they are responsible for the same things as employees of full-time companies: covering payroll, insurance, benefits, and taxes.

In a PEO, the company acts as the “headhunter” for members. This means that the company hires the employees and handles aspects like payroll, benefits, and taxes, eliminating as well the tax and legal liabilities of direct hiring. PEOs that are nearshore can even save you more on employees.

How Does a PEO Work?

At Cápita Works, you get a personalized recruitment process to insource a PEO virtual assistant that works directly for your company. Virtual assistants from México that work for our US clients get access to all their mandatory benefits plus many additional ones like private health and life insurance, live and on-demand training, social events, and wellness programs, among other perks.   

Helping relieve HR functions that may be a burden for small businesses while still getting access to monthly learning activities, including training and webinars, as well as the benefits mentioned before.

It’s different from outsourcing to avoid the “vanishing VA” effect that’s very common in markets like the Philippines, India, or Ukraine. When insourcing, you have complete control over a highly-accountable full-time employee working only for your company.

Can a PEO Help You Run Your Business More Efficiently?

Many companies have the goal of growing their business, but they find themselves struggling to make the transition from traditional to online business. PEO companies can be an excellent option for these businesses.

 Through a nearshore PEO, you can hire VAs in your same time zone, tap into global talent without the high expenses associated with hiring in the United States, and save up to 70% on salaries compared to the US market without sacrificing talent. Unlike offshoring to countries like the Philippines or India, where VAs work in the opposite time zone resulting in delayed responses and can be unfamiliar with US culture. 

When working with freelancers, there’s also an added risk that the VA may be working with more than one client without your knowledge - leaving you with a lack of attention. A lack of “legal” benefits or security may also lead to high turnover. At Cápita Works, our VAs work exclusively for your company, and we provide full benefits for VAs while you can avoid the hassles and liabilities of hiring directly.

A PEO can offer you the structure and support you need to run your business efficiently. Having access to a team of remote employees can ease some of the pressure of running your company. While it can help you take some of the strain off, it doesn’t solve the problem of running an independent business. By partnering with a PEO, you can ease some of the stress of running a remote business while retaining control of the situation.

PEOs: Bottom Line  

Many different business structures can help you run your business more efficiently. But what about those times when you need to grow your business but don’t have the time to ramp up your IT systems and processes? A professional employer organization can be an excellent option for these situations. Cápita Works is a PEO that will allow you to grow your business by hiring professionals for a fraction of the cost. If you wish to learn more about the process of hiring a VA, you can contact us.


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