5 Reasons Why PEO In Germany Makes Sense For Small Business Owners


As small business owners who is new in the industry and trying to make its mark of his company, it takes a lot of hard work to keep your business running. But running a business successfully is not only about investing time and energy in your business but it is also important to make sure that all your time is being invested in the growth aspects of your company. In this spirit, having a PEO in Germany for your small business can help you in ensuring the continuous growth of your company. Here is a list of 4 reasons why you should go for a PEO Company in Germany:
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Reason 1  - To Save Time

By delegating your company’s HR responsibilities to the PEO,  you can save a lot of time which can help divert your focus to some of the critical tasks of your business such as strategy, marketing, and talent acquisition. It is a common myth that HR responsibilities do not consume much time but free yourself from them and you can easily be able to save 10 hours a week for better activities.
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Reason 2 - Save Money

This is absolutely true. Another myth regarding PEO is that they are expensive services and would put a lot of financial burden on the company. However, various reports show that small businesses would need to spend 35% less on the HR administration costs as compared to the average money spent on HR by non-PEO companies. In addition to this, PEOs can also help in saving a large chunk of money on fines and fees that are associated with missed deadlines or non-compliance.
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Reason 3 - Improve Service Offerings

As a small business, you can not do everything and there would certainly be a level of limitation in terms of what all can be done on your own. PEOs are capable of offering deeper services than most small businesses would be able to handle on their own. For example, a lot of PEOs offer assistance in terms of performance reviews, compensation planning, recruiting, workforce metrics and analysis, employee training, and even personality testing. This helps in an overall improved decision making. In other words, it is a win-win situation as you will be taking advantage of additional services in less money you would otherwise be spending.
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Reason 4 - Lower Turnover Rates

With improved and additional HR services you will be getting from a PEO, the turnout rate would be low. Studies have shown that the small businesses that work with a PEO consistently experience between 10% and 14% lower turnover rates as compared to when they were working on their own.
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Reason 5 - Support Growth

So it all adds up to one thing. PEO supports long term growth. Right from freeing up time for you to saving money to additional services to lower turnover rates, all these factors would help in the growth of the company. Studies have shown that  companies with PEO are more likely to grow at a faster pace than the ones handling the HR services on their own.
Location: Germany

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