Top 3 Reasons Why A PEO Should Handle Your Employee Benefits

A Professional Employer Organization (PEO) partners with small to medium-sized businesses to handle its HR needs from payroll to risk...

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A Professional Employer Organization (PEO) partners with small to medium-sized businesses to handle its HR needs from payroll to risk management to employee benefits administration. Businesses benefit because they do not have to hire in-house HR staff but still gain all the benefits and protections that large businesses enjoy with an in-house HR team.

With incredibly low unemployment in Hawaii, it’s more important than ever to reduce employee turnover. Companies who partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business.

Top 3 reasons why a PEO should handle your employee benefits

According to an article on, medical and dental plans and 401k plans are the top two employee benefits that attract the best employees. Small businesses often have a hard time competing with the employee benefits that large companies can afford to offer but that’s where a PEO comes in. Here are the top three reasons a PEO should be handling your employee benefits:

1. A PEO increases affordable employee benefits options

PEOs have a pool of clients, which gives them the buying power to purchase a wider range of employee benefits plans at affordable rates. The PEO handles the negotiations with the insurance companies and typically offers a few options for medical and dental coverage as well as ancillary insurance options such as vision and life insurance.

2. A PEO offers 401(k) plans

Many small businesses don’t offer 401(k) plans but they should be in order to attract the top talent. A PEO can offer affordable 401(k) options for small businesses and most importantly, they take the burden of administration off of the business owner.

3. A PEO handles benefits administration

Let’s be honest, administering benefits is a lot of work and most small business owners don’t have the time or expertise to handle it. When a business partners with a PEO, the PEO handles benefits administration, from answering employee questions to ensuring that your regulatory reporting is up to date.

Look for a PEO that offers plans suited to the size and needs of your business. You may be surprised at how affordable the services are and how much they can help you run your business smoothly and successfully. PEOs are great at HR and you’re great at growing your business; everyone benefits when each party can focus on their strengths.

Partnering with Makai HR

Need help with employee benefits? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from 401(k) plans to payroll, taxes, health insurance/benefits, and worker’s compensation. You also gain peace of mind that you are in compliance with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long). When choosing a PEO to partner with, there are many things to consider including cost, services and technology solutions.

With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet or phone. We can truly improve your employees work benefits while freeing you up to run your business.

What are you waiting for? Contact us today to get started!

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