Why PEOs are Advantageous for Small Businesses

J

Justworks, Inc.

12 min read · Jun 17, 2026

Why PEOs are Advantageous for Small Businesses

PEOs help your small- or medium-sized business get your team access to big-company benefits at affordable rates, and support for your employment-related compliance needs. Businesses that use a PEO get the best of both worlds: the autonomy and thrill of entrepreneurship, with the cost savings and efficiencies associated with being part of a larger enterprise. When it comes to negotiating rates for benefits like health insurance, retirement plans, workers’ compensation, and even gym memberships, there’s power in numbers. A PEO’s collective bargaining power means your employees get access to better benefits at lower rates.

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