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Outsourcing HR Helps Companies Scale in the New Year 

As businesses look to grow in 2026, one strategic advantage that is becoming increasingly important is outsourcing human resources (HR) functions. More companies are turning to professional employer organizations (PEOs) to help streamline administrative processes, improve employee satisfaction, and support sustainable growth. By partnering with an expert HR provider like Group Management Services (GMS), business owners can focus on driving their core mission forward while we handle the rest. 

Why HR Outsourcing Is a Growth Engine 

Outsourcing HR through a PEO is more than a convenience. It is a proven business growth engine. Today, more than 200,000 businesses across the United States partner with a PEO for HR related services, including payroll, benefits, compliance, and risk management. 

The numbers speak for themselves: companies that work with a PEO experience significantly better outcomes compared to those that manage HR entirely in-house. According to research from the National Association of Professional Employer Organizations (NAPEO), businesses using PEO services grow twice as fast as those that don’t, have 12% lower employee turnover, and are 50% less likely to go out of business than their non-PEO counterparts.  

In addition to improved survival rates, PEO clients often enjoy: 

  1. More consistent and competitive benefit offerings for employees 
  2. Centralized payroll and compliance support 
  3. Cost savings and increased profitability overall  

This support enables small and midsize companies to compete more effectively and grow confidently. 

How Outsourcing HR Relieves Administrative Burdens 

One of the biggest challenges for business owners is keeping up with the constant administrative workload that comes with HR. Tasks such as payroll processing, benefits management, compliance reporting, and workers’ compensation are essential but time-consuming. They also demand specialized expertise that many businesses struggle to maintain internally. 

When a company partners with a PEO like GMS, these responsibilities are handled by experienced professionals. This allows business leaders to shift their time and energy back to high-value initiatives. HR outsourcing through GMS leads to more accurate payroll, streamlined benefits administration, consistent compliance support, and easier access to answers for employee questions. Instead of juggling paperwork or navigating complex regulations, business owners can focus on growth, innovation, and daily operations with clarity and efficiency. 

Benefits for Employees Too 

Outsourcing HR not only helps leaders. It also provides meaningful benefits to employees. Through a PEO partnership, employees gain access to: 

  1. Competitive benefits packages that are often similar to what larger companies offer 
  2. Easier enrollment and better benefit administration 
  3. Consistent payroll and HR support 
  4. Resources that help with questions about benefits, compensation, or workplace policies  

These improvements help increase job satisfaction and overall retention. In a competitive talent market, the ability to offer strong benefits and dependable support can significantly improve a company’s ability to attract and keep great employees.  

Client Success Story 

“Having GMS administer our payroll, health care benefits, workers’ compensation, and assisting with human resources management has enabled us to focus our own resources on our core business of making quality aluminum extrusions. The contacts that I use at GMS are knowledgeable, professional, and provide accurate information in a timely manner.” 

— Manufacturer 

This testimonial reflects what many GMS clients experience. With HR experts managing essential functions, businesses regain time, clarity, and confidence to focus on their core mission. 

Partner with GMS to Scale in the New Year 

As you plan for the year ahead, consider how outsourcing HR could be a game-changer for your business. Partnering with a trusted PEO like GMS gives you the expertise, infrastructure, and peace of mind to scale without being bogged down in administrative tasks. 

Ready to see if a PEO is right for you? 

Schedule a 15-minute conversation and discover how we can help your business grow in 2026 and beyond.