Why smart startups are turning to professional employer organizations

Being the next white hot IPO is hard enough

Startups face unique challenges on the road to maturity. As your business grows, so do the strains from employee-related services and new government regulations. Inevitably, the critical attention of your leadership is diverted away from strategic decision making. You have enough to worry about without administrative burdens slowing you down and distracting you from making the magic happen.

Pressure to scale

Results are measured in quarters, not years. To survive, much less compete, you need to focus on execution and innovation.

War for talent

Attracting and retaining the right people is critical to achieving results, yet the war for talent is feverish.

Cost of benefits

The cost of employee benefits has gone up dramatically and is subject to continual swings and unpredictability.

Compliance complexity

ACA regulations have brought a wave of compliance obligations that are difficult to understand and costly to implement.

What if you could hand over key HR responsibilities to a trusted partner?

What if you could proudly offer your employees big-company benefits without the big-company price tag?
What if you had more time and freedom to focus on the goals your board has put in front of you?
What if you could leverage a team of dedicated experts in HR best practices and compliance?

What if you could help your budding company avoid unpredictable costs and other risks?

How a PEO works for you

What is a PEO, anyway? A professional employer organization (PEO) is a firm to which an employer can outsource employee management tasks, such as benefits, payroll, workers’ compensation, onboarding, risk and safety management, and training and development. The PEO hires a client company’s employees (by accruing wages under its Federal Employer ID), thus sharing responsibility for payroll tax and insurance purposes.

A PEO lightens your load. Some of the smartest up-and-coming companies are letting a PEO handle employee management responsibilities so that they can focus on the core competency of their business. You can too.

Better employee benefits
A PEO can help you offer your employees the kind of benefits they could only expect from a much larger, more established organization. These “big company” benefits can be your secret weapon when competing with other startups for top talent.
A dedicated team of HR specialists

A PEO enables you to have the very best HR expertise in your corner, without staffing an HR department yourself. Take advantage of a proven team who are experts in everything from benefits to payroll to HR policies and compliance issues.

Worry-free payroll administration
A PEO ensures that you don’t get stuck in the weeds of payroll management. You can have payroll experts ensuring that you’re following best practices while you focus on running your business.
Government compliance

The ever-changing compliance factors involved in being an employer can be intimidating and time consuming for a young company that needs to scale quickly. A PEO specializes in compliance issues and can ensure that your company meets government regulations.

Healthcare reform support

The Affordable Care Act has brought a wave of compliance obligations that are difficult to understand and costly to implement. A PEO can provide the expertise you need to make sure your employee healthcare benefits are well-managed.

Protection from risk

Don’t expose your company to unnecessary risk. A PEO makes sure you are as protected as possible from risks and litigation that could severely jeopardize your ability to execute on your vision.

Learn the lingo

Get up to speed on HR speak with human resources definitions that any human can understand.

PEO adoption by the numbers

Number of small and mid-sized companies that utilize a PEO.


Percentage of companies on a PEO offering retirement plans to their employees

Average number of people receiving healthcare provided by a PEO

Sequoia One’s approach

Now that you know what a PEO does, find out why Sequoia One is the perfect fit for high tech startups.

Sequoia One clients are covered by a free financial assurance program from Employer Services Assurance Corporation (ESAC). Our accreditation with ESAC demonstrates our commitment to protecting our clients and promoting a high level of integrity and responsibility within the PEO industry.

©2023 Sequoia One PEO, LLC. All rights reserved.    Privacy    Terms    License

Sequoia Benefits and Insurance Services, LLC and Sequoia One PEO, LLC are separate and distinct businesses. All licensed insurance services are provided exclusively by Sequoia Benefits and Insurance Services, LLC (California Insurance License No. 0D69255). All PEO services are provided exclusively by Sequoia One PEO, LLC. All registered investment advisor services are provided exclusively by Global Retirement Partners.


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