Small and mid-sized businesses often face the same workforce expectations as large corporations but without the same financial resources to attract and retain top talent. One solution more organizations are turning to is partnering with Professional Employer Organizations (PEOs).

A PEO acts as an extension of your HR team, offering services such as payroll processing, compliance oversight, and benefits administration. But beyond operational support, PEOs are uniquely positioned to help smaller companies offer comprehensive benefit packages—often by pooling employees across multiple clients to access group pricing and resources typically reserved for larger employers.

More Than Just HR Outsourcing: PEOs as Strategic Partners in Financial Wellness
PEOs do more than handle back-office tasks—they can be instrumental in promoting employee financial wellness. Alongside traditional benefits, many PEOs provide access to resources like financial coaching, credit management tools, and insurance options, all of which can support employees navigating financial difficulties.

The Cost of Financial Pressure on the Job

Financial stress is not just a personal burden—it has a ripple effect in the workplace. Research shows that nearly 60% of employees report feeling stressed about money, which correlates with a greater chance of job dissatisfaction and turnover. At the same time, around 35% of small businesses cite difficulty in filling open roles.

By offering financial wellbeing support—whether through employer-sponsored initiatives or via a PEO—organizations can help reduce stress levels, boost employee engagement, and foster long-term loyalty.

Insurance Access Is Key to Financial Security

One of the growing concerns for employees is the affordability of home and auto insurance, both of which have seen steep premium increases. In 2024 alone, auto insurance rose by 22%, while homeowners’ insurance jumped by as much as 23%.

These rising costs, coupled with the increasing frequency of severe weather events, have made adequate insurance coverage more essential than ever. Yet many workers struggle to find the time or knowledge to evaluate options, leaving them vulnerable to underinsurance—or policies that stretch their budgets too thin.

Leveraging Digital Insurance Marketplaces for Greater Value

In the past, PEOs would provide insurance offerings through partnerships with specific carriers. However, modern financial wellness strategies now often incorporate digital insurance marketplaces, which offer access to multiple insurance providers, competitive pricing, and tailored policy options.

Platforms like VIU by HUB, for example, integrate with existing HR and benefits technology, offering employees a centralized hub to explore and enroll in coverage that fits their needs. These tools combine the convenience of technology with expert human guidance to ensure that employees make informed, confident decisions about their insurance.

What Employers Should Evaluate in a PEO’s Financial Wellness Offerings

Before choosing a PEO to enhance your organization’s financial wellbeing strategy, consider the following criteria:

• Regulatory compliance: The PEO must be able to navigate multi-state or multi-jurisdictional regulations.
• Data protection: Strong cybersecurity measures are critical, especially when handling sensitive financial data.
• Tech integration: Seamless compatibility with your existing HR and benefits platforms is essential.
• Employee education: Look for providers that offer decision-support tools and resources to help employees understand and optimize their benefits.

Evaluating these factors can be overwhelming, especially for lean HR teams. That’s where a knowledgeable benefits broker or consultant can be invaluable. They can help you identify PEOs with the capabilities and infrastructure to effectively support your workforce’s financial health.

Final Thoughts

As financial stress continues to affect workplace morale, productivity, and retention, employers need to take proactive steps to support their people. PEOs offer a compelling solution—not only to handle the complexities of HR administration, but to serve as a partner in improving the financial wellbeing of your team. With the right tools and partnerships, small and mid-sized businesses can offer impactful support that builds a more resilient and engaged workforce.

Contact HUB International’s employee benefits specialists to learn how PEOs can improve your employees’ financial wellbeing. Partnering with VIU by HUB can give your employees access to a customized experience for their insurance needs.