A Professional Employer Organization (PEO) is a company that provides a variety of human resources and administrative services to small and medium-sized businesses. Here are the top five advantages of using a PEO:
- Cost savings: PEOs can help businesses save money by providing economies of scale for employee benefits, such as health insurance, retirement plans, and workers’ compensation insurance.
- Compliance assistance: PEOs can help businesses stay compliant with state and federal employment laws and regulations, such as those related to taxes, labor laws, and workers’ compensation.
- Human resources support: PEOs can provide businesses with human resources support, including recruiting, hiring, and training employees, as well as performance management and employee relations.
- Access to new technologies: PEOs can provide businesses with access to new technologies, such as employee self-service portals, HR management software, and time and attendance tracking systems.
- Flexibility: PEOs can provide businesses with the flexibility to outsource certain HR functions and focus on their core business operations. PEOs can also provide businesses with the ability to quickly scale their workforce up or down as needed.
It’s important to note that when a business partners with a PEO they are still considered the employer, while the PEO acts as a co-employer and takes care of administrative tasks such as payroll, benefits, and compliance, allowing the business owner to focus on their core business. There are over 400 PEOs in the United States. If you would like to leverage our 20 years of experience in HR services to help you find the best fit for your business, negotiate the best terms, and not deal with commission hungry salespeople, then book a free consultation here