What is a PEO?
- Professional Employer Organizations (PEOs) provide comprehensive and affordable payroll, benefit, and human resource (HR) services for small and mid-sized businesses.
- The employees of PEO clients gain access to employee benefits such as 401(k) plans, health, dental, life, and other insurance, dependent care, and other benefits typically provided by large companies, making the PEO clients more competitive in recruiting and retaining qualified employees.
- PEOs help their clients comply with increasingly complex employment laws and regulations by providing proven policies and procedures and access to centralized professional expertise at a fraction of the cost otherwise required.
- PEOs can provide services to manage risks and reduce costs related to workers’ compensation, state unemployment, and employment practice exposures.
- PEOs can reduce turnover and improve productivity of client workforces by providing services to promote teamwork, ensure good job fit and improve employee satisfaction.
- Most PEOs provide clients with secure 24/7 electronic access to wage and benefit costs and personnel records needed for timely and accurate management decisions.
- The proactive HR services provided by PEOs help prevent or otherwise reduce the time and costs associated with employment related claims, fines and litigation.
- A PEO's comprehensive employer services solution allows clients to reduce the time required to manage vendor relationships by reducing the number of outside service providers.
- Most importantly, by outsourcing non-productive employer requirements, PEO clients can more effectively focus on their company's growth and profitability.
Learn about important critera for selecting a reliable PEO.