Professional Employer Organization

A professional employer organization, or PEO, is a firm that provides small and medium-sized companies with cost-effective, outsourced HR services that allow business owners and managers to focus their efforts on high-value activities to grow their business.

Some of the services offered by PEOs include:

• Payroll and tax services
• Risk management
• Employee benefit administration
• HR management
• Workers’ compensation
• HR compliance
• Recruiting services
• Learning and development

Why work with a PEO?

Working with a PEO helps business owners gain back valuable time, ensure compliance with employment legislation, enhance employee benefit offerings, boost retention and recruiting efforts, and reduce HR-related costs. Additionally, the National Association of Professional Employer Organizations (NAPEO) has conducted research that has shown just how valuable a PEO can be to small and medium-sized employers:

• The ROI from working with a PEO is 27%
• PEOs help lower employee turnover by 10% to 14%
• Clients grow 7% to 9% faster with a PEO partner
• PEO clients are 50% less likely to go out of business

What are the services offered by PEOs?

A PEO can offer business owners a personalized HR solution that fits the exact needs of their business and employees. The most common PEO offerings include employee benefits services, risk management and compliance services, and HR services. Within each of these solutions there are numerous products and services available to business owners.