What is a PEO
A professional employer organization (PEO) is a company that provides various human resources (HR) services to businesses on a contract basis. The goal of a PEO is to help businesses manage their HR tasks more efficiently, so that they can focus on their core business operations.
One of the main services offered by a PEO is co-employment, which involves the PEO sharing employment-related responsibilities with the client company. This can include handling HR compliance, training and development, payroll administration, and employer liability management.
In co-employment, the PEO acts as a co-employer of the client company's employees, meaning that the PEO assumes some of the responsibilities and liabilities of an employer. This can include complying with employment laws and regulations, managing employee benefits and payroll, and handling HR tasks such as recruiting, hiring, and performance management.
In addition to co-employment, a PEO may also offer a range of other HR services, including employee benefit plan sponsorship, risk management, and employee training and development. A PEO can help businesses save time and money by handling many of the tasks involved in managing a workforce, and by providing expertise and guidance on HR best practices. Overall, a PEO can be a valuable partner for businesses looking to streamline their HR processes and focus on growing their business.
Small Businesses that work with PEOs grow 7-9 percent faster
Employee turnover rates are 10-14 percent lower
50% less likely to go out of business
Return on Investment of using a PEO in cost savings alone is 27.3 percent
PEOs provide services to 173,000 small and midsized businesses employing 4 million people