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What is a PEO?

A professional employer organization (PEO) is a firm that allows business owners to outsource many of their HR management and administrative responsibilities. These can include:

  • Employee Benefit Administration
  • Risk Management
  • HR Compliance
  • Payroll and Tax Services
  • Workers’ Compensation
  • Recruiting Services

Partnering with a PEO lets business owners and leaders focus on growing their business instead of worrying about HR tasks.

Studies from the National Association of Professional Employer Organizations (NAPEO) have shown the value a PEO can bring to small and medium-sized employers:

  • A PEO helps employers grow 7% to 9% faster
  • Companies using a PEO can save 35% on HR administration costs
  • Partnering with a PEO lowers employee turnover by 10% to 14%
  • Employers using a PEO are 50% less likely to go out of business

Contact our team today to learn more about PEO services and how your business can benefit from this HR solution.


PEO Clients

What makes a business a potential fit for PEO services? There are 3 characteristics that could make an employer better suited for a PEO partnership.

1) Company Size

According to NAPEO, the average size PEO client has 23 employees. But PEOs will work with companies of all sizes, ranging from startups with as few as 1 full-time employee to medium-sized employers with around 500 employees. Some PEOs will even work with employers who have more than 500 workers.

2) Looking to Grow

Partnering with a PEO helps owners grow their business by giving them a trusted HR partner and enabling them to focus all their effort on high-value activities. Small and medium-sized employers who want to grow often gain the most PEO services.

3) Seeking Modern, High-Quality Employee Benefits

PEO clients get access to the same quantity and quality of benefits as Fortune-500 employers. These go beyond traditional benefits and include perks like voluntary benefits, complimentary benefits, and more. Often, the benefits offered by a PEO can be tailored to each client, making them more valuable to employees while helping to improve retention and recruiting.


Services Offered by PEOs

While each PEO will have their own unique solutions and products, most will offer the following three main services: HR Services, Employee Benefit Services, Risk Management and HR Compliance Services.

HR Services

  • HR Management
  • Payroll and Tax Services
  • Performance Management
  • Recruiting Services
  • Training and Development
  • Time and Attendance

Employee Benefit Services

  • Health Insurance
  • Dental and Vision Benefits
  • Life and Disability
  • 401(k) and Other Savings Plans
  • Voluntary Benefits
  • Complimentary Benefits

Risk Management and Compliance Services

  • Workplace Safety Improvements and Recommendations
  • Workers’ Compensation
  • ACA Compliance
  • Leave of Absence
  • I-9 Verification
  • OSHA Support
  • Employee Handbooks
  • Employee Policies

To learn more about PEO services, or to find a PEO that best fits your business, contact our team today.