So what is a Professional Employer Organization or PEO?

A PEO is a company that provides a service in which an employer can outsource employee management tasks [1]. How? Well PEOs co-employ with different businesses to adopt and pool all of their employees together, so they can receive better rates on health insurance, workers’ compensation, and state unemployment [2].

With that being said, why should your business utilize the services of a PEO?

Well, a PEO handles all your HR needs like payroll, administration, employee health and retirement benefits, workers’ compensation insurance, state and federal compliance issues, and even worker training.

Therefore, you can leave these administrative responsibilities to a PEO, so you can focus on your core business like finances and customer retention. You’d be surprised at how much time you spend on employee management, and the amount of profit your business can make from outsourcing these tasks.


On top of all that, PEOs can save your business a great deal of money from these expenses. PEOs can save you an average of 1/3 to 2/3 of the cost an average business would spend to provide similar services [3].

So what’s not to love about a PEO? You have the chance to provide top quality benefits programs to your employees, which would increase employee happiness, loyalty, and even attract talented employees. Meanwhile, you’ll be saving money and focusing more on growing your business.

With a staff full of experienced professionals, your business and employees will be placed in good hands. You won’t have to figure out all of these administrative components and give you some peace of mind when it comes to employee management and compliance.

PEOs have the ability for small and mid-sized businesses to compete with the large corporation bullies. Stop worrying about health insurance, ACA compliance, or employee allegations and dish out these issues to a firm who is willing to take on these tasks head on.


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