What is a PEO?
A Professional Employer Organization (PEO) provides a turn-key HR & Benefits management solution. When a business partners with a PEO, they enter into a “co-employment” relationship whereby they divide the responsibilities and liabilities for the company employees. The PEO assumes responsibility for Payroll, Employee Benefits, Workers’ Compensation, Compliance and HR management. The employer in turn, retains the responsibility of hiring, firing, day to day business operations and the management of employees.
How Can a PEO Benefit Your Business?
Businesses today need help managing the increasing complexities surrounding employee related matters. Partnering with a PEO shifts these administrative burdens off your plate, streamlines HR functions and allows you to focus on the core competencies that produce revenue.
A major attraction of partnering with a PEO, is the substantial savings passed on to the client. This is accomplished through a unique concept called “employee benefits pooling.” When the PEO negotiates Workers’ Comp, Health Insurance and any other benefit, they pool together all of their client companies and respective employees. This allows them to negotiate on behalf of a very large pool. The purchasing power generated by this concept enables the PEO to significantly reduce your costs while offering Fortune 500® caliber benefits.
Choosing a PEO
With over 700 PEO’s to choose from, much time and due diligence is required to find the right fit. After a thorough comparison of all marketplace options, Pro HR will help you determine if a PEO relationship is ideal for your business, and which PEO will best serve your needs.