What is a Professional Employer Organization (PEO)?
A PEO is a type of human resource outsourcing often used by small and medium-sized companies. A PEO often takes over certain administrative functions of the client company, such as payroll and tax filing, benefits administration, talent management, or even compliance.PEOs often group client companies together, which helps the companies lower costs, get better benefits packages for their employees, and significantly reduce paperwork.Not to be confused with:
Not to be confused with:
Who should hire a PEO?
While anyone can use the services of a PEO, SMBs form a major part of their clientele. Organizations who are new to the market and do not yet have the bandwidth to hire a whole team for certain HR functions should go for a PEO’s services. Companies that frequently need seasonal staff for particular projects can also benefit massively from hiring a PEO.