What Are PEO Services, and Why Do Businesses Use Them?

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Professional Employer Organization services allow organizations to outsource their administrative tasks to an outside company. Using PEO services allows an organization to concentrate on its core business model instead of having to worry about administrative needs.

If it’s a medical facility, for example, the owner can focus on providing high-quality healthcare services to clients while the Professional Employer Organization ensures that all workers receive their salaries and benefits on time.

Common PEO Services

Professional Employer Organizations offer a wide range of services. They including:

  • Human Resources: Recruiting, training, and retaining workers. They create onboarding materials and complete all necessary background checks.
  • Brokerage Services: They connect businesses with other Professional Employer Organization specialists.
  • Benefits Planning: Paid time off, dental, medical, vision and life insurance, and retirement planning.
  • Payroll Assistance: Ensure employees are paid on time and accurately. Also, they handle tax obligations.
  • Risk Assessments and Management: PEOs review ways to minimize workplace injuries and manage government regulations.
  • Review Workers Compensation Claims: Professional Employer specialists can review all workers’ compensation claims to ensure that all relevant forms are completed. Also, they investigate employee claims.

Why Do Businesses Use PEO Services?

Businesses that work with reputable PEOs have increased their core strengths massively. Some of the major benefits of using PEO services include the following:

Reduce Costs

Professional Employer Organizations help their clients to reduce costs. They help them to save money through:

  • Creating effective strategic plans for the future
  • Discovering new ways to motivate your workers
  • Create and implement better hiring and onboarding practices that minimize turnover

When you start accessing Human Resources services and benefits via a single source, you will have a better sense of your investment in your staff. Services that PEOs offer to ensure you reduce costs include:

  • Recruiting support
  • Performance management support
  • Strategic Human Resources support and planning

Minimize Risk

Through a co-employment relationship with a Professional Employer Organization, your business can efficiently and effectively mitigate a significant portion of the risk as well as the responsibility associated with having workers. Top-rated PEOs employ experts who’re responsible for monitoring employer-related federal and state laws.

With this knowledge, the specialists stay abreast of continuously shifting regulations, laws, and reporting requirements that affect the services the PEOs provide to businesses. To help companies minimize risks, PEOs provide:

  • Worker’s compensation
  • Payroll processing
  • Human Resources administration

Provide Better Benefits and Worker Experience

PEOs offer the opportunity to access a huge range of benefit options. And they do so at better rates compared to what your business could access on its own.

Through a Professional Employer Organization, your workers gain access to massive business benefits and have a contact point for questions and information. This can help your company attract, recruit, and retain top talent.

With a reputable PEO service provider, your workers will have access to employer benefits and training and development. Ensure you’re working with a top-rated PEO service provider.


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