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4 Services a PEO Company Can Offer

4 Services a PEO Company Can Offer

A Professional Employer Organization (PEO), provides full-service HR and administrative services for their clients. Clients can customize their services to what their business needs. Most PEO services offer recruiting, payroll, benefit plans and administration, employee relations, training and development, risk management and workplace safety, and regulatory compliance.

With the help of a PEO company, you can turn your business human resource jobs over to a dedicated team of HR specialists. By outsourcing your HR and administrative needs, you can focus more on growing your business. PEO is offered through a practice called co-employment. When you enter into a co-employment agreement with a PEO service, the majority of the risk and responsibilities of employee administration and government compliance is taken over by the PEO company, your essentially both the employers of the business and share liability.

The average client size for PEO companies for 20 employees or less. Businesses that have less than 20 employees benefit from services offered by a PEO company, including buying power, accessing available resources, payroll, HR, and compliance.

Here are four services a PEO company can offer:

1. HR Guidance & Administration

HR & administration tasks require a lot of time from payroll processing, writing job descriptions, and coordinating benefit packages. This is a reason many small businesses have difficulty with administration and growing a business. A partnership with a PEO company means you no longer need to take time away from your business to administer, manage, and organize employees paperwork and payroll. The HR specialist employed by the PEO will oversee the managing of employee paperwork. Also, with a PEO company, you have HR specialists available to assist you in difficult employee-related tasks, such as firing an employee, or sexual harassment claims, handling situations. PEO services employ HR specialists who are knowledgeable in the industry’s best practices, so when you partner with a PEO, you have access to these specialists to provide assistance and answer questions.

2. Benefits

Small companies usually don’t have the leverage to offer employees benefits such as medical insurance and retirement plans that are incentives for candidates searching for a job. May insurance providers don’t provide benefits to small businesses because it is less profitable for them. As the client of a PEO company, your employees become the employees of the PEO and its other clients, to form one large unit. So, the PEO service has better buying power with benefit providers and can offer your employees less expensive health care benefits and coverage.

3. Recruiting

Having a healthy work environment is critical to maintaining productivity employees. Small businesses do not know how to make their company a more appealing work environment. Potential candidates, often value benefit packages, as much as the salary. Offering benefits to top-quality candidates is more comfortable with a PEO company. Plus, HR specialists that work for a PEO company can provide extra benefits to attract top talent, such as setting up paid time off programs that improve your compensation structure and make your business a more sought-after place to work.

4. Government Compliance

Business owners need to be up to date on any changes that are made to the labor laws and regulations. Keeping up to date on the ever-changing labor regulations and rules can be a time-consuming job, and for someone who doesn’t understand requirements trying to make sense of legal text can be frustrating. A PEO company keeps an eye on your business dealing and makes sure you comply with state and federal regulations.


PEO companies can help you improve your business. When you are ready to decide to partner with a PEO company you need to know your business’s strengths and weaknesses so you can determine what needs you have and how a PEO service can help your business.

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