PEO & HR Outsourcing · Quick Guide
What Is a PEO?
A Straightforward Guide for Business Owners
A Professional Employer Organization, or PEO, gives businesses access to technology, administration, resources and expertise that support many of the responsibilities that come with having employees.
A PEO doesn't run your business or replace your team.
It provides infrastructure and expertise behind your team.
The business still manages its people, makes employment decisions, provides information and approvals, and manages the PEO relationship.
The PEO provides systems, administration, technology and specialized support that help the employer perform those responsibilities more efficiently.
How it fits together
Your business
Decisions · Leadership · People · Culture
PEO infrastructure
Technology · Payroll · Benefits Administration · Workforce Tools
PEO expertise & support
HR · Compliance · Benefits · Risk & Safety · Strategic Support
Less admin. More capacity for your people and your business.
Someone within the business still needs to manage employees, provide accurate information, review and approve payroll, make decisions and oversee the relationship.
You don't have to be the HR expert.
The right PEO can provide technology, infrastructure, administration and expertise behind your team, helping reduce administrative burden so the business can spend more time focused on strategy, culture, people and business outcomes.
The services
What can a PEO provide?
Tap any area to see what it typically includes.
Payroll & Timekeeping
Payroll and timekeeping technology, payroll processing, tax administration, accrual tracking, reporting and employee visibility into pay and time-off information.
HR Support
HR administration, resources and access to HR expertise that can provide both day-to-day and strategic support to the internal team.
Employee Benefits
Benefit options and administration that may be available through the PEO, including enrollment technology, eligibility tracking and applicable ACA administration and support.
Risk & Safety
Workers’ compensation through the PEO arrangement may be available, along with claims, workplace safety and risk-management resources.
HR Technology
Tools that may support onboarding, employee records, workflows, employee self-service, learning and other connected workforce functions.
Compliance Resources
Resources, technology and expertise designed to help teams navigate many employment-related requirements.
Retirement Services
Retirement services may be available or integrated as part of a PEO’s overall offering.
Service & Support
The people behind the platform. Service model, access to specialists, responsiveness and proactive support can vary significantly between providers.
Not every PEO provides the same services, technology, programs or level of support.
The trigger
Why do businesses consider a PEO?
Does this sound familiar?
"HR has become someone’s second job."
"We’re spending too much time on administrative work."
"We’re growing into new states and things are getting more complicated."
"Our payroll, HR and benefits systems don’t work well together."
"We need more HR expertise, but we don’t need to build an entire internal department."
"Risk, safety or workers’ comp considerations are becoming harder to manage."
"We’re tired of chasing different vendors every time we need help."
What if I already have HR?
A PEO shouldn't replace a good HR team. It should make that team stronger.
With the right infrastructure and specialists behind them, internal HR can spend less time buried in administration and more time focused on strategy, culture, retention and people outcomes.
Are all PEOs basically the same?
Not even close.
Two PEOs may check many of the same boxes on a proposal and still provide very different experiences.
The lowest number on a proposal isn't automatically the best value, and proposals that appear similar may contain different services, assumptions, fees and contract terms.
The question isn't simply, "Do I want a PEO?"
It's "Which solution actually fits my business?"
Is a PEO right for every business?
Nope.
A PEO can be an excellent fit for some businesses. For others, standalone payroll/HCM, an ASO or another structure may make more sense.
There is no single magic employee count. Workforce, locations, benefits, internal resources, industry, growth plans and business priorities can all affect which solution makes sense.
Where should I go next?
What Are My Options?
Coming soonPEO vs. Payroll Company
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