What Is a PEO?
Have you ever wondered how you could save your company money and give yourself less to do with respect to employee management? Why not consider using a PEO?
What’s a PEO? A PEO stands for Professional Employer Organization and is a partner company that can give your employees better benefits, save you money, and take HR and compliance off your plate. It’s how you offer Fortune 500 benefits no matter what size company you are. Here’s the exciting part:
- Small businesses that work with a PEO grow 7 to 9 percent faster, have employee turnover that is 10 to 14 percent lower, and are 50 percent less likely to go out of business.
How does it work? PEOs leverage a legal arrangement known as co-employment. Under co-employment, the PEO acts as the “employer” of your workers for special situations. You retain full control of your company, your employees, and your hiring and firing decisions. But when it comes to benefits and HR, the PEO’s experts step in and do the work for you.
This arrangement is powerful—and substantially more useful than just outsourcing, for example, your payroll. When you outsource, your payroll team is a contractor working for your company. They cannot bring your employees under their own benefit network, and they have no legal power in disputes and claims. They are essentially one more employee in your company.
A PEO is different. Because it acts as an employer, it can offer employee benefits. With thousands of clients, it acts as a very large company with access to the most competitive benefits packages at deeply discounted rates. You get access to the kind of benefits workers would expect at Google or General Motors, whether you have hundreds of employees or less than a dozen.
If you’re reading this right now and thinking, yes, I do need to learn more about a PEO, contact CCPEO Consulting at 817-233-4551 or [email protected]. Together, we will define the best PEO solutions for you and your company.