It’s simple. Using a Professional Employer Organization allows business owners and managers to focus on their core competencies…not worrying about the non-revenue related activities of employment.
No. PEOs normally do not recruit, train or provide staff to their client companies as do temporary staffing firms. A PEO arrangement usually involves all or most of the employees of the client company in a long-term employment relationship.
No. PEO client companies and the PEO become partners in the co-employment relationship of their workers. The client retains responsibility for the day-to-day management of the workers. Clients maintain all “hire and fire” authority, handle promotions and provide workplace supervision as required.
Workers want the quality health benefits and the opportunities for retirement savings that a PEO can offer. Through a Professional Employer Organization, Fortune 500 quality benefits can now be available to small and medium size businesses.
One of the best features of using a PEO is the single payment made to the Professional Employer Organization. One payment (usually made with each payroll cycle) is all that is required. The client company reports the amounts to be paid to each employee and the PEO does the rest. Many PEOs offer the ability to report detailed labor related costs to the client company in a form that provides easy integration with internal accounting software.
Many Professional Employer Organizations now offer the ability to “unbundle” services and benefits for clients that already have these capabilities. The advantages of using a PEO remains an attractive solution for many of these companies.
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