If your small or mid-sized company struggles to manage complex human resource tasks, a Professional Employer Organization, or PEO, is a popular way to outsource human resource functions like payroll, employee benefits, allowing business owners to focus on running their company.
A PEO establishes a co-employer relationship with your staff and contractually assumes certain employer rights, responsibilities, and risk. PEOs pay wages and associated employment costs in exchange for a fee. Business owners remain responsible for managing daily operations, including employee supervision and management.
One of the main draws of TrussOne and the inclusion of a PEO is the selection of coverage options for medical, dental, and vision care, as well as life, disability and workers’ compensation insurance.
Other ways a PEO can benefit your organization include:
- Providing assistance across the employment spectrum — hiring and firing, job descriptions, employee handbooks, worker retention tools, and staffing strategies.
- Helping implement improved employment practices, compliance, and risk management to reduce liability.
- Allowing access to comprehensive employee benefits, giving your company a competitive edge in the labor market.
PEOs are increasing in popularity as U.S. employers seek to emphasize core functions and increase efficiency, while foregoing internal HR departments and the costs associated with them. The National Association of Professional Employer Organizations (NAPEO) estimates that 250,000 small and mid-sized businesses and their 2.5 million employees are part of PEO arrangements. These numbers are expected to grow as the nation’s economy improves and employers recognize the advantages of outsourcing HR functions.