A PEO broker is, indeed a game changer in this busy world of business today. Providing companies with easy access to the ideal Professional Employer Organization that will ensure they have an easy solution to meet their various needs regarding HR, payroll, and employee benefits will most certainly enable those firms to sustain better growth while enhancing profitability.
Whether you run a small business looking to streamline operations or you’re growing a company and want to better enhance the benefits of employees, the PEO broker is the ticket. They offer access to specialized services which are perfectly suited to your needs. So, what does the PEO do exactly? Let’s dig deeper into it.
What Does PEO Stand For?
Professional Employer Organization PEO stands for Professional Employer Organization. A company partners with a business to engage in managing principal HR functions such as payroll, employee benefits, compliance, and workers’ compensation.
This co-employment agreement implies that the PEO will take administrative responsibility while leaving the business in charge of daily activities and employeeemployee management.
What is the Difference Between HR and PEO?
HR means human resources, which is the internal department or team within an organization that is responsible for personnel management, including recruitment, employee relations, and compliance with labor laws. A PEO is an outside provider that absorbs these HR responsibilities through co-employment.
This means companies can outsource most HR activities since they would not have to bother about those administrative burdens; instead, they can enjoy the expertise of the PEO with respect to legal compliance, payroll processing, and benefits management.
Simply put, although it is an in-house function, a PEO only provides an outsourced HR solution for companies willing to reduce their inefficiency.
What Are the Three Types of PEO?
PEOs can be different because of the services they offer. Among the most popular kinds of PEOs are:
- Administrative Services Organization: An ASO offers a full spectrum of HR services but does not involve co-employment. The business is always the employer of record and is retained with full control over the operation. The ASO manages all such payroll, compliance, and administrative functions.
- Full-Service PEO: In this, the PEO will be operating on a co-employment model wherein the PEO itself will be assumed as the employer of record for tax and regulatory purposes. They get more embedded into HR functions and provide full-service offerings in payroll and compliance, employee benefits, and other matters included.
- Human Resource Outsourcing (HRO): HROs are companies that offer tailored human resource services that are tailored to one’s business needs. There is also the flexibility to choose the Human Resource functions that can be outsourced from an organization, such as recruitment or benefits management.
Is PEO Right for My Company?
Whether or not a PEO is right for your business is really an entirely dependent matter. You will find it very beneficial if you have a small to mid-sized business where your main problems linger in areas of HR management, compliance, or employee benefits. Outsourcing these functions will save you precious time and keep costs low while going out there to grow your business.
But if your company likes to maintain full control over its HR functions internally or outsource only with limited scope, you don’t need a PEO. Simply assessing your needs, growth goals, and budget will determine whether you should find a PEO broker who can further help your company.
Conclusion
With access to many options in PEO, this will make things easier for a business trying to find the right kind of HR partner. A PEO broker can help you sort out some of the most complex HR issues, streamline payrolls, and even enhance benefits for your employees.
Maybe it’s just that time that made the stress of handling all the headaches of HR management too difficult, and now is the best moment to investigate PEO solutions that fit your business needs.