How PEO Works

How PEO Works

A PEO is an organization the works with a company to provide leased employees and other services. Standing for Profession Employment Organizations, these groups are responsible for employing, training, and paying large numbers of employees who are leased to other companies to work onsite. There are many things that these organizations can provide for a potential employer.

Offer Onboarding


PEOs provide onboarding and off-boarding so that your company doesn’t have to do it alone. They streamline the process of hiring new employees in order to make your life easier. They run background checks, employment verification and drug screening, in addition to in-depth interviews and skills assessments, on any and all potential new employees. Onboarding can be an expensive and long process for companies, so employing a Professional Employment Organization to take care of it for you will save time and money that could be better spent on other aspects of your company.


Provide Pay to Employees


By using leased employees, you are foregoing traditional salary options for those employees. Their compensation is provided by the PEOs, not your company. You do pay the PEOs for use of their employees, though. The amount of money you pay the organization is dependent upon how many leased employees you desire. Once you pay for the service, you get your employees and the organization takes care of the rest. This can save your company an incredibly amount of money.


Arrange for Benefits


In addition to providing compensation, PEOs can also provide benefits for their employees. These leased employees are provided with benefits that can include workers compensation, a 401k, health and dental insurance. The fact that these are provided by the PEOs means that you won’t have to give these employees benefits. They are already taken care of, so they won’t require anything from your company.


Offer a Wide Selection of Services


In addition to staffing services, many PEOs offer additional opportunities for businesses. Services such as HR consulting, commercial insurance and Human Resource management can all potentially be offered by PEOs. These additional services allow a company to focus, grow and succeed in their field. By providing this type of help, PEOs are doing their best to provide companies with the tools they need to be the best at what they do.


There are many ways in which a Professional Employment Organization can help your small business. They provide well-compensated employees and offer a wide selection of services so that you are free from busy work in order to more effectively run your business. With so many perks, checking into PEOs is a great idea for many companies.

Incoming search terms:

Back to Top