How PEO services work for Small and Medium Companies


We often hear about outsourcing companies, and co-employment solutions but how are they different from PEO services? And do they work for small and medium companies?

A Professional Employer Organization (PEO) is a solution that enables companies to outsource a part of their operation in a cost-effective way.  Many companies choose to work with PEO services due to their benefits but let’s start by defining how PEO services work.


How does a PEO service work?

A PEO solution allows companies to outsource administrative or entry-level positions while focusing time and resources on higher-value activities. It may seem challenging to manage remote teams but it is actually a lot simpler than it appears. 

A PEO is a type of human resource outsourcing that is also known as co-employment.  Depending on the size of your business, they offer different solutions to make your operation more efficient and significantly reduce costs.

PEO services 

Whether you are looking to outsource your HR functions or hire a remote customer service department, a PEO service can be your solution. Traditionally, PEO services offer recruitment and hiring services, talent management, payroll, benefits administration, and compliance.

But depending on the capabilities of the PEO service you choose, they may offer services that suit your operation, while maintaining your processes and company culture. PEO services are super useful for small to medium companies that don’t have HR expertise and are looking to expand their businesses.

8 ways it can benefit my small or medium business

The main priority of any business is to attract and retain customers, the best way to do so is by having efficient processes and a solid team. So, to be able to have a top-notch team it is important to implement HR strategies to attract, develop and retain talent. 

PEO services can provide this service for your business but you can also benefit from the following aspects:

Higher productivity

Focusing on your core business does not only increase your productivity, but it helps your company grow by dedicating time to new projects. At the same time, delegating the administrative and HR tasks to experts can ensure your organization will run smoothly.

 A more efficient operation

By having someone handle the difficult tasks of the operation, you and your team will have the chance to invest time and resources in improving your business. 

Talent management

Your team is what makes your business successful, a PEO service can take full responsibility for managing every aspect of your employees’ performance. With the correct strategies, PEO solutions can reduce turnover and create a solid team.

Easier strategies

Outsourcing partners have the expertise your business needs when it comes to creating easier strategies. They can assess your operation and determine what it needs to grow. 

Cost reduction

Working with PEO partners can reduce your operational costs by 40-50%. How? Trying to run an operation without the expertise can make you waste a lot of money in the process. PEO services know exactly how to spend your resources and how to make them last.

Qualified talent

Recruitment is not an easy task. Choosing the wrong candidate can truly affect your operation and budget. By partnering with a PEO service provider, finding your perfect candidate becomes an easy task.

Having a team of A-players can boost your company’s productivity and performance and therefore provide better services to your clients.

Legal and compliance issues

Forget about dealing with legal and compliance aspects, PEO partners do that for you. They usually team up with experts on the matter to deal with any issue that your operation may require without any liability.

Employee experience

This aspect is essential for any organization. Providing your team with a great employee experience will make a difference. Employees who feel valued are likely to be more productive and motivate other team members to do their best. 


Learn more about our model!

PEO models work for almost every industry! If you are looking to partner up with a PEO solution and find out the ways we can help your business grow in 2022, check out our services.

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