Definition: A professional Employer Organization, or PEO, is a Human Resources Outsourcing (HRO) partner for your business that makes having employees easier and less risky through a unique HR outsourcing relationship.

• A PEO is a service provider that contracts to share or allocate certain responsibilities of an employer in the areas of human resources, workers’ compensation, risk management, employee benefits and payroll administration.
• A PEO is essentially a customizable upgrade to your business without having to add staff or costs. In fact, it can reduce your costs.