PEO Resources


What is a PEO?

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.

Value for Any Business

The average client of a NAPEO (National Association of Professional Employer Organizations) member company is a business with 19 worksite employees. Increasingly, larger businesses also are finding value in a PEO arrangement, because PEOs offer robust web-based HR technologies and expertise in HR management. PEOs can partner with companies that have 500 or more employees and work in conjunction with their existing human resources department.

All Industries Can Benefit

PEO clients include different types of businesses ranging from accounting firms to high-tech companies and small manufacturers. A broad range of professionals, including doctors, retailers, mechanics, engineers and plumbers, also benefit from PEO services.

Large Numbers of Employees Covered

PEOs provide services to 175,000 small and mid-sized businesses, and 3.7 million employees.

(Source: NAPEO)

PEOs are expanding

The industry has already grown by almost 10 percent from 2008 to 2017. The industry will continue to expand, and even more small businesses will benefit from working with these types of organizations.
(Source: Business News Daily)

Incredible Growth

From 2008 to 2017, the number of worksite employees with shared employment through a PEO grew at a compounded annual rate of 8.3%. This percentage growth in the PEO industry is 14 times higher than that of employment in the United States economy as a whole.

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