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Ultimate Guide to PEO: Here’s Everything You Need to Know About Partnering With a PEO

PEO means Professional Employer Organization, a specialized HR services company that helps overcome HR and employment challenges through a co-employment framework. A PEO is an HR outsourcing company specializing in helping small and medium-sized organizations manage and make the most of their relationships with their employees.

PEOs leverage their relationships with a vast network of benefits providers, such as health insurance and retirement plan companies while incorporating high-end HR technologies and rich industry experience to provide employers with human resource services that they (employers) may not be able to provide alone for themselves.

In our recent ebook, Ultimate Guide to PEO, we provide you with current and robust insights regarding PEO services, the benefits of hiring a PEO, how to choose one, the cost of PEO services, and cases studies that perfectly typify PEO use cases.

Who Needs a PEO?

Startups, SMBs, and even large corporations often rely on PEOs to ease their HR burdens. Many small and mid-sized businesses, especially startups, struggle with several human resource-related areas of their businesses, and that’s where a PEO partnership is vital. These challenges can sometimes be overwhelming and might cripple a business if not addressed in time.

From talent onboarding to payroll processing, risk management to healthcare compliance, and workers’ compensation insurance to other employee benefits and perks, managing employees can truly be a huge challenge for many organizations, including big corporations. You save yourself the trouble by teaming up with a PEO. When you partner with a reliable, professional employer organization (PEO), the company can take these burdens off your shoulders.

Working with a PEO enables you to channel the best of your time and resources into other productive areas of the organization. As a small business, you can finally unlock the true potential of your business, doing your best work, and improving your bottom-line while retaining the best talents on your team.

Learn more about the benefits of partnering with a PEO services provider in the Ultimate Guide to PEO free ebook.

How Does the Co-employment Model Work?

In a co-employment, businesses retain complete control over their employees and their companies while improving their ability to execute quickly as they grow and expand into other markets. The PEO-employer relationship thrives on the backbone of a successful co-employment business relationship.

According to the National Association of Professional Employer Organizations (NAPEO), a typical co-employment model involves a contractual allocation and sharing of specific employer responsibilities between the PEO and the client, as delineated in a contract typically called a client service agreement (CSA).

The co-employment model allows most small or medium-sized businesses to access benefits that they probably don’t have the luxury of “departments” to handle on their own. PEO companies are different from employee leasing companies of the past because they offer a wider variety of services to clients, and the services offered are far more advanced.

Through this unique partnership, PEO organizations can better support small and medium-sized companies, helping them to provide affordable benefits, attract and retain the best employees, and have access to top-notch platforms that they could not get from employee leasing companies in the past.

Grow Your Business Today with Mission

Mission is a growth strategist specializing in helping small and mid-sized businesses perfect their growth strategies and scale with fewer challenges. Over the years, we have helped lots of businesses find their feet in their industry and niches, as well as establish a noticeable presence that generates increased revenues. Need to discuss your growth today? Feel free to reach out to us.

At Mission, we use our profound HR and market insights, combined with expert guidance to help you improve your business productivity and marketing results. Also, as a leading partner in the PEO, HR, payroll, and benefits outsourcing marketplace, we provide result-oriented services for small and medium-sized organizations and government contractors.


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