What Is a PEO? | Extensis Group

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What is a Professional Employer Organization?

A Professional Employer Organization, or PEO, is a firm that allows small and medium-sized companies to outsource most of their HR management responsibilities.

PEOs deliver cost-effective, outsourced services for HR, payroll, benefits, and risk management. This allows owners and managers to focus on growing their business, not managing HR. Many PEOs also offer expanded HR services like time and attendance, recruiting, employee training, and performance management. Click here to find out if a PEO is right for you.

Benefits of Outsourcing to a PEO

Outsourcing critical HR needs to a PEO can help you:

Grow Your Business. When you have a trusted PEO partner handling HR administration, benefits management, and regulatory requirements, you can devote more time to high-value business activities and focus on the mission of your business.

Simplify Being An Employer. A PEO offers you the expertise of experienced, on-staff HR professionals and quick access to their experts in tax, labor law, benefits, and workers’ compensation—all of whom can help improve your company's productivity and profitability.

Gain Economies of Scale. With a PEO, you can gain access to Fortune 500-level benefits at a reasonable cost, allowing you to be more competitive in the labor market while also eliminating the challenges and expenses of managing multiple benefits providers.

Reduce Employment Risk. Though you can never eliminate employment risks, a PEO can help you professionally identify, manage and mitigate employment-related risk.

A Unique Working Relationship

A PEO establishes a special relationship with employers and worksite employees. When engaged, a PEO assumes certain employer rights, responsibilities, and risk, while employers retain control over their business operations, hiring and firing, and staff advancement.

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