Professional employer organizations (PEOs) are somewhat unique organizations that help employers increase efficiency and productivity by outsourcing HR functions. Companies that offer PEO services and their clients work out co-employment arrangements that determine each party’s responsibilities. Together, they can do what is best for employees in everything from benefits administration to taxes and payroll.

So, what types of companies utilize PEO services? Is there any one industry more likely to utilize the PEO model? Does a company have to employ a minimum number of people before the PEO model makes sense? All these questions, and more, will be answered in the following paragraphs. As you read, please bear in mind that VertiSource HR offers world-class PEO services to companies of all types and sizes.

Clients Are Typically Small Businesses

PEO services are predominantly utilized by small businesses with fewer than 100 employees. However, the appeal of outsourcing benefits administration and HR extends beyond just small companies. Larger companies are gradually recognizing the benefits of PEO services, thanks in part to the emergence of HR technologies and cloud-based tools. These factors make PEO services attractive to companies of different sizes, regardless of the specific number of employees they have.

Clients Come from All Industries

There isn’t any one particular industry that benefits most from PEO services, either. That is because the PEO concept isn’t specifically geared toward any one industry. It is an HR tool more than anything else, and companies in every industry have HR responsibilities.

Here are just some of the types of businesses the NAPEO says to make use of PEO service providers:

  • Accounting firms
  • Small manufacturers
  • Tech companies
  • Medical clinics and private practices
  • Auto repair shops
  • Engineering firms
  • Home improvement contractors

PEO services are all about taking the weight of HR off the employer so that its managers and team members can focus their time and energy on more important things. This sort of thing tends to benefit small businesses more because there are fewer employees to handle HR tasks. Still, even larger companies are gradually turning to the PEO model.

What PEO Services Can Do for You

If you are wondering whether outsourcing HR and other functions is right for your company, ask yourself how much time and effort is being put into HR. If HR functions are preventing your team from being the best it can be in other areas, an HR outsourcing partnership might be what you need.

A PEO is a co-employer whose main responsibility is to handle HR functions. This can include everything from hiring/firing and administering benefit plans to handling reporting and tax compliance. Letting a PEO handle such things frees you and your team up to do whatever it is you do best.

Affordable Services for Your Needs

Outsourcing partners might differ in the way they provide PEO services. But overall, the model remains consistent throughout. Companies like ours provide affordable services to meet a variety of needs. We invite you to learn more about outsourcing administration options and how they might benefit your company.

PEO services are enjoyed by small and large businesses alike. They are utilized across nearly every industry as well. The PEO model works well for nearly any kind of company because its main goal is to make HR functions more efficient and productive. When HR function is improved, so is overall company performance. That is pretty much the goal in a nutshell. PEO services are designed to make companies better from top to bottom.