Compliance for HR, HR Innovation, HR Management

How Professional Employer Organizations can help your business. Or not. – HR Affiliates Blog

The limited pros and myriad of cons of Professional Employer Organizations

Professional employer organizations (PEOs) require a “joint-employment relationship” with their clients. Under this arrangement, the PEO hires the employees from their clients and leases them back to their original employer. This allows the PEO to “share and manage employee-related responsibilities and liabilities,” including outsourcing limited human resource functions like payroll administration, workers’ compensation, employee benefits, and payroll taxes. 

PEOs can offer a few advantages for certain types of employers, particularly those with limited resources seeking primarily payroll and HR administrative help. But that’s not the whole story. We’ve highlighted some critical points to consider about the way PEOs operate. 

For more information about PEOs and how they can help (or not), contact us today. We’ll explain why our personalized and flexible HR outsourcing programs can be a better fit for your business. And you’ll be talking to an HR professional.