PEOs or professional employer organizations serve small and medium-sized businesses, helping them outsource the giant task of managing human resources. This involves HR management, administering employee benefits, workers’ compensation, managing payroll processing tasks, recruiting and selecting staff, maintaining regulatory and government compliance, and managing risks. PEO consulting services are also offered by professional employer organizations where they only provide guidance on the various HR responsibilities mentioned above.
PEO consultancy services are an indispensable requirement of any business. Strict regulations governing employee relations have made HR management an elaborate and resource consuming affair for businesses. Though it may not directly contribute to profit making, businesses need to be accurate and up-to-date in HR administration, especially as failure to do this could result in legal action. Businesses therefore require PEO consultancy services for the smooth management of human resources and all its aspects.
Professional employer organizations offer expert guidance to handle the HR tasks. In most cases PEOs take over the entire responsibility of recruiting and selecting employees, administering their benefits, managing risks, and ensuring regulatory compliance while the client company has total control over the employees.
Companies generally form partnerships with professional employer organizations to take over the entire HR responsibilities or require the professional employer organizations to offer assistance in only some of the HR responsibilities, such as in recruitment and selection of candidates or in benefits administration and workers’ compensation. Client companies sometimes seek PEO consultancy services only to offer them expert guidance in various aspects of HR administration.