What is a PEO?

According to Wikipedia, a PEO “is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development.”

I am the HR Director at a PEO here in Utah – Solution Services, Inc. When people ask me where I work or what I do, it can be confusing and hard to explain. Sometimes I say we are a mobile HR department, and other times I say that I do HR consulting, and at times I say that we do payroll. And benefits. And safety. And workers compensation management. And training. And employee relations. And, and, and…

A PEO is essentially an entire Human Resources Department for all different kind of companies that don’t have their offices in-house. If a small to mid-size company needed to hire an employee to take care of their HR needs, they might only have the resources to hire one person. Typically there are areas in HR where professionals specialize – like benefits or payroll. Let’s say that company “ABC” hired an HR Generalist that knew basic laws and could hire and manage employees; “ABC” company might still need to hire a payroll company to cut checks, outsource to a benefits firm for their health and dental insurance, and also pay big bucks in hiring an Employment Law Attorney. In hiring a PEO, you get everything you would need from a seven person HR department – with each person in that PEO specializing in their respective fields. All for the same cost of one single HR Generalist, or less! Our entire team becomes your partner in regards to everything that Human Resources requires.

Using a PEO is a smart business move. In today’s world, there are complicated employment laws that with one move, could put your company out of business. FMLA, ADA, FLSA, ACA – which is which and how do you manage each one of those current federal laws? My answer is that you don’t have to. Outsource all of your HR needs with a PEO – a Professional Employer Organization. Call us today. We can meet with you and give you our honest opinion on how we can help you.