What is a Professional Employer Organization (PEO)?

Professional Employer Organization (PEO) is a co-employer that assumes many of your company’s HR responsibilities, including onboarding, insurance, and payroll management. An engaging PEO partner can greatly benefit small to medium-sized businesses in boosting their growth.

According to a study by Extensis Group, small businesses that use a PEO can grow 7%-9% faster and reduce employee turnover rate by 10%-14%. Companies that utilize a PEO can see a 27% ROI based on cost savings alone.

A PEO provides guidance from seasoned HR professionals who can help keep your company compliant with employment laws, such as overtime, tax contributions, and employment agreements, ultimately saving you money in legal expenses and fines.

The experienced HR professionals in a PEO are well-versed in employment laws and regulations, which helps businesses avoid legal pitfalls and stay compliant with employment laws within a country.

Partnering with a PEO can significantly reduce the time spent on payroll processing and reports.

Most PEOs automate the payroll process, eliminating the chance of human error and ensuring accurate tax administration in compliance with country regulations.

AYP provides award-winning PEO solution for companies looking to maximize their growth. Talk to our HR experts about it here.