PEO stands for Professional Employment Organization and effectively serves as an human resources department to your business. PEO companies provide a comprehensive package of HR related services including (but not limited to) employee benefits, payroll and tax administration, risk management, human resource management, workers compensation issues and unemployment administration. These PEO companies are not to be confused with employee leasing firms or payroll software companies, who only provide solutions for one or two aspects of your business' human resources needs.

When hiring a PEO, the idea is to enter a co-employer relationship vs. the typical employer/employee relationship. This type of partnership allows the PEO to share in many of the employer liabilities and take responsibility for all human resources activities and compliance issues. You remain in complete control of your business and employee decisions - in fact, many business owners find themselves gaining more control of their company once freed from the cumbersome and time-consuming administrative details.

Partnering with a PEO services company will allow your business to become more efficient and productive, enhancing the quality of your organization. This improved quality will allow your business to compete on a larger scale for in-demand employees, as well as give you a leg up in regard to employee loyalty and retention.

Aside from these benefits, you will be able to focus on doing what you do best-growing your business and dealing with the more pressing issues of running it.