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Who Uses a PEO?

Posted by Anna Mastrandrea

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Jun 19, 2019 9:00:00 AM

Who Uses a PEOIf you’ve expanded your business in any capacity over the last few years, you’ve likely heard about a professional employer organization, or PEO. More business owners and HR managers are interested in what a PEO can do for them.

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You’re wondering if working with a PEO is the right fit for your business. Do you match the profile of the kind of business that benefits from a PEO partnership?

You might be surprised to learn who uses a PEO.

Small Businesses Benefit Most from PEOs

If you’re planning to expand your business in any capacity, working with a PEO might be an option to consider.

The PEO already has the infrastructure in place to help you expand your workforce from five to 25 and beyond. They provide a robust set of HR solutions smaller businesses just may not have access to.

For example, you may want to provide health benefits for your employees, but you don’t have the capacity to administer the program. Working with a PEO to set up a health savings account could be the answer you’re looking for. The PEO can access better pricing on behalf of their clients, and their expert team are able to administer the program.

Banking, insurance, and other infrastructure are all available to you when you work with a PEO.

Large Businesses Work with PEOs

While small businesses may benefit the most from partnering with a PEO, big businesses are also discovering the advantages of working with a professional employer organization.

PEOs have created infrastructure that’s designed to scale, which means they can administer payroll for 500 employees as easily as they could for a business with just five workers.

Larger businesses often find this helps them realize efficiency within their own operations, especially as they continue to expand. Rather than tying up their HR team with payroll every week, they can partner with the PEO to provide these vital HR services. It also allows them to expand their team to support further growth and new hires.

It may allow for more efficiency in the administration of benefits to their workforce as well.

International Employers Have Much to Gain

Perhaps the biggest benefits from PEO partnerships go to international employers. If you’re thinking about crossing borders, it’s time to consider working with a PEO.

Why do international employers see so many advantages with PEOs? The PEO gives them access to the infrastructure and expertise they need to get started in a new market. The PEO’s team is already well-versed in conducting payroll and ensuring compliance.

They also have the infrastructure needed to employ people, administer benefits like HSAs, and more. If you need access to banking or insurance, the PEO can provide it.

In short, the PEO can help you set up your operations and ensure the people you hire are well taken care of in any market you choose to enter. Having the HR aspects of international expansion handled by the experts allows you to focus on other aspects of the business.

Any Business Can Benefit from a PEO Partnership

Almost any business could benefit from a PEO partnership. While PEOs are particularly helpful for small businesses and expanding international employers, even mid-sized and large employers can realize plenty of advantages when they partner with the right PEO.

Still not sure working with a professional employer organization is the right move for your business? Get in touch with the experts today. We can help you assess your situation and discover just how the right PEO partnership could help your business grow.


Topics: Professional Employer Organization

Anna Mastrandrea

Anna Mastrandrea is the team lead of the payroll department at The Staffing Edge. For over 10 years, Anna has been providing the highest level of customer service to our members. Anna is an important part of our back office operations, running payroll for all of our members assignment employees, ensuring all proper payroll deductions have been set up, billing clients, and processing record of employment and filings to Service Canada. Her goal is to make sure all of our members assignment employees are paid properly, and most importantly, on time. Anna’s passion for challenges, learning, and problem solving makes her a great asset for our members, as no one member’s situation is ever the same. When Anna is not on the job, she enjoys spending time with her family, indulging her love for great wines, and playing volleyball.
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