PEOs or professional employer organizations cater to small and medium-sized businesses, helping them outsource the mammoth task of managing human resources. This involves managing human resources, administering employee benefits, workers’ compensation, managing payroll processing tasks, recruiting and selecting personnel, maintaining government and regulatory compliance, and maintaining Risk management. PEO consulting services are also offered by professional employer organizations where they only provide guidance on the various HR responsibilities mentioned above.

PEO consulting services are an indispensable requirement of any business. Strict regulations governing employee relations have made human resource management a complex and resource-intensive matter for companies. While it may not directly contribute to profit, companies need to be accurate and up-to-date in human resource management, especially since failure to do so could lead to legal action. Therefore, companies require PEO consulting services for good human resource management and all its aspects.

Professional employer organizations offer expert guidance in handling human resource tasks. In most cases, PEOs take full responsibility for recruiting and selecting employees, administering their benefits, managing risk, and ensuring regulatory compliance, while the client company has full control over the employees.

Companies typically form partnerships with professional employers’ organizations to handle all HR responsibilities or require professional employers’ organizations to offer assistance with only some of the HR responsibilities, such as recruiting and selecting candidates or in benefits administration and workers compensation. Client companies sometimes seek PEO consulting services just to offer them expert guidance on various aspects of human resource management.