PEO - Human Resource Management Services

Managing human resources is one of the most complex and large scale responsibilities companies have to deal with. Yet it is one of those responsibilities that do not directly contribute to the earnings of the business. Being as resource consuming as it is, businesses would do well to outsource human resource management to a PEO (Professional Employer Organization).

Human resource management is a collection of complex tasks involving employee related matters such as employee relations, health benefits, workers' compensation claims, payroll, payroll tax compliance, unemployment insurance claims, and more. A PEO would take over all these responsibilities. Not only would the PEO enable employers to focus on their core responsibilities, but also offer businesses valuable expertise. The client company can therefore fully shift focus to the operational and revenue-producing side of its operations. Human resource management services offered by a PEO generally include:

• Payroll and tax administration


• Employee benefits administration


• Workers’ compensation administration


• Risk management


• Regulatory and government compliance


• Recruitment and selection


• Employer liability management


• Immigration compliance

One of the reasons for the efficiency of PEO human resource management services is the nature of the PEO’s relationship with the client company. A professional employer organization generally enters into a co-employment relationship with the client company, whereby it assumes the client company’s responsibilities, leaving the company to concentrate on its core tasks. Small and medium-sized businesses can feel the advantages of hiring a PEO more, as they are the ones generally struggling with setting apart their resources for maintaining a HR department.