Professional Employer Organizations
Information about companies that use PEOs:
Expected annual median revenue growth for PEO clients is greater than comparable non-PEO firms.*
PEO clients were 16% more likely to report an increase in profitability compared to those not using a PEO.*
Small businesses using a PEO grow 7%-9% faster than other small businesses not using PEOs.*
*NAPEO 2024.
What is a PEO?
Essentially, a PEO becomes a co-employer of a business’s employees. The PEO takes on certain employer responsibilities such as payroll processing, benefits administration, HR management, compliance assistance, and risk management. The client business maintains control over its operations and retains responsibility for day-to-day management of its employees.
How is PEO Different From ASO?
PEOs and ASOs offer HR solutions to businesses with different levels of involvement and legal relationships. ASOs function more as service providers, maintaining the client’s status as the sole employer. PEOs assume shared legal responsibility with the client, providing comprehensive support in risk management and compliance, whereas ASOs offer more autonomy to clients, who retain ultimate responsibility for HR functions.
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