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How HR Managers and PEOs Can Work Together 

4 min read

As your business begins to grow, so does your staff. And as more and more employees join the team, you might find your HR needs are no longer within your internal HR department’s wheelhouse.

Partnering with a PEO can give your in-house HR team the support it needs to help your business thrive. Contributing valuable HR expertise, a reputable PEO will improve your internal HR team’s existing processes and grant you the peace of mind needed to grow your business. So, before your HR specialists begin to fret, allow us to reassure them that PEOs are their friends, not their foes. Read below for a breakdown of how HR managers and PEOs can work together to grow your business. 

What is a PEO?

A PEO, or a professional employer organization, is an external resource used by small or mid-sized companies needing human resource outsourcing. When working together, a PEO and its client company enter a co-employment relationship, contractually dividing administrative responsibilities. As the employer, you will remain in charge of day-to-day business operations, talent management, work schedules, and the scope of work. Meanwhile, your PEO will oversee core HR services like payroll, employee benefits, tax administration, workers’ compensation, and regulatory compliance assistance. 

Does a PEO Replace My Internal HR Team?

Even if you have an internal HR department, onboarding a PEO is not off the table. Once a PEO joins your organization, it can come together with your HR team strategically and administratively to elevate your business. Similar to how you, the employer, and your PEO divvy tasks, your internal HR team can do the same. While a PEO handles payroll, taxes, compliance, and other nuanced HR functions, your internal HR team can focus more on your company’s inner workings and day-to-day operations, centering on ways to bring the best out of your employees. 

How can a PEO Make My HR Team More Efficient? 

Your PEO and internal HR team will have the same goal: supporting your long-term business goals. Together, these two entities can unlock your business’s true potential and take it to new heights. Read below for our comprehensive list of ways a PEO can benefit your internal HR team. 

Risk Mitigation and Compliance

An experienced PEO is always up-to-date with local, state, and federal employment guidelines. When working with your internal HR team, your PEO offers an extra layer of security, assuring your business meets regulatory requirements and is protected from legal complications. 

Time-Tested HR Resources

If you run a small business, your in-house HR team likely won’t have the time for trial and error with different HR management tools. Generally, PEOs have many administrative resources proven to streamline your HR functions. 

Large Employer Benefits

Generally, small and mid-sized companies aren’t eligible for the same benefits as large employers. However, teaming up with a PEO can change that. When entering a PEO partnership, your HR department can access more comprehensive benefit packages that meet health, retirement, and other employee needs. 

Vetted Employee Resources

PEOs aren’t tied to one particular client company, allowing them to collect valuable professional experiences from a broad range of employers. As a result, a PEO will offer vetted HR solutions to meet your employee’s wants and needs, like payroll, worker’s compensation, and benefits administration. 

Simplify Your Business with peo.com 

At peo.com, we make it easier to find the perfect PEO provider for your business. With access to some of the largest PEOs in the country, our agents provide high-performing options that will unlock your business’s true potential. If you’re ready to take your business to new heights, connect with our team today to shop PEO quotes and receive competitive pricing within 24-72 hours!

Ready to take your business to the next level?

Contact us today to learn more about how we can help you achieve your goals.

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