What is a Professional Employer Organization (PEO)?

A Professional Employer Organization, or PEO, is a business model that helps small to mid-sized business manage the everyday HR needs that smaller businesses struggle to handle alone. Some examples include:

  • Filing payroll taxes
  • Providing health insurance (and other benefits)
  • Getting workers compensation coverage
  • Writing employee policies
  • Managing employee issues

A PEO manages the full employee lifecycle under one roof—consolidating your vendor relationships and, ultimately, freeing you up for everything else that matters to your business.

The "employee lifecycle" is a practical way of looking at employment and depicts the critical points where employers can enhance the employee experience.

Find the Right PEO

Critical Employee Touchpoints

By mastering these essential touchpoints, your business will minimize risk and maximize your return on wage dollars spent.

#1 Recruiting - Attract the employees who will help drive your business and increase profits.

#2 Hiring - Effective hiring processes help employees get up-to-speed and become productive quickly.

#3 Compensation - Determine competitive wages so you can attract better employees.

#4 Benefits - A comprehensive employee benefits package will help you retain and attract high quality employees.

#5 Payroll & Tax Administration - You receive employee productivity in return for your investment of wages, but after that it is mainly a highly regulated administrative function that has to be done properly to avoid penalties and fines.

#6 Performance Management - Gauge the performance of your employees and your company in order to maintain expectations and improve overall employee productivity.

#7 Worker's Compensation & Liability Management - Mitigate risk of fines, lawsuits, and poor return on wage dollars spent by reducing the likelihood of workplace injuries and employee conflicts.

#8 Compliance - Employment is one of the most regulated and risky aspects of running a business, which is why you must have a plan that protects your company from fines and litigation.

#9 Document Management - High quality record keeping is essential because it is required by law, protects companies from frivolous litigation, and helps drive employee productivity.

#10 Employee Termination - Separation can be the riskiest point in the employment relationship. It has a lot of regulation and may impact your customers, revenue, and other employees.

These 10 critical points of the employee lifecycle are often neglected because they are not perceived as value-added tasks. By improving some of these critical points, companies:

  • Experience greater productivity
  • Reduce risk
  • Attract better employees
  • Retain employees
  • and more

A PEO helps you at each of these steps and will focus on the regulatory preparation/paperwork and day-to-day employee administration so you can focus on HR strategies that impact your profitability.

How Does a PEO Work?

A PEO standardizes and harmonizes critical employee management processes.

Standardization - Creating uniformity in payroll, benefits administration, and HR processes that help you more consistently meet cost and business objectives.

Harmonization - Handling many specific processes and making sure they all fit together harmoniously.

When you establish this level of consistency, a series of things can happen:

  • Processes become more consistent and therefore more reliable.
  • With fewer inconsistencies, you can mitigate the risk of unexpected costs, lower the maintenance costs of employee management processes, and increase business agility.
  • With better systems and practices in place, you can reduce the likelihood of errors and miscommunication (whether between technology systems or departments).
  • And ultimately, you get more control over business operations.

Call us today at (855) 667-4621 to learn more.

Meet Your PEO Specialist

Alex Miller

Alex Miller

Alex began his insurance career in 1995 with Empire BlueCross BlueShield (Anthem). There he rose to Senior Sales of Large Groups. In 1998, he founded Millennium Medical Solutions Corp., a group employee benefits and PEO agency, which was acquired by World Insurance Associates in June 2020. Alex joined World Insurance as Director of PEO Benefits.

Alex is a resident of Westchester, married to Lee Miller, and father of three children. He is an active member in his community, serving on school boards and volunteering for Meals on Wheels. He is an avid swimmer, kayaker, ranked backgammon player, and long-time suffering Jets fan.

Alex holds a Bachelors in Science in Business, Management & Finance from Brooklyn College and a Bachelors in Science in General Science (Pharmacy) from Long Island University. He is a noted blogger and is passionate about his craft.

Let Us Help You Find the Right PEO

If you're looking to save on your insurance you've come to right place

Let's Get Started!