What are PEO Services?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 10 October 2019
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As the need for bringing in experts that can function in a number of different levels of management become more attractive in many instances, PEO Services,(Professional Employer Organization), have become increasingly popular. Here is some background on PEO services and when a company may find a relationship with such a service to be an excellent choice.

PEO services are more properly called professional employer organizations. The concept behind a PEO is to create a network of professionals that are able to step in and fill a void that is left suddenly within an organization. The void may be created due to a short-term or long-term illness, a resignation, or a termination. Professional employer organization services help to match the needs of a company with the right business professional, so that the organization can be about the business of not only maintaining profitability but also expanding.

Working as an independent human resources advocate for a corporate client, a PEO will come in and help develop a profile of the skill levels required to successfully provide competent leadership for whatever time frame is required. This HR outsourcing allows the existing human resources department to focus on other important employee issues, since a PEO will often have resources that the standard HR department could take weeks to develop.


Along with the broader network of professionals that a PEO can tap into, allowing PEO services to provide outsourced human resources to an organization has several advantages. During the evaluation period, PEO experts may be able to discern some needs that the corporation has not recognized. This insight can lead to the selection of a professional that will do more for the company that was originally envisioned. Second, professionals that are placed by a PEO generally enjoy a comprehensive benefit package that is beyond what some companies could afford. Last, PEO services can provide support for any time frame, from a few weeks to several years, depending on the circumstances. This degree of flexibility has helped many companies see their way through temporary issues, only to emerge as a bigger and better organization once the crisis has passed.

PEO services exist that offer the expertise of professionals from a wide array of backgrounds, from manufacturing to publishing to telecommunications. There are even PEO services that specialize in providing highly qualified persons to nonprofit organizations as fundraisers, executive directors and other important roles. As a great way to tap into professional resources from all walks of life, PEO services are truly asset to the business world.


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