Most people do not know much about how enormous the market is for professional employer organizations. If you look at the United States market alone, people spend more than $284 billion on professional employee organizations every single year! The PEO industry employs more than 3.8 million people around the country!

But why is there so much demand for PEO services? PEO services, in general, provide an incredible variety of benefits to the businesses they work with. ASO services also generate a lot of demand from companies looking to simplify.

Read on to learn all about the most important things to understand about PEO services and what they might be able to do for you!

What Are PEO Services?

PEO stands for professional employer organization. Professional employer organizations are specialized companies that manage human resources.

Many people compare professional employer organizations to managed information technology services. Not every company needs to have its own technical department.

Instead, many businesses thrive by hiring an outside company to take care of their technical problems. This allows them to focus on what they are best at.

In the same way, not every company needs to have its own human resources department. Many businesses succeed by outsourcing their human resources needs to a professional employer organization.

Just as with managed information technology services, this allows companies to streamline their operations and focus on growth rather than managing details. Of course, many companies with human resources departments also get a lot out of working with professional employer organizations.

That is because these organizations are able to provide human resources options that most companies cannot. By specializing so much in only human resources, they can outcompete most human resources departments that are only a small part of a larger company.

Enjoy the Best Payroll Services Tampa Has to Offer

So what exactly do PEO services do for the companies that hire them? If you look at the payroll services Florida has to offer, you will find that many of them can provide better payroll management than your own company’s human resources department might be able to.

PEO companies can manage all of your payroll processing. They can also manage all of your payroll taxes at the federal, state, and local level. PEO payroll error rates are often lower than those of human resources departments.

Improve Your Administration Situation 

PEO companies often find ways to provide the best possible benefits to employees and company leaders alike. That means that your company may be able to enjoy superior health and dental care. You may even be able to improve these options while paying less.

PEO Services Can Help You With Compliance

Compliance is a complicated issue. This is in large part due to the fact that the rules for compliance tend to change from year to year.

However, professional employer organizations can dedicate experts to figuring out compliance even as it changes. This can allow them to maximize your compliance with as little cost as possible. In some cases, that can save you money on unemployment insurance, workers’ compensation, and more.

Protect the Safety of Workers

Many companies struggle to keep their employees trained for their own safety. Of course, such companies can always focus more on training. However, that requires taking attention away from growth and other aspects of running the business.

Professional employer organizations can provide excellent training for your employees. They can provide safety audits. They can also help you to set up the best possible work environment for your employees.

Take Your Human Resources to the Next Level

Even if your company already has a human resources department, that department may benefit a lot from working with a PEO company. Whatever your human resources department needs, they can express them to a professional employer organization. Then, your HR department and your PEO partner can work together to shore up any weak points in your human resources.

Make the Most of Your Human Talent

Many professional employer organizations place a special emphasis on nurturing talent. Your company is probably full of human talent that has not been cultivated as much as it could be.

With the right training and engagement processes, a PEO company can help you make the most of the talent already in your company. They can also help you adjust hiring practices to maximize how much talent your company has available.

Understand What an Administrative Service Organization Can Do for You

Many people have also heard about ASO services. ASO stands for administrative services only. This refers to a kind of partnership in which another company provides nothing but administrative services for you.

If you set up an administrative services only situation, then your company will still be responsible for funding your employee benefit plan. However, you can still take pressure off of your company leaders by relying on the administrative services that another company can provide.

Benefits of Using an ASO Service

Based on this ASO meaning, you might be able to deduce some of the most common reasons people set up an ASO service.

Large companies may be so complicated that they want to reduce their overhead. Small companies may not have the resources to manage administration on their own. In both cases, ASO options can be the solution.

Understand How PEO Services Can Help Your Business Thrive

We hope learning about PEO services and the benefits they provide has been helpful for you. Many people find that using PEO services allows them to simplify their company’s strategy. The end result can be focusing more on growth and less on organizing existing company resources.

To learn more about PEO services and what they might be able to do for your company, reach out and get in touch with us here at any time!