P.E.O. [def]: a Professional Employer Organization, also known as 'employee leasing' or 'co-employment'

As a benefits and HR consulting firm, we offer options for you, the small (10+) to medium-sized employer, that can improve your ability to attract and retain quality employees by significantly expanding your choice of available benefits, reducing your costs for those benefits, and providing cost effective payroll, workmens compensation, and HR advisory services. While not suitable for all employers or situations, in many instances we can develop cost-effective solutions for employers seeking to out-source payroll administration and HR, while lowering workmens compensation and benefits costs, all while retaining your flexibility as an empployer. How do we do this? By combining the best parts of a traditional insurance and HR consultancy with a low-cost, nationwide employee leasing organization that we have partnered with.

BACKGROUND: PEO works in ways similar to traditional employee leasing, but you retain complete control of your employees. There are advantages and disadvantages to this concept; recent IRS rulings, as well as state insurance statutes, make the use of a PEO somewhat less attractive. However, the obvious advantages of human resources management, benefits management, payroll and other services which a PEO brings to the smaller employer merit serious consideration.

The cost per employee is the key to an effective PEO program. Some PEO programs are not cost effective - many PEOs have exorbitant marketing costs, which must be borne by the client, for example. Many PEO's don't allow you to opt out of services or features that you can get on a more cost-effective basis outside of the PEO umbrella. And very few PEO's break out their cost structure - they 'bundle' the services, making it almost impossible to make an apples-to-apples comparison between what's offered through the PEO and what's available elsewhere.

PEO's represent convenience, certainly - but at what cost? With most PEO's, you lose the one thing that any employer needs - the ability to shop and compare services, or to use an independent consultant to help you determine what is the best approach to solving your unique needs, without a 'hard-sell'.

For the employer who is interested in a professional consultation about PEOs and other alternatives, email us below or call our offices at 303-422.1660 for a free initial consultation.

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