PEO Consultants Blog

HR and PEOs: Partners, Not Rivals

When human resources professionals entered the business world, their primary role was to make sure employees were hired and got paid. Today, however, HR’s role in business has expanded to include benefits administrator, compliance officer, counselor, trainer, company spokesperson, new employee welcome committee, event planner and, basically, any other tasks that don’t fit neatly into another department’s scope. Many HR departments get mired down in transactional tasks like payroll processing and benefits management when their expertise could better be used to advance company culture, frame workforce strategy and determine functional processes that meet organizational goals. HR “departments” with only one or two employees can be especially burdened with the day-to-day management of benefits and compliance. This is where a Professional Employment Organization (PEO) comes into the picture. Although some HR professionals may view PEOs as a rival, the opposite is true. PEOs can be a vital partner to HR, relieving HR professionals from time-consuming activities such as employee benefits, compensation and payroll administration, workers’ compensation, and employment taxes. Plus – a third party provides some much-needed objectivity in areas such as employee negotiations, harassment allegations and workers’ comp claims.

In reality, PEOs are a valuable asset to company HR departments. Here are some of the burdens a PEO can relieve from your overworked HR team:

  • Benefits management
  • Recruiting and hiring
  • Payroll administration
  • Unemployment management
  • Workers’ compensation processing
  • Compliance assistance
  • Drug testing programs
  • Family and Medical Leave Act supervision

Employers gain economies of scale with a PEO which can result in more benefits and lowers costs for benefits. PEOs free up HR professionals to focus on:

  • Forecasting staffing needs
  • Recruiting and retaining top talent
  • Planning for succession
  • Building a culture that engages employees

A PEO takes away the burden of dealing with employment laws, compliance and never-ending paperwork.

Find your PEO partner to enhance your strategic, in-house HR initiatives, contact us at 888-623-3240 or online for more information.


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