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Advanced HR, LLC
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Benefits of PEO

To understand the benefits of a PEO, you must first understand what a PEO does. A Professional Employer Organization (PEO) provides comprehensive HR solutions to small and medium sized businesses. These solutions include (but not limited to):

  • Payroll Processing
  • Workers’ Compensation
  • Employee Benefits
  • HR Administration
  • Recruiting Services
  • Risk and Compliance Management

According to the National Association of Professional Employer Organizations (NAPEO), small businesses that work with a PEO typically grow 7% to 9% faster and have a 10% to 14% lower employee turnover when compared to other small businesses who do not use the service.

One of the main advantages of using a PEO is that your employees can get the same level of Employee Benefits as that of a large company but at a fraction of a cost. Why? PEOs take advantage of the concept of Economies of Scale. To put it simple, an average PEO has thousands of payroll employees which enables them to negotiate better benefits’ plans that they can pass on to their clients, i.e. Your Business. Whereas, if a small business tries to get the same level of benefits from a carrier directly, the costs are significantly higher.

Since HR solutions is the main expertise of the PEOs, they understand the daily operations in the HR realm a lot better than your average HR personnel or even the entire department. Having years of experience and specializing in your industry, as well as having access to the most advanced HR tools and applications, enables PEOs to work a lot more efficiently and save money.


Some of the benefits of using are:

  • Reduced Costs
  • Reduced HR Workload
  • More Time to Focus on Growing Your Business
  • Improved Employee Turnover
  • Reduced Risk and Liability
Professional employer organizations (PEOs) are valuable because they take the frustrating corporate tasks out of...