Professional employee organizations typically provide smaller companies with benefits, HR, payroll and many of the services that smaller startup companies need. The pricing is either based on a fixed fee or a percentage of payroll. They are designed for companies that lack the internal staffing to have a professional HR department or the desire to manage these administrative tasks.
PEOs are frequently used by startups. We have seen many examples of situations where the startup has grown to 150-200 employees and the company, by default, continues to use the PEO. However, at that size, the PEO is probably no longer a cost-effective resource. Perhaps this is an opportunity for you.
