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Yes, a PEO can help a company save money by providing access to more affordable benefits, reducing administrative costs, and improving HR efficiencies, which can lead to increased productivity and profitability. By using a PEO, companies avoid having their own HR departments. These departments can be costly, and are often not viable options for small and medium-sized businesses. In these cases, PEOs can ensure support and compliance while keeping costs lower.

While a PEO can handle many HR functions, depending on its size a company may still need an internal HR person to manage day-to-day tasks. These tasks can include recruiting, performance management, and culture-building initiatives. A PEO can provide support and guidance to an internal HR team, but cannot replace it entirely for a larger business. Small and medium-sized businesses may not typically have an HR person, and may be able to just use a PEO for their needs.

An ASO (administrative services organization) and a PEO (professional employer organization) are similar in that they both provide HR services to businesses. However, while PEOs typically provide a bundled HR solution, ASOs provide a-la-carte services and are not able to offer any cost reductions in insurance.

Among the most common employee onboarding challenges include ensuring legal compliance, efficiently processing paperwork, and effectively integrating new hires into the company culture. Companies big and smal deal with these kinds of challenges, and working with a PEO can help most kinds of businesses handle onboarding more efficiently.

Virtually all HR functions can be outsourced, including recruitment, payroll, benefits administration, compliance, performance management, training, and more. The decision to outsource will depend on the specific needs and resources of each organization, as well as its size, number of employees, budget, and other factors.