The differences between the terms and the services associated with ‘Employee Leasing’ and ‘Professional Employer Organization’

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What are the Differences Between Employee Leasing Companies and a PEO?

A common misconception is that professional employer organizations (PEOs) are employment or temporary staffing agencies. This is not the case. PEOs are not purveyors of labor to your business. Instead, PEOs like Human Resources, Inc. provide services, compliance, and benefit plans so that you can focus on running your business. It’s an extended relationship wherein we act as the human resources department of the companies we partner with, which is referred to as a co-employment arrangement. For the most part, what used to be called an employee leasing company would focus on staffing, payroll, and workers compensation. A PEO does all of these as well, but also offers a larger suite of HR services which include disciplines such as health and retirement benefits, consulting, and unemployment. This makes PEOs a superior value for small to mid-sized businesses.

Our PEO Services

How many skilled employees would you need to hire to cover all of the disciplines listed below?

  • Payroll
  • Health Insurance
  • Tax Compliance
  • Recruiting
  • Best Practices in Hiring/Termination
  • 401(k) Management
  • Workers’ Compensation & Unemployment Claims Administration
  • Training and Consultations
  • Employee Conflict Resolution
  • Soft Benefit Programs

Partnering with a PEO means you are enlisting the knowledge and expertise of human resources professionals who not only can handle these complex administrative tasks, but are also up-to-date on current legislation that can affect your business. Employer related regulations grow every year. A business that is not in compliance with these laws can face hefty fines. Working with a PEO can help your business avoid these pitfalls.

Reduced risk and peace of mind with PEO employee leasing

A PEO assumes much of the risk and liability of a traditional human resources department. Employers don’t always realize that there is a right way and wrong way to terminate an employee. There is a right way and wrong way to conduct an interview or handle workers compensation claims. In our litigious times, simple mistakes can land you in court. Putting your trust in Human Resources, Inc. can result in bottom-line savings in administration and legal hurdles.

Find out how Human Resources, Inc. can reduce your risk as an employer

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