MIAMI, FLORIDA, UNITED STATES OF AMERICA , November 3, 2022 /EINPresswire.com/ — For small and medium-sized businesses in the United States, staying afloat during the pandemic and after this crisis has been a major challenge. Companies with zero sales that kept part of their expenses fixed, businesses frozen without being able to open to the public, employee workforces that inevitably had to be cut back in order for the company to survive, etc.

These are just some of the scenarios we have just experienced because of the global pandemic.

The current company´s challenge is to recover their sales and income levels, to regain the positions they had in the different markets and about competitors, to innovate in their product and service portfolios to increase market share and grow in sales, to diversify their business and seek ways to expand so as not to be targeting a single customer segment, among many other strategies to reinvent themselves and maintain their position. All this without leaving aside even for a day the attention to all employee related issues such as Recruiting and Staffing, benefits, payroll and Taxes.

In such a challenging time where entrepreneurs need to focus on their company’s strategic and commercial priorities as well as on sales and profits, A PEO becomes a great strategic partner.

A professional employer organization or PEO is a company that provides comprehensive HR services to businesses on a co-employment basis. In other words, a PEO leases its employees to a company and takes charge of many employee-related liabilities and responsibilities.

The PEO manages part of the company’s HR duties about the co-employment, recruiting, hiring, compliance, and payroll duties but do not have full control over company’s employees, this way, they can keep direct control over the employees.

Working alongside a PEO, The company still has the right to decide promotion schedule, employee’s compensation, vacation plans, etc. Expanding the location, the PEO supports this process to work within the existing legal and administrative framework without establishing a foreign subsidiary.

PEOs are always updated with all legal and financial (taxes) obligations and regulations.


1. Compliance: compliance about HR related issues for employees nationally or internationally located.

2. Wide HR Experience: A PEO can take care of HR processes in a professional way so the company can focus on strategic priorities.

3. Access to Talent: A PEO gives the company access to a large talent pool and this way save time in the selection processes.

4. Cost-Effectiveness: The PEO minimizes time and resources needed to hire new talent as saves costs related to HR.

5. Payroll Administration: Helps calculating payroll taxes and file the necessary paperwork even in different states and countries.

6. Improved Employee Benefits: A PEO aids in designing and implementing employee benefits packages that are sufficiently attractive to attract and retain talent.

Finally, and after listing some of the most obvious benefits of hiring a PEO, and confirming that it is an excellent partner for the growth and expansion of small and medium companies, it is also important to clarify aspects that must be kept under control so they do not become a potential risk when taking a PEO.

• Ensuring those tasks under PEO control, are always aligned with the corporate culture and policies.

• Company´s data managed by the PEO is properly protected by strong security measures.

• Clear and on time communication to employees about the PEO´s role. The people needs to understand properly this so they don’t feel their jobs are in risk or are not going to be part of the company anymore.

This short guide is illustrative about the results that the PEOs have shown in recent years. Isn´t a coincidence that according to the National Association Of Professional Employer Organizations (NAPEO), there are 487 PEOs in the United States, providing services to around 173,000 small and mid-sized companies. Over the years, PEOs have been successful supporting them in their HR needs.

Alejandra Suarez
Innovative PEO Solutions LLC
+57 310 4602598


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