industry profile
In recent years the trend to outsourcing has led many organizations to
seek new ways to remove costs and associated tasks from the company.
The Professional Employment Organization (PEO) business, also sometimes
called the Business Employment Organization (BPO) is a direct result of that interest. Generically, it is an
employee leasing operation. It acts as a third party, finding, qualifying and hiring employees
which are then sent to work for client companies.
This solution to staffing matters works especially well for small and mid-sized companies. Unlike
temporary employee providers, PEOs cater to the long-term or ”permanent” employee needs of companies. They work
closely with the client company to create a customized plan of action and service package.
Companies which need staff but do not want to handle human resources management are rapidly discovering
this resource, which gives them a huge productivity boost through relief from both the time and trouble
of handling staffing and related matters.
Extensive explanations, examples, and other industry background can be found at
www.peo.com and
www.napeo.org.