Who uses a PEO?
The typical client customer of a PEO is a small to medium sized business with 1 to 200 employees, though larger businesses also find value in a PEO arrangement. These business customers include every single type of business from accountants to zoo keepers and every profession in between including doctors, retailers, mechanics and more.
Any business can find value in a PEO relationship. An average client of a NAPEO member company is a business with 16 work site employees. Increasingly, larger businesses also are finding value in a PEO arrangement, because PEO’s offer robust Web-based HR technologies and expertise in HR management. PEO’s can partner with companies that have 500 or more employees and work in conjunction with their existing human resources department. PEO clients include many different types of businesses ranging from accounting firms to high-tech companies and small manufacturers. Many different types of professionals, including doctors, retailers, mechanics, engineers and plumbers, also benefit from PEO services. How does a PEO arrangement work? Once a client company contracts with a PEO, the PEO will then co-employ the client’s work site employees.
