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Working with a PEO: Who's in Control?

September 5, 2019 - PRemployer

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Even if you find yourself in a position where your company could profit greatly from support services, such as a contracted professional employer organization (PEO), it can feel a bit unnerving to share management of multiple critical aspects of your operation.

However, you don’t have to worry about losing control over your company. PEOs don’t replace your own management, they augment it, coming onboard as a valuable partner to help carry the immense load of running a business efficiently. While your PEO or human resources (HR) partner will assume many responsibilities on your behalf, you will maintain full control over the direction of your business to ensure it stays within your intended vision.

A Partner Relationship

The purpose of a PEO is to provide relief from the burden of employee administration by coming alongside your company as a highly valuable partner. Their goal is not to take control over your business but to simply handle some of the more tedious and time-consuming HR responsibilities. This allows you to focus time, energy, and talent on other day-to-day activities that contribute to your business’ growth.

PEOs possess industry expertise in a variety of areas to help you lower administrative costs, create safer work environments, and offer better employee benefits, which collectively contribute to your company’s bottom line. Additionally, PEOs are knowledgeable about best employment practices and can help your company achieve increased levels of regulatory compliance that protect you in the case of a potential audit or lawsuit.

Taking Tasks of Your Plate

There are certain administrative responsibilities that have to be addressed, which can be time-consuming and divert attention from other aspects of running the business. These are the tasks that a skilled PEO can handle on your behalf. Here is a brief look at some of the responsibilities business managers usually oversee that could be turned over to the PEO:

  • Payroll processing
  • Safety and risk management services
  • HR services and consulting
  • Retirement plan administration
  • Claims management
  • Health benefits insurance
  • Workers’ compensation insurance
  • Workforce management technology
  • Employment practices liability insurance (EPLI) coverage
  • Compliance assistance

PEOs can also help you develop and implement important HR policies and procedures that streamline recruiting, hiring, evaluating, and terminating employees, in addition to a number of other tasks. Even though the PEO is addressing your human resources, risk management, and payroll needs, they are doing so on your behalf, meaning you are still in full control of the company. The PEO is more or less playing a support role in order to help your business grow and expand in the right direction.

Choosing the Right PEO

Because of the important position your PEO fills, it’s important you find one that complements your organization’s particular structure, culture, and needs. Look for a PEO that offers a customizable rather than one-size-fits-all approach, meaning they will create a plan for you, rather than forcing you into a standardized plan that may include several elements that are superfluous or put a strain on your budget.

Although any credible, trustworthy PEO will offer trusted solutions to increase productivity and profitability, you want to find one that is flexible and willing to change or update their approach in order to align with the vision you have for your business. In this way, you maintain total control and can feel confident the business you own is still moving in the direction you desire. Meanwhile, your PEO will help manage risk, reduce liabilities, and ensure compliance with local and state laws and regulations.

The PRemployer Advantage

Although many business owners worry that contracting for PEO services will result in them losing control over the company they’ve spent ample time and money to build, that’s only a common misconception. A qualified PEO, such as PRemployer, has no interest in taking over your company. Rather, their main objective is to provide robust guidance and leadership in shaping and crafting your HR and risk management strategies. You will maintain control over the company while this team of experts and seasoned employees supports you in improving overall performance and profitability.

How to Find the Best PEO for Your Business



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You'll find educational resources, best practices, and business tips created for business owners and leaders. We cover topics including human resources management, PEO, compliance, risk management, staffing, and more. Learn more about who we are here

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