Professional employer organization

Definition

A professional employer organization (PEO) is an intermediary organization that provides full-service human resource outsourcing. In this arrangement, the PEO manages different employee administrative functions for a company, such as a payroll and benefits administration.

Clients and PEOs enter into a joint-employment partnership, allowing PEOs to share or lease their present talent pool to clients in need. To help them fulfill their clients' demands, PEOs need that their clients provide them with a detailed job description. PEOs search for ideal applicants and assist in the onboarding process of selected candidates.