A professional employer organization (PEO) helps companies outsource their human resources requirements and manages such areas as employee benefits, payroll and workers' compensation. This lets the client companies maintain their focus on what they do best -- run their business. A PEO is different from standard HR consulting or outsourcing firms, which may provide a limited number of services. PEOs should also not be confused with temp firms, staffing agencies or payroll administration companies. A PEO integrates completely into a company's HR framework, providing a comprehensive approach to manage a client company's day-to-day HR needs and responsibilities. Just like having an in-house HR department, a dedicated team of HR specialists will be on-hand to handle critical human resource responsibilities and to manage employer risk factors. The HR team maintains an employer relationship with the client’s employees and assumes certain employer roles, along with the corresponding rights, responsibilities and risks. The tasks and functions taken on by a capable PEO include recruitment and hiring, managing workers' compensation and benefits, payroll and payroll tax management, and managing compliance with government requirements. The PEO staff can help formulate and implement training and development programs, performance management initiatives and policies and guidelines for best practices. This separation of responsibilities is called "co-employment." Companies that do not yet understand the principles and benefits of the co-employment arrangement with a PEO may mistakenly think that they are giving up control of a key area of company operations, and may be hesitant to hire a PEO. But as many success stories amply demonstrate, working with a PEO can actually give the company more control over details that would have otherwise been overlooked. The PEO industry today is experiencing steady growth as companies across the country realize and appreciate the value and benefits PEOs offer. These advantages include the following: * Companies get to offload employment administration and get to focus instead on their core competencies and revenue generating activities. * Clients have access to a team of HR experts who can offer a wealth of solutions, boosting their ability to manage their employees. Having this expertise often translates into higher levels of efficiency and productivity for the company. * By having someone monitor employment practices, government compliance, and risk management, companies minimize their liabilities. The PEO also shares in employer related risks, further reducing the company's employer liabilities. * With someone looking after employment benefits for them, companies can become better places to work in become competitive in the labor market. Client companies can attract high quality workers and improve their workforce. * A company that partners with a much larger PEO also gains the purchasing power of the PEO, allowing them to enjoy the same discounts and savings as the bigger company. Commercial Resources, Inc. (CRI) of Iowa is at the forefront of the PEO industry. Offering a wide range of services, CRI helps companies establish a solid business foundation by effectively integrating systems in all areas of a company's operations. CRI transforms its expertise in regulatory compliance, technology adoption and social trends into tangible benefits to its clients. CRI's services span accounting and bookkeeping, human resource management, financials and web development.
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