Entrepreneur
Many small organizations are turning to Professional Employer Organizations (PEOs) for their human resource needs. From payroll to hiring and beyond, these types of businesses allow small organizations to benefit from HR expertise without having to hire a team in-house. A recent article from Entrepreneur examines these trends, including what size organizations begin to lose the benefits of such outsourced solutions.
While PEOs offer a cost-effective and powerful way for organizations to invest in HR, challenges arise as companies grow. There’s no exact number of employees at which PEOs lose their direct value, but the article points toward a balance of roughly 75 to 100 people on staff. With larger numbers of employees, the accompanying complexity often means that an outsourced PEO approach to human resources begins to lose its value.
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