, (PressExposure) June 17, 2009 -- PEO's, or professional employment organizations are a good alternative because they have huge buying power. Instead of buying health insurance for your company of 5, a PEO might have 10,000 or more co-employees using its health insurance.
The same is true of buying other types of insurance such as worker's compensation and providing other benefits, as well. Since a PEO might have 500 companies and 10,000 employees it works with, for it to be profitable and successful, it must be extremely good at purchasing benefits for all its co-employees and administering them in an efficient yet personalized way.
There are many benefits to having a PEO for any primary employer. Among these are being able to offer a very good benefits package without having a huge number of employees, having a strong outsourced human resources team on your side without having to employ your own staff, ensuring that all employment laws and workplace rules are being followed correctly, and finally, helping protect yourself from employee lawsuits.